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521 – Assessin
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© The Charte
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eting 2011
Assessing the Marketing Environment Mark Scheme March 2011
ASSESSING THE MARKETING ENVIRONMENT
Case Study: Cadbury
Task One
Define the following terms and briefly explain their significance to Cadbury:




Brand leaders
Fragmented market
Barriers to entry
Emerging markets.
(8 marks)
Marking Scheme
One mark for each term defined and one mark for significance explained in context of
Cadbury. The marks do not necessitate detailed responses for each term however a
significant lack of depth or detail across terms and explanations may result in less than full
marks.
Key answer points could include:
Brand leaders: brands holding majority share in specific product sector. Reference to Dairy
Milk, Bourneville Cocoa & Milk Tray.
Fragmented market: market structure within industries, many smaller producers. Global
confectionery 1/3 major players and 2/3 fragmented.
Barriers to entry: Significant resources or market dominance making it hard for others to
break into the market. Reference to difficulty of challenging the big three, most SMEs lack
resources to hit national or global markets.
Emerging markets: Markets not traditionally part of the developed economies (UK, USA),
experiencing significant rates of growth. For Cadbury, Brazil /S. America and China are
mentioned.
A grade candidates will have given at least three clear definitions and related these well to
the case.
B grade will have given at least three clear definitions with some strong context to Cadbury.
C grade will have given at least two clear definitions with some strong context to Cadbury.
D/E grades will have two or fewer accurate definitions or context may be limited.
Professional Certificate in Marketing
Task Two
Describe how Cadbury’s history and heritage may have influenced its business activities prior
to the Kraft takeover.
(8 marks)
Marking Scheme
Four marks for describing the history and heritage of the organisation and four marks for
describing how this has influenced business activities.
Key answer points could include:
Quaker values – personal values of founders, resulting corporate culture, high standards of
staff welfare and staff retention/loyalty, encouraging staff contribution to innovation
Iconic brands – personal links with signature brand and significance of iconic brands
Quality – evidence of a strong focus on achieving high standards
Innovation – leading trends in manufacture and distribution
Community relations – support for soldiers in wartime, loyalty to local labour markets, opening
of Cadbury World
Sustainability – commitment to Fairtrade
Aims – to be the world’s largest, various acquisitions
There is no prerequisite here for the number of issues to mention but full marks will require a
reasonable range of factors. More important is the candidates’ ability to describe the history
and heritage factors and clearly relate how these have influenced business activities such as
marketing, human resources, manufacture, innovation, ownership/control etc.
A grade candidates will have clearly described a good range of history and heritage issues
and described in detail how these influence business activities.
B grade will have clearly described an adequate range of history and heritage issues and
described clearly how these influence business activities.
C grade will have described an adequate range of history and heritage issues and described
to a limited degree how these influence business activities.
D/E grades may have described a limited range of factors or their description of how these
influence business activities may be very limited or absent.
Assessing the Marketing Environment Mark Scheme March 2011
Task Three
Describe TWO competitive advantages that a large multinational might have in this sector
compared with a Small or Medium sized Enterprise (SME).
(8 marks)
Marking Scheme
Two marks for each competitive advantage described and two marks for with clear links to
business size and/or multinational operation as compared with SME operations.
Key answer points could include:
Large multinational
SME
Access to
capital
from reserves, from
shareholders or from
international financiers
Restricted to private shareholders,
private finance or personal assets
Economies of
Scale
Significant economies of scale
through size of operations
Challenges of managing cost base
Distribution
networks
Global or national agreements,
significant power as a key
supplier
Dependent on local/independent
distribution, vulnerable to changes in
local markets
Market
intelligence
Good knowledge of many
markets
Less formal data
Product
development
Brand
Well resourced
More innovation
High brand recognition across
multiple markets and segments
Limited recognition in restricted markets
A grade candidates will have identified and described in detail two relevant competitive
advantages with a comparison to SMEs.
B grade will have identified and describe two relevant competitive advantages with a
comparison to SMEs.
C grade will have identified and describe at least one relevant competitive advantage (or
described two in limited detail) and given a satisfactory comparison to SMEs.
D/E grades may have only one competitive advantage or descriptions will be very limited or
poorly related to the competitive environment.
Professional Certificate in Marketing
Task Four
Explain the concept of consumerism and identify how this has influenced Cadbury’s
marketing.
(8 marks)
Marking Scheme
Four marks for explanation of consumerism and four marks for identifying how this influences
Cadbury’s marketing.
Key answer points could include:
Consumerism – high levels and growing levels of consumption in the developed and
emerging economies of the world. How, what and why people spend. Influence of social
trends.
