Business (AS & A Level) · Oct / Nov 2024 · Paper 22 · Question 2

The Drink Company (TDC) TDC is a multinational carbonated drinks manufacturer with limited liability. TDC had budgeted that its annual revenue would be $400m for the year ended 2023. In 2023, TDC commissioned some primary market research to analyse its product portfolio using the Boston Matrix (see Table 2.1). Table 2.1: Boston Matrix analysis Market growth % Market share % High Low High VKola VTropical Low VLemon VOrange The Board of Directors has set two objectives for TDC to achieve by the end of 2025: • to increase TDC’s profit margin by reducing the cost of raw materials • to increase TDC’s market share of the business to consumer (B2C) market for carbonated drinks. As part of its business plan to achieve these objectives, TDC is now merging with one of its main competitors, Harvest Liquids (HL). Table 2.2 shows some data about TDC and HL. Table 2.2: Data about TDC and HL in 2023 TDC HL Revenue $340m $280m Profit for the year $23.8m $14m Targeted market segment Teenagers and young adults Restaurants, events and hotels Type of market Consumer market (B2C) Industrial market (B2B) 5 10 15 20

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