Grade 11 Marketing Test
Marketing Research, Branding and Product Life Cycle B Answers
1.
Identify and explain primary and secondary sources of data that would help CMA to determine the strength of
their brand and their target market.
(Total 4 marks)
Primary data include
Secondary sources include
-
-
interviews / surveys with customers
interviews / surveys with suppliers
records
industry journals
external agencies
Identifies and explains primary and secondary data sources relevant to CMA.
[3 to 4 marks]
Identifies primary and/or secondary sources but may not explain their relevance to CMA.
[1 to 2 marks]
2.
(a)
Draw and label a product life cycle for Fit and Well from launch in 1980 to the mid 1990s.
(3 marks)
Sales
wth
gro
int
rod
uc
tio
n
maturity
1980
(a)
1995 time
Diagram and labelling is correct and consistent with the product life cycle for Fit and Well – note that sales
growth has declined – but this does not mean that sales have declined.
[3 marks]
Attempts to draw a suitable diagram, but labelling may not all be correct or inconsistent with Fit and Well.
[1 to 2 marks]
(b)
Explain three factors that could account for the decline in sales growth in the mid 1990s.
(3 marks)
Factors include:
• level of competition
• age structure of the population
• change in state of the economy
• change in tastes
The question requires the above to be explained – so, for example “level of competition” may have increased
because new entrants recognised that the market is profitable – or (for example) trade barriers have been reduced.
Explains three relevant factors in detail. Reference is made to Fit and Well.
[3 marks]
Explains some relevant factors, though the explanation may lack detail. Reference to Fit and Well may be
limited.
[1 to 2 marks]
N.B. A list gains a maximum of [1 mark] for a list of factors only.
(c)
Use the Boston Consulting Group Matrix to analyse the existing product range. Ensure to state what the company
should do with each product given its classification under the BCG Matrix.
(4 marks)
The company should consider abandoning any products that fit into the dog category (Yogi Milk) and refocus
energy on potential rising stars (Fresh and Fruity) – or protecting cash cows (Fit and Well). Problem child
(Grubble Tea) may need resources to fend off competitors.
A suitable application of product portfolio techniques is used to identify the growth strategies available and to
analyse the existing product range. The analysis is detailed and relevant.
[4 marks]
Uses product portfolio techniques to identify growth strategies available to Fit and Well. The product range is
also analysed, though the analysis may be limited. At the lower end of the range product portfolio techniques
may be limited.
[2 to 3 marks]
A limited and general response.
[1 mark]
3.
The General Manager is pessimistic about the possibility of extending the life of the existing detergent. He
therefore wants to introduce a new product. Assess the advantages and disadvantages of introducing the new
product under the same brand of the dish detergent (family branding), and contrast with the advantages and
disadvantages of using a totally new brand (individual branding).
(6 marks)
Family branding:
Pros:
• If brand is successful it might guarantee the success of the new product.
• It is cheaper.
• It increases the overall prestige of the firm (more products in the market with one same brand).
Cons:
• If the new product is not successful the original brand might suffer(pitchfork effect).
• The life of one product is tied to the old one and therefore to its life cycle.
Individual branding:
Pros:
• Product is on its own and if successful can increase sales a lot more than as family branding.
• Can conquer another segment of the market.
Cons:
• It is difficult, costly to come up with new and successful brands.
• Individual brands are expensive.
for a complete and accurate comparison.
[5 to 6 marks]
for a partial answer that does not consider both pros and cons of both types of branding.
[3 to 4 marks]
for a superficial distinction of the two types of branding.
[2 to 1 marks]
[Total 20 marks]