AQA A-Level Business: Marketing
6 exam-style questions with full mark schemes and model answers. Write your own answer and the AI examiner marks it against the mark scheme.
Read the following case study and answer the question that follows.
The following case study was written for this exercise.
Verata Cosmetics is a UK skincare company founded in 2017. It sells a range of moisturisers, serums and cleansers positioned as a "clean, science-led" premium brand, priced roughly 30 per cent above supermarket own-label ranges. Verata currently holds about 4 per cent of the UK premium-skincare market by value and sells mainly through its own website and a handful of department-store concessions. Its best-selling serum, launched in 2018, now accounts for 45 per cent of revenue but its sales have plateaued over the last two years, while two newer competitor serums have grown quickly.
The board has set a marketing objective to raise Verata's market share from 4 per cent to 7 per cent within three years. The marketing director is weighing several routes: broadening the range and moving into supermarkets to reach a mass market; sharpening the brand's positioning towards a narrower, higher-spending niche; investing in extension strategies for the ageing flagship serum; or cutting prices to compete on value. The founders are anxious that any move into supermarkets could dilute the premium brand that loyal customers value.
Question: Evaluate the most effective way for Verata Cosmetics to increase its market share. [25 marks]
Read the following case study and answer the question that follows.
The following case study was written for this exercise.
Pennine Sportswear Ltd is a small Yorkshire start-up planning to launch a range of recycled-fabric running kit aimed at environmentally conscious club runners. The two founders have invested their own savings and secured a small bank loan. They believe there is a gap in the market: existing performance kit is rarely made from recycled materials, and committed club runners might pay a premium for a sustainable alternative. They have a budget of about £20,000 for activity before launch.
The founders disagree about how to spend it. One wants to commission market research first — a survey of club runners and a small number of focus groups — to test demand, the price runners would accept, and which product features matter most, before committing to production. The other argues that the market is obviously there, that research is slow and expensive, and that the £20,000 would be better spent on stock and a launch campaign so the product reaches the shelves sooner.
Question: Assess the value of market research to Pennine Sportswear Ltd before it launches its range of running kit. [16 marks]
Read the following case study and answer the question that follows.
The following case study was written for this exercise.
Cobalt Coffee Roasters is a small business that roasts and sells speciality coffee beans online and through three city-centre cafes. It competes against several larger roasters whose beans look similar to customers and are sold at comparable prices, and Cobalt's owners are worried that customers see little difference between the brands. They want to use the marketing mix to make Cobalt stand out, so that customers choose Cobalt and are willing to pay a slightly higher price. They are considering options across the seven elements of the marketing mix, including the product itself, promotion, the in-cafe experience and the people who serve customers.
Question: Analyse two ways in which Cobalt Coffee Roasters could use the marketing mix to differentiate its product. [9 marks]
Harborne Bakehouse, a regional bakery chain, raises the price of its premium sourdough loaf. The table below shows the price and weekly unit sales before and after the change.
| Before | After | |
|---|---|---|
| Price per loaf | £20.00 | £22.00 |
| Weekly sales (units) | 5,000 | 4,400 |
Calculate the price elasticity of demand (PED) for the sourdough loaf. State whether demand is price elastic or price inelastic, and explain what happens to Harborne's weekly sales revenue as a result of the price rise. (6 marks)
Larkspur Games is a small toy company whose best-known board game has reached the decline stage of its product life cycle: annual sales have fallen for three years running. Rather than withdraw the game, Larkspur is considering an extension strategy, such as releasing new themed editions and expansion packs and refreshing the artwork and promotion.
Explain why a product in the decline stage of its life cycle, such as Larkspur's board game, might use an extension strategy. (5 marks)
Tideway Drinks Co sells a range of sparkling soft drinks. Last year its sales in the UK flavoured-water market were £3.2 million, and total sales across the whole UK flavoured-water market were £40 million.
Calculate Tideway Drinks Co's market share of the UK flavoured-water market. (4 marks)