Pricing strategies

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

Give one non-financial method to motivate employees in a business.

Figure 4 shows the UK market share of the four largest cinema chains in 2016 and 2019.

(Source: https://www.bfi.org.uk/industry-data-insights/statistical-yearbook 2017 and 2020)

Using the information in Figure 4, identify the only cinema chain that increased its market share in 2019 .

Outline one likely responsibility for a manager of a Cineworld cinema.

In order to cover its loan repayments, Cineworld plc is considering the following two options:

Option 1: selling assets

Option 2: issue new share capital.

Justify which one of these two options Cineworld plc should choose.

Evaluate the importance of charging lower prices to allow Cineworld to return to profit. You should use the information provided as well as your knowledge of business.

State one possible influence on the pricing strategy used by Ocado.

Outline one drawback to Ocado of using just in time (JIT) stock control.

In order to increase its share of the online grocery market, Ocado has considered two options:

Option 1: offering a faster delivery service

Option 2: expanding its product range.

Justify which one of these two options Ocado should choose.

State one good that Greggs produces in its factories.

Outline one benefit to Greggs of being a public limited company (plc).

In order to continue the growth in its sales, Greggs is considering two options:

Option 1: differentiate its product range

Option 2: lower its prices.

Justify which one of these two options Greggs should choose.

Give one element of the marketing mix.

Figure 6 shows the ASOS share price over time.

January 2015 January 2016 January 2017 January 2018 January 2019

Time

Figure 6

(Source: adapted from https://www.asosplc.com/ investors/share-price/share-price-chart)

Using the information in Figure 6, identify the year when the ASOS share price was higher than £70.

Outline one advantage to ASOS of increasing the range of products offered for sale on its website.

In order to increase its profits, ASOS is considering two options:

Option 1: lower prices

Option 2: advertise on more social media channels.

Justify which one of these two options ASOS should choose.

Evaluate whether high quality logistics will give ASOS a competitive advantage. You should use the information provided as well as your knowledge of business.

State one job role that may be found in a fast food outlet such as KFC.

Outline one benefit to KFC of using social media to interact with its customers.

In order to regain its lost market share, KFC considered two options:

Option 1: lower prices

Option 2: use viral advertising.

Justify which one of these two options KFC should choose.

Define the term pressure group.

Figure 4 shows information about the change in Iceland’ s sales revenue between 2013 and 2017.

Percentage change in sales revenue 2013 to 2017

(Source: http://about.iceland.co.uk/wp-content/uploads/2017/12/ Iceland-Topco-Ltd-2017-results.pdf)

Using the information in Figure 4, identify the year with the smallest percentage change in Iceland’ s sales revenue.

Outline one factor that could influence Iceland’ s choice of pricing strategy for its range of new products.

In order to recruit employees for its new ‘The Food Warehouse’ stores, Iceland is considering two options:

Option 1: offer permanent contracts

Option 2: offer temporary contracts.

Justify which one of these two options Iceland should choose.

Evaluate whether Iceland is likely to benefit from its decision to ban all plastic packaging on its own-brand products. You should use the information provided as well as your knowledge of business.