AQA BUSS2 Managing a Business
Marketing and the competitive environment – 2.16 Using the marketing mix: promotion
Assessment 2.16 Using the marketing mix: promotion
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
elements of the promotional mix
influences on the choice of promotional mix
Chocolate awareness
With an established on-line business Charlotte and Georgia are conscious of the benefits the Internet can
play in promoting the Choccy Delights shop they are planning to open in Bath. Choccy Delights will offer
customers an extensive range of chocolate not available anywhere else in the local area.
Charlotte and Georgia are aware that Cadbury spent £7.2 million, around 2% of their Net Profit, on
advertising in 2007. However, Choccy Delight has a limited budget for their promotional mix so is looking
for word of mouth to be its main form of marketing. Extensive market research enabled it to gather some
quantitative data including the following estimates for the retail outlet:
Spend per customer visit (average)
Number of customer visits in a year
Annual total costs
£20.00
35 000
£675 000
The business consultant had been very helpful in outlining the range of promotional activities available to
Charlotte and Georgia, pointing out that it was not just advertising. With start-up costs estimated at
£45 000, their marketing budget would be limited so they had to be creative with their promotional mix.
Public relations, including a launch party, might be cost effective. They had to aim any promotional activity
at their target market of chocoholics who were prepared to pay premium prices for high quality chocolate
with a difference.
Charlotte is certain the secret to success of Choccy Delights’ promotional mix is to get people to taste their
product, something they cannot do with their on-line business. Whenever she had entered a Hotel
Chocolat shop they seemed to be handing out small taster samples. If it worked for the competition it
should work for them. Once customers had entered the store, Georgia felt that merchandising could be
used to generate impulse purchases. By having sales promotions, where potential customers could taste
the chocolates and buy at a discount, she might be able to build up a customer base with brand loyalty.
1
Calculate the amount Choccy Delights would spend on advertising if it spent the same percentage
of their retail outlet estimated net profit as Cadbury did in 2007.
(5 marks)
2
Explain the aims of promotion in the context of Choccy Delights.
3
Analyse two factors that will influence Choccy Delights’ choice of promotional mix.
(8 marks)
4
Charlotte is certain the secret to the success of Choccy Delights’ promotional mix is to have sales
promotions where people can taste their products. Do you agree? Justify your view.
(13 marks)
(Total marks 32)
www.time2resources.co.uk
(6 marks)