Practise analysing markets through customer needs, loyalty, segmentation, competition and changing spending patterns in business cases.
Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.
NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm.
NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity.
State one reason why NOF segments its target market by income.
A02-1 mark
Award 1 mark for a reason why NOF segments its
target market by income.
Accept any other appropriate response.
(1)
Analyse the importance of marketing to NOF.
AO2 =3 marks AO3 =3 marks
AO2
- Result from marketing would enable NOF to adapt its overnight accommodation to what the customers want.
- Marketing can be used to make customers aware of its organic honey.
AO3
- This may lead to increased bookings for the overnight accommodation.
- Sales of organic honey may increase.
(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)
Can Culleretes offers a fixed price dinner menu at € 38.40 per person. Groups of five or more are given a discount of 12.5% on their total bill.
The city of Barcelona has seen a number of new restaurants offering various menus such as Italian and Turkish.
Analyse the importance of Can Culleretes responding to changes in its market.
AO2-3 marks AO3-3 marks
A02
- Montserrat and Alicia need to keep up with changing customer tastes if they want to remain competitive
- As the second oldest restaurant in Spain it may place no importance in responding to changes in the market
A03
- They are located in a busy area and want to make sure customers are drawn to them over the other restaurants in the area
- Despite the market changing customers are drawn to Can Culleretes because of it being a family run business and its long history so may see no need to change if it is successful enough as it is
(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)
State one reason why TBTS might segment its market.
A02-1 mark
Award 1 mark for a valid reason TBTS might segment the market in the context of TBTS
- TBTS will be able to aim its toys appropriately to different age groups (1)
NB Do not accept a reason that is not in the context of TBTS
Accept any other appropriate response
(1)