Assignment example

How are the products affected by these trends, and why? The effects can be negative, or they can be positive (eg. an opportunity). The trends affectBic in several ways and it could be both positive and negative. The rising budget consciousness of its market meant that Bic’s market is expanding and this means that its market base is increasing particularly on its budget friendly reusable razors where it leads in the budget category of razors in the market. Women are also now using razors albeit for a different reason (shaving legs and pubic hair) and this meant doubling of the traditional market which used to be just males.
While the razor business looks promising and bright for Bic, other area of business however does not look good especially with the advent of computers and electronics. A significant portion of the consumers in North America are Millennials who are dependent on their electronic gadgets in their daily lives. This trend has a negative impact to Bic because it undermines one of its primary products which are stationery, notebooks and pens. The trend says that the more the millennial market spends on electronics and gadget, the less they will spend to stationeries and pen which are Bic’s products. In addition, the pervasive use of gadgets also provided an alternative to Bic’s other traditional products which are coloring, drawing pencils, crayons and felt pens. They can now also be done in softwares such as photoshop, Corel Draw or other apps and this means reduction in demand and consequently, market share.
Other traditional products however such as sticky notes and writing pens (white board) will not be affected by the trend of increased use of gadgets. Their demand could even increase as their use are becoming popular in presentations and group meetings.
Another trend that could run counter to Bic’s profitability interest in the long run is its lighter market. At present, 40% of Millennials and 21% of adults may be smoker but this trend is going down. The increasing awareness for health and the ill effects of smoking will have negative impact on the demand for cigarettes and along with it is the decreasing demand for lighters which is Bic’s product. Various interests groups and advertising campaigns are increasingly becoming aggressive in convincing people to quit smoking. At present, many people are already trying to quit smoking or are resorting to e-cigarettes as an alternative. The figures are discouraging because 44% of men and women are already using e-cigarettes which have no use of Bic’s lighters. Either way, this does not spell good for Bic because it undermines its lighter products. Bic should anticipate that the trend of the market will eventually shrink.
Bic should also rethink its position about advertising. Bic does not traditionally do advertising because it once dominated the market. Today, the competition has become intense with various alternatives presented to the market. Bic should not be left behind and capitalize on the new media to remain relevant and profitable despite the changing trends in the market.