WW is a new business set up by Puja. WW will operate in the primary sector. It will take water from a local lake and process it into drinking water. The details of the product and market are outlined in Fig. 2. [Figure 2: Product and market details for WW] WW product details • water will only be sold in country X • it will be sold in bottles targeted at a niche market of consumers who purchase bottled water and regularly take part in sport • no harmful chemicals will be used in the production process • flow production will be used • bottles will be distributed through wholesalers to retailers Market details for country X • the population is 60 million • 80% of the population purchase bottles of water • 15% of the people who purchase bottles of water regularly take part in sport • 15 brands of bottled water are already sold using mass marketing • no brands of water sold in country X currently target consumers who regularly take part in sport Puja needs to decide on suitable promotion methods for the launch of WW's bottled water. She must also recruit a sales manager. She has designed a brief person specification (Fig. 3). [Figure 3: Person specification for the role of sales manager] • must have the confidence to negotiate with retail business customers • must be able to work on his/her own and lead a team of salespeople • must be willing to develop his/her skills • must have good time-management • must be a good communicator

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [1] (a)(i) One mark for showing understanding that it is about extraction e.g. Extraction, mining, fishing, farming/agriculture.
2. [1] (a)(i) One mark for showing understating that it is to do with raw materials e.g. Raw materials, natural resources etc.
3. [3] (a)(ii) Flow production – the continuous movement of products through the production process. When one task is finished the next task starts.
4. [1] (a)(ii) Use of an assembly line, continuous, produced in stages, one after another.
5. [1] (a)(ii) Allows greater/faster production/high volume/mass – i.e. can produce more.
6. [1] (a)(ii) Example or some other way of showing good understanding, for example (high) use of machinery/capital, homogeneous (exactly the same) products, allows greater economies of scale.
7. [4] (b)(i) Correct answer, with or without working or million (m).
8. [2] (b)(i) Calculation of one correct figure (can be OFR) e.g. 80% of 60m = 48m.
9. [1] (b)(i) Formula* or identification of correct figures.
10. [2] (b)(ii) Less competition – this needs to have some reference to the target market to become application.
11. [2] (b)(ii) More brand loyalty.
12. [2] (b)(ii) Cheaper market research.
13. [2] (b)(ii) Higher potential profit margins.
14. [2] (b)(ii) Less risk.
15. [2] (b)(ii) Less initial investment.
16. [2] (b)(ii) Lower cost for marketing/promotion.
17. [2] (b)(ii) Higher price can be charged.
18. [8] (c) Self-awareness i.e. Emotional self-awareness; accurate self-assessment; self-confidence.
19. [8] (c) Self management – Self-control, trustworthiness, conscientiousness, adaptability, focus on achievement and initiative.
20. [8] (c) Social awareness – Empathy, understanding of the organisation of the business, focus on customer service.
21. [8] (c) Social skills/management – Influencing others, leadership, developing others, communication skills, conflict management, teamworking and collaboration.
22. [11] (d) Promotional methods could include: Television, Radio, Cinema, Sponsorship, Newspapers, Sales promotions, Packaging, Direct marketing, Digital marketing, Email, Trade fairs, Merchandising, Telesales, Personal selling.
23. [11] (d) Analysis and evaluation should focus on the contextual elements, including: WW only sold in country X – suggests a national method is more suitable.
24. [11] (d) WW is targeted at a niche market – mass marketing method may not be appropriate and may be too expensive.
25. [11] (d) WW is a new business – no idea of the promotional budget. Cheaper/below the line methods are likely to be more suitable.
26. [11] (d) WW seems to have an ethical stance (no harmful chemical) so certain no-environmental methods might be unsuitable (i.e. newspaper).
27. [11] (d) 7.2m market – although niche this is still a sizable market to reach – might suggest mass marketing methods are more suitable.
28. [11] (d) WW selling through wholesalers and retailers, so industrial marketing methods (i.e. direct sales etc.) will be needed as well as any consumer marketing. To what extent will retailers and wholesalers promote the product for WW?
29. [11] (d) No other competitors, so WW might be able to start a 'slow' promotional campaign - less urgency at launch.
30. [11] (d) New sales manager suggests the importance of direct sales.