Question 1(c)
[Maximum number: 8]
Analyse two elements of the marketing mix that PS should consider when launching the new packaging.
CAIE A-Level Business 3.3 The Marketing Mix Question Bank
Practise integrating product, price, promotion and place decisions, using calculations and case evidence to analyse trade-offs and evaluate a coherent marketing strategy.
Exam points
- apply each relevant P to the target market rather than discussing product, price or promotion in isolation
- use pricing, sales or portfolio data to support a marketing decision and trace its commercial effect
- evaluate the mix by testing consistency between objectives, customer needs, competitors and resources
Covered syllabus points
Question 1(b)
[Maximum number: 3]
Explain one pricing method.
Question 2(c)
[Maximum number: 8]
Fresh Farm (FF)
FF is a partnership in country Q that grows a range of fruits and vegetables, such as apples, carrots and potatoes. FF also provides an advisory service to other farmers. The partnership was established in 2018 by three friends, Amrit, Harry and Sally, who provided the working capital. Their aim was to produce healthy and tasty food for themselves and others.
FF grows crops using natural methods and practices. The produce is free from chemicals and pesticides. It only uses renewable energy sources, such as solar panels and wind turbines. It harvests the crops by hand or using simple machines that minimise damage or waste, but this is labour intensive.
FF sells its products directly to consumers through its own farm shop and online delivery service. It also sells to local restaurants. Table 2.1 shows information on FF's revenue and costs in 2024.
Table 2.1 Extract from FF's financial data for 2024
FF has gained a loyal customer base who appreciate the quality, flavour and nutrition of its products. However, FF also faces some challenges and risks in the competitive and uncertain food market. FF has limited capacity in producing crops. Weather conditions affect its yield and quality. It also must deal with pests, diseases and natural disasters that could damage or destroy its crops.
Another challenge that FF faces is the high level of demand for its products in the market. The partnership must meet the expectations and requirements of its customers who want fresh, varied and consistent products throughout the year.
Analyse two benefits to FF of product differentiation.
Question 2(d)
[Maximum number: 12]
Popular Drinks (PD)
PD is a mass market fizzy drinks manufacturer in country Z. The fizzy drinks market in country Z is dominated by a few well-known brands. The total market value is $ 5.3 bn and the PD brand has a 17% share of this market.
Pablo was recruited to be the Marketing Director of PD in 2022. He launched a new promotional campaign based on trending music on social media. He decided to use social media influencers to focus on this market.
Online feedback of the campaign was poor. Many of PD's customers did not want to be associated with trending music. National news highlighted the negative feedback and PD's sales volume decreased by 20% within a week and continued falling. This led to excess inventory in PD's warehouses. The bad publicity also caused a drop in PD's share price and a negative impact on cash flow.
Fig. 2.1 shows feedback from a recent questionnaire where previous PD customers were asked what they thought about the promotional campaign.
Fig. 2.1 Market analysis data of a sample of PD's customers
Pablo has called an emergency meeting of PD's marketing managers to repair the damage done to the PD brand from this recent promotional campaign.
Evaluate the importance of branding to the future success of PD.
Question 6
Question 6(a)
(a)
Analyse two benefits to a business of using a Boston Matrix.
[ 8 ]
Question 6(b)
(b)
'Packaging is the most effective promotion method for a fast-food business.'
Evaluate this view.
[ 12 ]