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Essay text:
They have to uphold their strong brand image in order to maintain prices. The challenge for Electrolux is to come up with a product which is affordable and maximises value to customers through its unique functions.
Option 1: A carbonated water dispenser caters to a niche- consumers who prefer carbonated water. With a niche market there may be a risk of the market not being large enough for economies of scale especially since the product is costly to produce. Electrolux should also have realised that packaging such as San Pellegrino adds to its luxurious appeal and not just the actual refreshing taste...
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