CAIE A-Level Business AS 3.2.2 Primary and Secondary Research

[Maximum number: 12]

Fizzy Drinks (FD)

FD is a private sector business that manufactures an international brand of carbonated drinks. Its slogan was 'A premium drink for premium customers'. The market for FD's drinks is very competitive, with 7 national and 12 international brands all competing in the same market. Recently FD lost the title of market leader to TR, one of its largest competitors. TR is a multinational public limited company.

Table 2.1 FD financial data 2023

Employee morale has dropped as a result of the negative feedback. Key employees have left to work for FD's competitors. The lack of experienced employees has led to a drop in the productivity of the production process.

Evaluate the usefulness to FD of market research methods to inform future marketing decisions.

Figure for Answer to Question CAIE A-Level Business AS 3.2.2 Primary Research and Secondary Research Questions question 1 — CAIE A-Level Business AS

Indicative content

Responses may include:

AO1 Knowledge and understanding

Knowledge of the features of marketing research methods to inform future marketing decisions (max 2 marks), including:

- Market research is the process of collecting, recording and analysing data about customers, competitors and the market

- Market research can be primary and/or secondary

- Market research data can be quantitative and/or qualitative

- Purposes of market research - understand the market, reduce risk, understand customers, predict trends

- Primary market research methods or examples

- Secondary market research methods or examples

AO2 Application

Context applied to features of market research methods to inform future marketing decisions (max 2 marks), including:

- International brand of carbonated drinks

- Research focused on customer preferences

- Slogan was 'A premium drink for premium customers'.

- 7 national and 12 international brands

- FD lost the title of market leader to TR

- Reduced its marketing budget.

- Evidence of high customer loyalty

- Change in ingredients led to FD's products tasting similar to their competitors

- Feedback highlighting a 'flavourless drink' and demand fell rapidly

- Brand name and customer loyalty was lost

AO3 Analysis

Limited analysis - candidate shows one link in the chain of analysis.

Developed analysis - candidate shows two or more links in the chain of analysis.

- Primary research data;
understand customer needs - so can increase sales

- Can help decide whether new business ideas are suitable/relevant;
reduces long term costs of a failed product/brand

- Identify products customers find appealing;
reduces marketing budgets

- Make packaging and branding decisions;
attract customer interest

- May not provide much unknown data;
data may already exist so not increase sales

- Is there marketing budget suitable;
may not have enough finance

AO4 Evaluation

Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment

Developed evaluation E - supported judgement and/or reasonable evaluative comment Developed evaluation in context ${ }^{[\text {EE }]}$ - supported judgement in context and/or reasonable evaluative comment in context.

- A judgement about the likely usefulness to FD of market research methods to inform future marketing decisions.

- Elements that the judgement could depend upon, available finance, brand reputation, competitor branding, taste, trust.

- Weighing up of the impacts on external factors to the proposed of market research methods to inform future marketing decisions.

Accept all valid responses.

Exemplars for awarding evaluation

□

L1 (limited supporting evidence)	L2 □ (developed supporting evidence)	L3 ${ }^{\text {[EE] }}$ (developed supporting evidence with context)
Market research methods are useful to FD.	Market research methods are useful to FD because it can help the business make decisions to better meet customer needs.	Market research methods are useful to FD because it can help the business make decisions to better meet customer needs and therefore regain its position as market leader.
FD should not use market research methods to support future marketing decisions.	FD should not use market research methods to support future marketing decisions in case the data is misleading.	FD should not use market research methods to support future marketing decisions, such as reducing the quality of ingredients in its drinks, in case the data is misleading.
In the short-term market research methods are a good way to inform future marketing decisions.	In the short-term market research methods are a good way to inform future marketing decisions, but in the long-term changes in the external environment may reduce the value of the market research data.	In the short-term market research methods are a good way to inform future marketing decisions, but in the long-term changes in the external environment may reduce the value of the market research data, especially as the market is competitive with 7 national and 12 international brands.

CAIE A-Level Business AS 3.2.2 Primary Research and Secondary Research Questions question 1