Individual consumption levels, customers willingness to buy more; greater quantities, more
often - influencing products and packaging
General wealth – influencing spend and pricing
High standards of living, indulgence – influencing promotional messages
Competition for growing markets – need for impactful B2B marketing
Sustainable cocoa production, customer awareness of – influencing the mix
Globalised markets – generic global products
New markets – product development to suit tastes and environment, research to identify
market potential.
This is a complex concept and candidates will be rewarded for appropriate reference to any
of these points. Innovative and justified comments relating to broad consumer trends in this
market will be rewarded. Marketing references can include research/intelligence, marketing
strategy, marketing mix and elements of the mix.
A grade candidates will have given a clear and detailed explanation of the concept and
identified in detail and with good justification how this influences a range of marketing
activities.
B grade will have given a clear explanation of the concept well and identified in some detail
and with some justification how this influences marketing.
C grade will have given an adequate explanation of the concept and identified in some detail
and how this influences marketing.
D/E grades may have poorly explained the concept or will have been unable to relate the
concept clearly to its impact on marketing.
Assessing the Marketing Environment Mark Scheme March 2011
Task Five
Identify TWO natural environmental challenges facing Cadbury and recommend TWO key
actions for future environmental sustainability.
(8 marks)
Marking Scheme
Two marks for each natural environmental challenge and two marks for each
recommendation.
The focus is clearly on the natural environment so marks cannot be awarded for issues
beyond this. Challenges and actions need not link. Key answer point can include:
Challenges:
Sustainability of supply and impact on natural environment in producer countries
Environmental impact of production and distribution
Availability of clean energy
Impact of excessive packaging
Actions:
Build on Fairtrade, extending impact of relationships on supplier communities
Reduce packaging across the range
Use of environmentally friendly packaging
Local production to minimise transport to markets
Monitoring environmental impact and establishing clear targets for improvement
A grade candidates will have covered all four elements of the task with a good level of detail
on challenges and appropriate justification for recommendations.
B grade will have covered at least three elements of the task with a good level of detail on
challenges and clear recommendations.
C grade will have covered at least two elements of the task with a good level of detail on
challenges and clear recommendations, or more elements with limited detail.
D/E grades may have covered two or fewer of the elements of the task or the level of detail
given will be very limited.
Professional Certificate in Marketing
PART B – Answer All Tasks (60%)
Role
You are a Marketing Assistant for Cadbury, following its merger with Kraft, and have been
asked by your Manager to prepare a short report for circulation to the Marketing Team.
Based on your knowledge of this unit and your analyses of the Cadbury case study material
previously provided, address the following tasks:
Task Six
a. Describe the types of information that Cadbury’s should investigate when carrying out a
detailed competitor analysis.
10 marks
b. Analyse Cadbury’s strengths and weaknesses, post-takeover, in relation to opportunities
in its core markets.
10 marks
Marking Scheme:
a. Four marks for describing a range of types of information and five marks for explaining
their value in relation to evaluating competitors.
b. Five marks appropriate identification of strengths, weaknesses and opportunities and four
marks for clearly analysing the links between these.
Two marks across task for format and presentation (report style introduction, use of
headings/bullets, clear layout and concise).
a. Key answer points could include:
competitor identification
competitor product ranges, market structures, customer profile, customer satisfaction
competitor strengths and weaknesses
competitor strategies and key success factors
Candidates may interpret this as the sources of information and therefore trade directories,
trade press and annual reports can also gain marks.
b. A clear structure will help to cover the requirements of this task, either focusing on
strengths and weaknesses and relating to opportunities or focusing on opportunities and
relating to S&W. Candidates should be able to draw on their analysis to identify a range of
opportunities, strengths and weaknesses but good marks are dependent on being able to
analyse these together.
A grade candidates will have identified a good range of types of information and related these
clearly and in detail to analysing competitors. They will have analysed in detail a good range
of opportunities, strengths and weaknesses with clear links and justification. Format and
presentation will be good.
B grade will have identified a good range of types of information and related these clearly to
analysing competitors. They will have analysed a good range of opportunities, strengths and
weaknesses with clear links. Format and presentation will be good.
Assessing the Marketing Environment Mark Scheme March 2011
C grade will have identified an adequate range of types of information and related these
adequately to analysing competitors. They will have identified a range of opportunities,
strengths and weaknesses with adequate links and analysis. Format and presentation will be
fair.
D/E grades may have identified a limited range of types of information or the information will
be poorly related to competitors. They may have identified a reasonable range of
opportunities, strengths and weaknesses but the analysis may be absent or weak. Format
and presentation may be poor.
Professional Certificate in Marketing
Task Seven
a. Identify Cadbury’s stakeholders and briefly analyse their power and interest.
