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.

WR
Answered by William R. Business Studies tutor

6004 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

Explain two benefits to a business of using part-time staff


Describe two leadership styles?


Identify and explain one advantage and one disadvantage of using text (SMS) messages as a method of internal communication.


X Ltd is selling their only product at 12.50 per unit and they have managed to sell a total of 3000 units. They currently have total costs at £32000, £15000 of which are Fixed costs. How much is the total revenue and the total Variable costs?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning