The marketing mix

Item C: Solar Scene Ltd

Explain one negative impact a business may have on the environment.

Telesales staff at Solar Scene Ltd have excellent technical knowledge of the solar panels and can address concerns immediately.

Explain one reason why Solar Scene Ltd uses telesales to distribute solar panels.

The solar panel market is a growing market and in 2024 grew by 40%. The average sales revenue growth of competitors is 35%.

Analyse one way that the information in Solar Scene Ltd’s income statements would help potential investors decide whether to invest in the company.

Item D: Solar Scene Ltd

Explain one benefit for a business of using market segmentation.

Solar Scene Ltd has placed an order with its supplier for 8 solar panels. The total cost of the order is £12 000.

Using the information in Item D, calculate the cost of the order once the discount has been applied.

Show all workings.

Using the information in Table 2, calculate the gross profit margin for Solar Scene Ltd for 2024.

Show all workings.

Whilst the business grows, Karl will communicate with staff through monthly, instead of weekly, meetings.

Analyse one type of diseconomies of scale that may occur if Solar Scene Ltd expands quickly.

Item E: Solar Scene Ltd

Karl wants Solar Scene Ltd to expand into the business segment of the market. He is considering two options:

1. Apply for a government grant to build a factory in the UK

2. Merge with a manufacturer in China

Analyse the effect of each of these two options for Solar Scene Ltd.

Evaluate which of these two options will have the biggest impact on the ability of Solar Scene Ltd to be competitive in the business segment of the market.

Item C: Emilios

Explain one way a business might measure its success, other than profit.

Explain one reason why Cornets Ltd decided to sell its ice cream cones through a wholesaler.

Emilios gives away free samples of its ‘flavour of the day’ to boost sales.

Analyse one drawback of Emilios offering free samples.

Item D: Emilios

Figure 1 Food preferences of the UK population – 2023 forecast

Emilios is introducing a range of vegan ice cream. To produce the new ice cream, it will need to purchase more equipment. The equipment will cost £12 000 and has an estimated life of eight years. Emilios predicts that using the equipment will lead to an additional profit of £28 800 over its lifetime.

Emilios currently pays a cleaning company a fixed amount to clean the ice cream shop every evening after closing time. The ice cream shop is quiet in the mornings and sometimes Emilios’ staff do not have much to do.

A low-cost supermarket chain has recently opened in a nearby town. The supermarket is known for its cheap ‘value’ range of foods. The supermarket sells all the ingredients Emilios uses to make its ice cream. Emilios has calculated that the cost of buying its ice cream ingredients from the wholesaler has increased by 25% over the last two years.

The UK population is forecasted to be 68.26m in 2023.

Using Figure 1, calculate the predicted number of vegans in the UK in 2023.

Show all workings.

Give your answer to two decimal places.

Using Item D, calculate the average rate of return for the new equipment if Emilios purchases it.

State the formula for the average rate of return and show your workings.

Emilios is looking to maintain standards at the ice cream shop while reducing costs.

Analyse one action Emilios could take to reduce its costs.

Item E: Emilios

Emilios wants to increase sales revenue during the winter months. It is considering two options to achieve this. Both options will cost the same to set up. The options are:

• develop a new product range of ice cream desserts to sell to the restaurant chain

• expand by opening an ice cream shop in the town centre.

Analyse the effect of each of these two options on Emilios.

Evaluate which of these two options will have the biggest impact on sales revenue for Emilios.

Free gifts are an example of which type of marketing activity?

An increase in interest rates would be which type of change?

Which term describes the sales of one business as a proportion of the total sales of the market?

Which section of a statement of financial position would include long-term loans?

Which of these is an example of a business in the secondary sector?

Which of the following is a definition of average rate of return?

Identify two channels of distribution used by businesses.

Explain one factor that would influence the selection of the promotional mix.

Explain one reason why it is important for a business to identify customer needs.

All businesses must follow the law. Explain one negative impact for a business if it fails to follow the law.

Table 1 Extract from a statement of financial position

Since the data in Table 1 was produced, the value of inventories has decreased by 20%. The value of all other assets has stayed the same.

Calculate the new total assets figure.

State and explain two categories of the Boston Matrix.

Which element of the marketing mix involves selecting a channel of distribution?

Which source of finance is available to a limited company but not a sole trader?

Which pricing method involves calculating the costs of production and adding a percentage to make a profit?

What is the name for the category of products in the Boston Matrix labelled X below?

Which method of growth involves employing another business to produce products or provide services?

Which of the following would be on a statement of financial position?

Explain what is meant by the term ‘economies of scale’.

Identify two ways business activity can have an impact on the environment.

Way 1

Way 2

Explain one way a business can minimise risk.

Explain one way that promoting a good or service can increase sales.

Use the break-even chart below to calculate the margin of safety in units if the actual number of units sold was 700.

Show all workings.

State and explain two extension strategies that can extend the life cycle of a product.

Item C: Devine Jewellery (DJ) plc

Explain one way that shareholders can have an impact on a business.

Using Item C, explain one way that Devine Jewellery is able to compete successfully internationally.

Use the information in Item C to calculate the percentage decrease in the selling price of a bracelet if it is made from silver instead of gold.

Show all workings.

Analyse one potential impact of the new jewellery collection on Devine Jewellery.

Item D: Devine Jewellery (DJ) plc

Explain one way a business can use digital technology to communicate with customers.

Explain one way that Devine Jewellery will be affected if the exchange rate of the pound falls against other currencies.

Analyse one benefit to Devine Jewellery of using sponsorship of the fashion show to promote its jewellery.

Item E: Devine Jewellery (DJ) plc

Dev wants to improve the financial performance of Devine Jewellery. Dev is considering two options to achieve this. Recommend whether Devine Jewellery should:

• use the hotel chain as a channel of distribution to sell its jewellery

• remove the current credit scheme so that customers can no longer pay for jewellery in monthly instalments.

Analyse the effect of each of these two options on Devine Jewellery.

Evaluate which of these two options will have the biggest impact on the future success of Devine Jewellery.