AAN1 Task 1: Applying Systems Thinking Basics
Case Study #2
A1.
Key Events
Economic growth has slowed.
“Better For You All” experiences declining sales.
The company relies heavily on price promotion campaigns.
Supermarkets gain increasing control over promotions.
The company struggles to increase revenue and separate its brand from competitors.
Key Patterns
Increased use of promotional pricing.
Consumers become focused on price rather than brand loyalty.
Retailers gain more negotiating power as the company becomes reliant on promotions.
The company uses temporary sales tactics rather than developing new products.
Underlying Structure
A highly competitive breakfast cereal market with little product differentiation.
Dependence on price-based competition rather than innovation.
Retailers control access to consumers and marketing opportunities.
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