PD is a mass market fizzy drinks manufacturer in country Z. The fizzy drinks market in country Z is dominated by a few well-known brands. The total market value is $5.3bn and the PD brand has a 17% share of this market. Pablo was recruited to be the Marketing Director of PD in 2022. He launched a new promotional campaign based on trending music on social media. He decided to use social media influencers to focus on this market. Online feedback of the campaign was poor. Many of PD's customers did not want to be associated with trending music. National news highlighted the negative feedback and PD's sales volume decreased by 20% within a week and continued falling. This led to excess inventory in PD's warehouses. The bad publicity also caused a drop in PD's share price and a negative impact on cash flow. Fig. 2.1 shows feedback from a recent questionnaire where previous PD customers were asked what they thought about the promotional campaign. [Figure 2.1] Pablo has called an emergency meeting of PD's marketing managers to repair the damage done to the PD brand from this recent promotional campaign.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [1] job advertisements
2. [1] employment agencies
3. [1] online recruitment
4. [1] internal recruitment
5. [1] external recruitment
6. [1] job description
7. [1] person specification
8. [1] headhunting
9. [1] advertising media for recruitment (e.g. newspapers, websites, word of mouth, internal noticeboard, intranet)
10. [1] The sum of cash payments into a business less the sum of cash payments out of a business
11. [1] Inflows and outflows / Into and out of the business / Receipts and payments
12. [1] Money / notes / coins / funds / finance
13. [2] (Application to PD context, e.g.) Measures the business's ability to pay debts and maintain solvency.
14. [2] (Application to PD context, e.g.) Refers to the money flowing into PD from customers and out to suppliers, lenders, or for bills and staff wages.
15. [2] (Application to PD context, e.g.) A negative impact on PD's cash flow, as mentioned in the case, means a reduction in its ability to meet short-term financial commitments.
16. [1] (Positive feedback / Total feedback) × 100 (formula only)
17. [1] (80 + 40) / (40 + 80 + 120 + 160 + 400) OR (80 + 40) / 800 (use of correct figures)
18. [1] 15 (%) (correct answer, % not necessary but correct rounding applies)
19. [1] Human error
20. [1] Lack of data standards
21. [1] Incomplete / outdated data
22. [1] Poor questionnaire design / poorly written questions / question construction
23. [1] Incorrect sampling
24. [1] Data collection issues
25. [1] Low response rates
26. [2] (Application to PD context, e.g.) An incorrect sample size of 800 customers, given PD operates in a mass market, may not be representative of all previous customers.
27. [2] (Application to PD context, e.g.) The questionnaire was only completed by 'previous PD customers', which may not represent the opinions of the wider mass market or potential new customers.
28. [2] (Application to PD context, e.g.) If the data is outdated, it may not reflect current opinions after the campaign's negative impact on sales volume and cash flow.
29. [2] (Application to PD context, e.g.) Low response rates could lead to biased data, affecting decisions to repair the damage to PD's brand.
30. [1] Opportunity cost of holding stock
31. [1] Impact on working capital
32. [1] Labour cost
33. [1] Storage costs
34. [1] Risk of wastage / damage
35. [1] Depreciation
36. [1] Insurance
37. [2] (Application to PD context, e.g.) PD has 'excess inventory in warehouses' which incurs costs.
38. [2] (Application to PD context, e.g.) Given PD's mass market fizzy drinks, unsold inventory could quickly become obsolete or pass its sell-by date.
39. [4] (Analysis of opportunity cost, e.g.) The opportunity cost of holding excess inventory in PD's warehouses means the space could have been used for more productive activities, potentially reducing output for popular drinks and lowering revenue.
40. [4] (Analysis of impact on working capital, e.g.) Holding excess inventory ties up PD's cash, impacting its working capital and ability to pay suppliers or cover operational expenses, especially given the 'negative impact on cash flow' mentioned.
41. [4] (Analysis of labour cost, e.g.) Increased labour costs for managing and moving excess stock in warehouses reduce PD's profits and could lead to lower shareholder dividends.
42. [4] (Analysis of storage costs, e.g.) Higher storage costs for the excess inventory in PD's warehouses reduce profit margins, which could contribute to a further drop in PD's share price.
43. [4] (Analysis of risk of wastage/damage, e.g.) Excess inventory of fizzy drinks increases the risk of wastage or damage, requiring PD to spend time and resources disposing of unsellable products, leading to inefficiency.
44. [4] (Analysis of depreciation, e.g.) The fizzy drinks might depreciate in value if new trends or products emerge, reducing PD's profits and its capacity to reinvest for future growth.
45. [4] (Analysis of insurance, e.g.) Increased insurance costs for the excess inventory in warehouses add to PD's expenses, further reducing working capital and profitability, especially when sales volume has decreased.
46. [2] Creating a distinct identity / image; Brand values
47. [2] A company's name and logo, visual design, slogan, jingle; Making consumers feel good about supporting a company and establishing an emotional connection.
48. [2] Differentiates from competitors; Influence purchasing decisions
49. [2] Customers identify with business / brand; Brand personality; Build trust / relationships
50. [2] (Application to PD context, e.g.) PD is a mass market fizzy drinks manufacturer in a market dominated by well-known brands.
51. [2] (Application to PD context, e.g.) PD's promotional campaign based on trending music received poor online feedback, negatively impacting its brand.
52. [2] (Application to PD context, e.g.) Sales volume decreased by 20% and share price dropped, highlighting damage to PD's brand.
53. [2] (Application to PD context, e.g.) Pablo needs to repair the damaged PD brand from the recent promotional campaign.
54. [2] (Analysis, e.g.) A strong brand creates a distinct identity for PD, helping it maintain its customer base and encouraging repeat sales/loyalty, which is crucial for long-term profitability in a competitive mass market.
55. [2] (Analysis, e.g.) Effective branding helps PD differentiate its fizzy drinks from competitors, attracting new customers and potentially increasing its 17% market share.
56. [2] (Analysis, e.g.) A positive brand personality and values can influence purchasing decisions, leading to increased revenue and profits for PD.
57. [2] (Analysis, e.g.) Building trust and strong customer relationships through branding contributes to an increased reputation and market share for PD, essential for recovery from recent bad publicity.
58. [2] (Analysis, e.g.) Customers identify with the brand, fostering loyalty that makes them less likely to switch to competitors, even if quality perception temporarily wavers.
59. [6] (Evaluation, e.g.) The importance of branding for PD's future success is high, especially now, as its brand has been damaged, and it needs to differentiate itself in a market dominated by well-known brands.
60. [6] (Evaluation, e.g.) The success of branding is also influenced by other elements of the marketing mix, such as product quality (taste), price, and place (distribution), especially given PD's mass market.
61. [6] (Evaluation, e.g.) The taste of the drink might be more important than branding; if customers dislike the taste, they won't buy it, regardless of attractive branding.
62. [6] (Evaluation, e.g.) External factors like new competitors, changing social trends, or economic conditions will also significantly impact PD's future brand image and overall success.
63. [6] (Evaluation, e.g.) While crucial for recovery, branding alone cannot guarantee future success; effective financial management and responding to competitive pressures are equally vital.
64. [6] (Evaluation, e.g.) A strong, positive brand can command premium prices and build customer loyalty, which is critical for long-term survival and growth, particularly after a damaging campaign.