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Diary foods ltd., has been well known for it’s products throughout India. They started manufacturing Biscuits and chocolates in the year 1995 and slowly built their brand. The company occupied the top position in terms of sales and it increased it’s product range also. By 2010 they were the undisputed leader in the field of confectionaries. Their annual general meeting was held wherein the Board of directors felt that the company should also be socially responsible in doing their business. They decided to use new technologically advanced recycled paper for all their products which would retain the freshness of their products as well as contribute towards the saving of our planet. By doing this the company has modified their goods in a particular way to create a new product of greater value to the customers. Identify the concept mentioned above and explain it from financial and marketing point of view. |
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Answer» Value addition Business can add values to goods and services by modifying them in a particular way to create a new product of greater value to customers. Added value, from a financial point of view, represents the difference between the value of goods and services that are used as inputs to a production process and the value of the outputs of that process. Added value, from a marketing perspective, means adding value that turns a commodity into a branded product. Branded products and services can also have value addition by enhancing their design, characteristics or range of features. |
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