What are two benefits of a USP (unique selling point) for a business like Coca Cola?
One benefit may be that Coca-Cola can differentiate themselves from competitors. This means that customers will have a unique perception of their product compared to those of competitors like Pepsi, and could result in higher brand loyalty. Higher brand loyalty can lead to higher sales and an improved net profit.A second benefit may be that Coca-Cola can enjoy a more price inelastic demand, meaning that demand is less sensitive to changes in price. As customers are willing to pay more for a unique brand, Coca-Cola may charge a higher price and increase total revenue, potentially improving net profits as well.
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