O'Level  &

A more luxurious image could be built for the brand by changing the packaging (K). By using better packaging materials, Jerome could increase the price the customers are willing to pay for his low sugar drink, increasing added value (App). The increased profits from added value could be used to pay off the extra costs when changing the packaging (An).

By using cheaper materials and keeping the price same, the difference between the selling price and brought-in components can be increased (K). However, Jerome's customers may not be willing to pay the same price that they did previously for cheaper quality ingredients (App). Thus, this might lead to a decrease in the number of sales, but increases in added value (An).