Marketing Mix & Strategy | Edexcel A Level Business Exam Questions & Answers 2015 [PDF]

1

4 marks

Read the following extracts (E to G) (opens in a new tab) before answering

Explain how Pfizer could benefit from using a price skimming strategy

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9

10 marks

Extract A
GreenBite Ltd
GreenBite Ltd is a UK-based food manufacturing business that produces chilled plant-based meals for the mass market. The business sells its products through major UK supermarkets and directly to consumers via its own online ordering platform. GreenBite positions itself as a convenient and affordable alternative to eating out, targeting customers who want quick meal options without cooking from scratch.
GreenBite’s management team is analysing how changes in household income have affected demand for its online products. During 2023, food price inflation remained high and many households looked for cheaper alternatives to eating out, including ready-made meals purchased online.

Extract B
Working at GreenBite’s production site
GreenBite employs 220 workers at its main production facility. Most employees work on food preparation, packaging and quality checks. Jobs are clearly defined and production follows a set process to ensure food safety standards are met.
Employees are paid an hourly wage, with the opportunity to earn a monthly bonus if production targets are met and wastage is reduced. Training is provided when new equipment is introduced, but promotion opportunities are limited because the business has a relatively flat organisational structure.
GreenBite also offers flexible shift patterns, which are popular with employees who have caring responsibilities. Staff surveys suggest that while pay is important, many employees also value job security and predictable working hours.

Extract C
Marketing GreenBite products
GreenBite’s marketing focuses on health, convenience and sustainability. Its packaging uses simple designs and clearly displays nutritional information. The business has invested heavily in digital marketing, including social media advertising and partnerships with food bloggers.
In 2023, GreenBite launched a new marketing campaign based around the idea of “easy everyday choices”. The campaign aimed to attract customers who were not fully committed to plant-based diets but wanted to reduce their meat consumption.
Market research showed that brand awareness increased from 18% to 26% following the campaign. However, some customers continued to view GreenBite meals as more expensive than supermarket own-brand alternatives.

Assess the likely importance of GreenBite’s “easy everyday choices” marketing campaign to the business.

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10

10 marks

Read extracts A to D before answering questions

Extract A
UK chocolate and sugar confectionery market data (2020-2024)
The UK market has grown in value from £5.24bn (2020) to £6.78bn (2024), but volume sales fell from 620 million kg to 590 million kg. Value growth reflects price rises, not increased demand. Average price per kg rose 36% since 2020, driven by commodity inflation and supply chain disruptions in 2022-23.
Volume decline was most pronounced in sugar confectionery due to health concerns. Premium and dark chocolate outperformed milk chocolate.
Source: adapted from Kantar Worldpanel UK Confectionery Report 2024

Extract B
Mondelez to close Cadbury factory in Ireland with loss of 400 jobs
Mondelez International will close its Cadbury facility in Rathmore, Ireland, with 400 job losses. The 50-year-old factory produces Cadbury Dairy Milk bars and seasonal products for UK and Irish markets.
The company cited changing consumer preferences, overcapacity in its European network, and efficiency needs. Production will consolidate into larger Birmingham and Poland facilities where Mondelez has invested in automation.
"This was an incredibly difficult decision," said a Mondelez spokesperson. "We must adapt our manufacturing footprint to remain competitive." Unions and politicians criticised the closure.
Industry experts note this reflects broader rationalisation. Similar Nestlé and Mars closures across Europe show companies seeking economies of scale while responding to declining volumes in mature markets.
Source: adapted from BBC News, The Irish Times, Food Manufacture (January 2025)

Extract C
The rise of functional and better-for-you confectionery
Consumer preferences are shifting towards products with functional benefits or health credentials. Research shows 42% of UK consumers seek reduced-sugar confectionery, while 38% want products fortified with vitamins or protein.
Major brands have launched lower-sugar variants using alternative sweeteners or reduced portions. Start-ups offer protein-enriched chocolate, sugar-free sweets, and vegan chocolate made with oat or coconut alternatives.
These products command 30-50% price premiums. However, taste remains the primary purchase driver, and reformulated products must deliver on flavour.
Mintel predicts functional and better-for-you products will reach 15-18% of the UK market by 2028, up from 8% in 2024. Success requires balancing health credentials with taste while managing costs.
Source: adapted from Mintel UK Confectionery Market Report 2024

Extract D
UK sugar tax extended to confectionery sector
The UK government announced plans to extend sugar taxation beyond soft drinks to include confectionery, targeting childhood obesity. The proposed levy, effective April 2027, will apply to chocolate, sugar confectionery, and sweet biscuits containing over 5g sugar per 100g.
Products will be categorised into two bands:
Band 1: 5-10g sugar per 100g - 18p levy per 100g
Band 2: Over 10g sugar per 100g - 24p levy per 100g
The government estimates the tax could raise £500m annually for children's health programmes. Public health organisations welcomed the move, citing links between sugar consumption and obesity, diabetes, and dental problems.
The confectionery industry strongly criticised the proposals. The Food and Drink Federation warns the levy will disproportionately impact smaller manufacturers lacking reformulation resources. Major manufacturers will likely pass costs to consumers through higher prices, potentially reducing demand and causing job losses.
Retailers are concerned about administrative burdens and sales impact. Trade unions fear job losses if the tax leads to factory closures or overseas production shifts.
Source: adapted from UK Government press release, The Guardian, Food Manufacture (December 2024)

Assess the impact on small independent confectionery businesses of one trend in consumer preferences discussed in Extract C.

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Marketing Mix & Strategy (Edexcel A Level Business): Exam Questions