Practise market research by selecting methods, using qualitative or quantitative data and evaluating evidence before product decisions.
Huawei has to maintain the quality of its products to be able to compete with other businesses, as well as generating profit. It must also ensure that the products it produces meet the needs of its customers as well as introducing new and different forms of technology. On its website it states 'Huawei are committed to bringing digital to every person, home and organisation for a fully connected, intelligent worlds'.
In January 2019 Huawei launched the Huawei 10 Pro smartphone in the US at a cost of 5353 Renminbi (CNY).
The exchange rate was $ 1=6.70 CNY (Chinese Yuan Renminbi)
Evaluate why Huawei would carry out market research before designing a new product. You should use the information provided as well as your own knowledge of business.
AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks
- Market research finds out what customers' needs and wants are
- By carrying out market research Huawei will be able to make informed decisions as to actions it should take
A02
- If Huawei produces a watch that very few customers want then it could waste a great deal of money
- Huawei may decide to add additional features or reduce or increase the size of its smartphones from comments made by potential customers
A03
- This could have a negative effect on Huawei's financial situation and also impact upon the development of other products such as tablets that Huawei makes and sells
- This could help increase sales of tablets and smartphones and enable Huawei to remain competitive
A04
- However, producing a watch that no other business is offering could mean that it sells more of the products and gains a competitive advantage
- However, there is no guarantee that all the market research carried out is worthwhile as customers' tastes and needs are changing constantly in light of new technological developments
(12)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-4
- Demonstrates elements of knowledge and understanding of business concepts and issues, with limited business terminology used (AO1).
- Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).
- Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3).
- Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made (AO4).
Level 2
5-8
- Demonstrates mostly accurate knowledge and understanding of business concepts and issues including appropriate use of business terminology in places (AO1).
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3).
- Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made (AO4).
Level 3
9-12
- Demonstrates accurate knowledge and understanding of business concepts and issues throughout, including appropriate use of business terminology (AO1).
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3).
- Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made (AO4).
Saha is a small business in Türkiye (formerly known as Turkey) that opened in 2020 with 15 employees. It designs and manufactures robots which are used in hospitals, hotels and restaurants. In hospitals its robots are used to move medical supplies between departments. In hotels and restaurants, the robots are used to welcome customers as they arrive and deliver food and drinks to hotel rooms and restaurant tables. Saha provides a seven day a week customer service for all businesses buying its robots.
Many new businesses are entering the global robot market and are competing for market share. Competitors in Türkiye include NIO, Zoox and Vention.
Saha has ambitious growth plans and has started to design robots that will be used in the home to help people with cleaning, shopping, security and entertainment. It aims to become a multinational business within five years to manufacture robots in all continents of the world.
Which one of the following is an example of secondary research?
Select one answer.
Government reports
Surveys
Focus groups
Observations
A
Analyse two methods of primary research that could be of benefit to Saha when developing its products.
AO2 = 3 marks AO3 = 3 marks
A02
A03
Feedback from interviews will help Saha design robots which are better suited to the needs of its customers based in the hospitals
- The discussions in the focus groups may give Saha ideas on how to improve the function of the robots to meet the requirements of its customers
(6)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).
- Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3).
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3).
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3).
Question
Number
State one reason why branding is important to
Saha.
Mark
Answer
Most people recognise Heinz for the phrase '57 varieties' even though it now produces many more than the original 57 varieties. H J Heinz, the founder of the Heinz business, believed the phrase sounded lucky.
Kraft Heinz is a world-wide producer of food products. It was formed from the merger of Kraft Foods and Heinz in 2015. This created the third largest food and drinks business in the USA and the fifth largest food and drinks business in the world.
Kraft Heinz has over 24 different brands, including Greenseas in Australia and Nutri+Plus in New Zealand. America has the largest number of brands from Maxwell House to Cool Whip. Kraft Heinz produces many different products including tomato sauce, 'Mac\&Cheese', pasta and its famous baked beans that are used and eaten by many people.
Kraft Heinz uses many methods to advertise its products. These include posters, billboards and leaflets in supermarkets.
Which one of the following is an example of primary market research?
Select one answer.
Published government statistics
Magazine article
Internet research
Focus groups
D
Kraft Heinz is introducing a new variety of tomato sauce and has made changes to the recipe for its Mac\&Cheese.
Analyse the benefits to Kraft Heinz of using social media to collect market research data.
AO2 = 3 marks AO3 = 3 marks
A02
A03
(6)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).
- Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3).
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3).
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3).