Analyse two benefits to SCC of developing new clothing products made from recycled materials.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [K1] Meaning of new product research and development – changing materials and designs in response to customer trends in demand.
2. [K] Generic advantages of developing new products – keeping up with consumer trends in order to remain competitive.
3. [APP] Recycled textile materials are made from previously 'thrown away' garments, which is a more sustainable use of resources and less waste.
4. [APP] Environmental benefits of use of recycled textile materials, will be favourable for SCC's reputation.
5. [APP] Marketing benefits of use of recycled materials, appealing to 'environmentally aware' consumers, who may be willing to pay higher prices, not only in developed countries but also in Country Z.
6. [APP] Sunil is worried about some of the possibly unethical employment practices used by his current suppliers of non-recycled cloth.
7. [APP] Recycled textile materials are more expensive by at least 50%, but prices can be set higher.
8. [APP] Use of recycled materials as a USP for SCC.
9. [AN] Development of application points, in terms of the likely benefits to SCC of the use of recycled materials.
10. [AN] It is possible that demand for clothing made from recycled materials may be more price inelastic, so it will be possible to sell this range at higher prices leading to higher revenue and profit.
11. [AN] Environmentally aware consumers may become loyal and help in building the brand, assuming designs are right.
12. [AN] SCC's product portfolio and target market will widen, spreading risk by moving away from reliance on mass produced clothing. This may mean less vulnerability to changes in demand for fast fashion, maintaining sales.
13. [AN] Recycled textile materials are a relatively new development, so may make SCC more competitive, due to 'first mover advantage'.
14. [AN] Use of more sustainable resources may lead to more motivated workforce, could lead to increased productivity.
15. Accept all valid responses.