12 marks
b. Identify the relationship that Cadbury has with TWO of the stakeholder groups and
evaluate how this relationship may influence future success.
8 marks
Marking Scheme:
a. One mark for demonstrating clear understanding of stakeholders. Two marks for each
stakeholder identified (one mark) and analysed for power and interest (one mark) to a
maximum of ten marks.
b. One mark for identification of two stakeholder groups, three marks for description and
evaluation of relationship with each stakeholder.
Two marks across the task for format and presentation (report style introduction, use of
headings/bullets, clear layout and concise).
a. The mark break down noted above allows maximum marks to be achieved for identifying
five stakeholder groups. However, markers can reward candidates that have identified more
than five groups with briefer analysis of each one. This task lends itself to a diagram/matrix
showing power and interest. Mendelow isn’t in the syllabus so marks cannot be rewarded for
specific reference to this model. Full marks can be awarded where candidates refer to both
power and interest of the stakeholder group and that the analysis is clear and justified. There
is no prerequisite list of stakeholders that should be included and any relevant stakeholders
are valid.
Stakeholders can include: consumers, business customers, suppliers, government, pressure
groups, shareholders, staff/management, directors, media etc.
b. This should flow well from the content of part a. and candidates should be able to describe
the relationships with particular reference to the future success.
Key answer points could include:
Reference to status of stakeholder (internal, connected, external)
Evaluation of relationship – strengths, weaknesses, challenges, problems
Justification re future success – related to growth, sales, financial performance, reputation,
staff moral etc.
A grade candidates will have identified and analysed in some detail at least four stakeholder
groups in terms of power and interest. They will have given an excellent evaluation of the
relationship of two stakeholder groups, clearly related to future success. Format and
presentation will be good.
B grade will have identified and analysed briefly at least four stakeholder groups in terms of
power and interest. They will have given a good evaluation of the relationship of two
stakeholder groups, clearly related to future success. Format and presentation will be good.
C grade will have identified and analysed briefly at least three stakeholder groups in terms of
power and interest. They will have given an adequate evaluation of the relationship of two
stakeholder groups, with some reference to future success. Format and presentation will be
adequate.
Assessing the Marketing Environment Mark Scheme March 2011
D/E grades may have identified three or fewer stakeholder groups or the analysis of their
power and interest will be limited or absent. The evaluation of the relationships will be limited
or poorly related to future success.
Professional Certificate in Marketing
Task Eight
a. Describe the changing technological environment and analyse the impact that these
changes may have on Cadbury’s marketing.
10 marks
b. Describe the methods that Cadbury could use to undertake an analysis of environmental
trends in the UK market.
10 marks
Marking Scheme:
a. Two marks for describing the technological environment, two marks for describing the
changing nature of this and five marks for the analysis of the impact of these on marketing.
b. Three marks for describing a range of relevant methods and six marks for relating that
description clearly to analysing environmental trends in the UK.
a. Reference to the speed of change of the technological environment with good illustrative
examples will serve as a good introduction to this task eg internet, technological
convergence, management of data, technology in finance, and in manufacture.
Key impacts could include:
Advances in production methodology influencing pricing and new product development
Advances in data gathering and information management including research
Opportunities in new media and social media for promotion
Opportunities in CRM for B2B
b. This task has scope for a wide range of responses all of which are valid and should be
rewarded with marks. The elements noted in the syllabus include:
Environmental audits
Primary and secondary
Qualitative/quantitative
Forecasting techniques
Trend impact analysis
Scenario building
Delphi method
Relevant sources for any of the above are also valid. Candidates will need to demonstrate
that they understand the methods they refer to and that they can relate these clearly to
environment trends in the UK. The scope of trends is also wide and could include macro and
micro trends eg PESTEL factors, competitors, market size and structure, supply and
distribution.
A grade candidates will have given a detailed description of the technological environment
and the rate of change. They will have given an excellent analysis of the impact of this on
specific aspects of Cadbury’s marketing. The methods for analysis of trends will be detailed,
broad ranging and well linked to the UK market.
B grade will have given a good description of the technological environment and the rate of
change. They will have given a good analysis of the impact of this on Cadbury’s marketing.
Assessing the Marketing Environment Mark Scheme March 2011
The methods for analysis of trends will be good with more than one method described and
each method linked to the UK market.
C grade will have given a fair description of the technological environment with some
reference to its changing nature. They will have given an adequate analysis of the impact of
this on Cadbury’s marketing. The methods for analysis of trends will be adequate with at least
one method described and linked to the UK market.
D/E grades may have given an inadequate description of the technological environment with
little reference to change. The analyses of impacts may be lacking in clarity or detail. The
methods for analysis of trends will be limited with perhaps just one method described or only
limited reference to UK trends.