Direct Marketing and Sales Promotion Examination December 2011
CAM Diploma
122 – Direct Marketing and Sales Promotion
Time:
09.30 – 11.30
Date:
6th December 2011
Two Hours Duration
This examination is in THREE sections.
PART A – Is compulsory and worth 50% of the total marks
PART B – Has TWO questions; select ONE. The answer will be worth 25%
of the total marks
PART C – Has TWO questions; select ONE. The answer will be worth 25%
of the total marks
You are required to give your answers in the answer book provided. DO NOT
repeat the question in your answer, but show clearly the number of the
questions attempted on the appropriate pages of the answer book. Please
start a new page when starting each question.
Rough work and notes must be written in the answer book or on
supplementary sheets and must be clearly identified.
© CAM Foundation 2011
Direct Marketing and Sales Promotion Examination December 2011
DIRECT MARKETING AND SALES PROMOTION
PART A – Compulsory
Feel Good Drinks
Soft drinks market returns to overall growth
The UK soft drinks market grew overall by 1.7% in 2009, according to figures in the
British Soft Drinks Association’s 2010 UK Soft Drinks Report. The two previous years had
seen slight falls, so this was a welcome return to growth.
Total soft drinks consumption was 14,140 million litres, with a retail value of £13.2 billion.
Bottled water consumption rose by 1.7% to 2,090 million litres, or 33.9 litres per
person. Carbonates built on their growth in 2008, with further growth in 2009 of 2.2% to
6,065 million litres, or 98.3 litres per person.
Consumption of drinks that need diluting grew by 3.1% to 3,350 million litres, or 54.3 litres
per person. Fruit juices and smoothies, on the other hand, saw a volume decline of 3.1%,
while still and juice drinks rose by 0.7%.
Sports and energy drinks continued to grow in popularity, with consumption up 5%.
Commenting on the findings of the report, BSDA Director General Jill Ardagh said:
“Our industry’s success is based on its plans for the future, investing in new products,
new ways of working and in the skills of its people. In more ways than one, the soft drinks
industry plays a role in the life of the nation.”
Feel Good Drinks
Feel Good Drinks was founded in 2001 by David Wallwork, Chris Wright and Steve
Cooper. They had previously worked at Coca Cola and using their knowledge of the soft
drinks market, highlighted a potential gap in the market for a health-orientated soft drink.
They wanted to manufacture drinks that were healthy, had interesting flavour
combinations and created a brand that embodied happiness, fun and not taking life too
seriously.
After securing over £500,000 investment funding, the business was launched and now
commands a turnover of £3 million, with drinks sold in over 6,500 outlets in the UK. Feel
Good Drinks make fruity flavours including Orange + Mango, Apple + Blueberry and
Cranberry + Lime. Every Feel Good Drink is produced with 100% natural ingredients and
contains no artificial chemicals or added sugar. The company’s product range has
recently expanded from three to eight flavoured drinks.
Target Audience
The target audience is 16-34-year-olds, who are happy to pay a little bit more for a
healthy, tasty soft drink that is not full of additives. It is a sociable bunch, that likes to work
hard but always finds time to enjoy going to festivals, spending weekends at the beach,
and generally meeting up with its wide circle of friends.
CAM Diploma
The Challenge
The main challenge is to create awareness, as currently brand recall is below market
average. The founders are confident that once a person has tried a Feel Good Drink, they
will buy the product again, due to its unique flavours and light-hearted brand personality.
Adapted from various websites:
www.britishsoftdrinks.com/default.aspx?page=878
www.startups.co.uk/UtilityPages/Print.aspx?nodeId=6678842910769537911
http://awards.ycnonline.com/briefs/view/feel-good-drinks-0910/.
Direct Marketing and Sales Promotion Examination December 2011
PART A – Compulsory
It is recommended that you spend approximately ONE hour on Part A.
Question One
The direct marketing agency that you work for has recently won a pitch to plan and
implement the next direct marketing campaign for Feel Good Drinks that communicates
two simple things: the Feel Good Drinks brand name and the claim that the drinks are full
of natural, tasty fruitiness. The objective of the campaign is to increase awareness of the
brand and its benefits in order to recruit new distributors and increase consumer sales.
Write a report that:
a.
evaluates the marketing environment for Feel Good Drinks
(10 marks)
b.
outlines your proposals for a direct marketing plan that will increase awareness
and communicate the key benefits of Feel Good Drinks
(25 marks)
c.
recommends THREE types of sales promotion that could be used to recruit new
distributors and explains how the sales promotions will be evaluated.
(15 marks)
(Total 50 marks)
CAM Diploma
PART B – SALES PROMOTION
It is recommended that you spend approximately HALF AN HOUR on Part B.
Answer EITHER Question Two OR Question Three
Question Two
Effective film merchandising can add between US$50-200 million to the overall profits
that a film makes, depending on how suitable the film is for merchandising opportunities.
For a film of your choice, prepare a discussion paper that addresses the following points:
a.
suggest with justification, THREE types of film merchandising that are suitable for the
film’s target audience
(15 marks)
b.
discuss some of the potential problems associated with film merchandising.
(10 marks)
(Total 25 marks)
Question Three
You have recently been appointed Marketing Communications Manager for a UK-based
cereal bar manufacturer, which is considering expansion into another region of the world.
You have been asked to prepare a discussion paper to address the following points:
a. describe the factors you would need to consider when planning your sales promotion
activity
(15 marks)
b. explain how you would manage the sales promotion activity for either South America
or the Middle East.
(10 marks)
(Total 25 marks)
(continued overleaf)
Direct Marketing and Sales Promotion Examination December 2011
PART C – DIRECT MARKETING
It is recommended that you spend approximately HALF AN HOUR on Part C.
Answer EITHER Question Four OR Question Five
Question Four
Technology such as multi-media messaging (MMS) and internet viral campaigns is being
increasingly used to reach more resistant segments such as the 16-24-year-old group.
Produce a discussion paper for your manager that:
a. evaluates the advantages and disadvantages of these techniques
(10 marks)
b. explains with THREE examples how these techniques can employ creativity and
thus be more successful in relation to communicating with this segment.
(15 marks)
(Total 25 marks)
Question Five
Direct marketing depends on customer information for its effectiveness. Produce an article
for the Marketing Week magazine that:
a. distinguishes between the types of information that B2C and B2B organisations
may store on their customer databases
(15 marks)
b. explains the factors that have contributed to the growth in database marketing.
(10 marks)
(Total 25 marks)
CAM Diploma
Direct Marketing and Sales Promotion Examination December 2011
Moor Hall
Cookham
Maidenhead
Berkshire SL6 9QH, UK
Telephone: 01628 427120
Facsimile: 01628 427399
Website: www.cim.co.uk