The products shown in Fig. 3 are sold in the Mero chain of supermarkets. MERO Caster Sugar 1 kg CRU & BU Baked Beans in tomato sauce KHAN COOKING OIL Fig. 3 Use Fig. 3 to help you answer the following questions.
- (a)Identify one type of packaging shown in Fig. 3.[1]
- (b)(i)Why does Mero sell own brand products?[2]
- (b)(ii)All the products in Fig. 3 are branded. Explain the importance of branding goods.[4]
- (c)Khan cooking oil is bar-coded. Why are products bar-coded?[3]
- (d)Mero uses self-service in all its supermarkets. Explain the advantages of self-service to Mero's customers.[4]
- (e)Mero is planning a new advertising campaign. Discuss whether or not it is better to advertise on television rather than to use national newspapers or billboards. Give reasons for your answer.[6]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.
- [1] One mark for can/tin/bottle/plastic/bag/paper
- [2] Any two points × 1 mark each or one well developed point × 2 marks
- so that it offers a cheaper range of goods (1)
- so that it promotes/creates its own brand name (1)
- can achieve economies of scale (1) and so offer cheaper prices (1)
- can offer an alternative to individually branded products (1)
- to increase sales and profits (1) by increased market share (1)
- Any other relevant point.
- [4] Any four points × 1 mark each or two well explained points × 2 marks
- distinguishes it from other products/manufacturers (1)
- enables products to be advertised using the brand (1)
- may enable a manufacturer to offer a range of goods under the same label (1)
- makes goods recognisable to consumers (1) and so aids self-service (1)
- helps to create brand image (1) - guarantee of a particular quality (1)
- helps to attract customers to purchase (1)
- develops brand loyalty leading to increased sales (1)
- can be sold at higher price (1)
- may be easier to introduce a new product (1)
- Any other relevant point.
- [3] Any three points × 1 mark or one explanation × 2 marks
- to provide information about the product (1)
- to enable the label to be screened at the check-out using a bar-code reader
- to speed up the process of payment at the check-out
- to save pricing goods individually (1) save costs of workers (1)
- to aid stock control
- to reactivate re-order stock levels/or owner knows what is selling well
- to provide market research information
- to enable buying of new supplies electronically
- to assist self-check-out systems
- Any other relevant point.
- [4] Any four points × 1 mark each or two well explained points × 2 marks
- enables customers to shop at their own pace (1) and to examine goods (1)
- may mean lower prices for goods (1) because of savings in labour costs (1)
- goods placed on shelves act as a reminder to customers (1)
- customers can compare the price/quality of different brands (1) and choose what they want (1)
- may save time queuing to be served (1)
- no need to be pestered by sales people (1)
- customers can purchase what they want to buy (1) so may be more control over spending (1)
- Any other relevant point.
- [6] Level 2 (4-6 marks) Has discussed whether or not it is better to advertise on television rather than to use national newspapers or billboards and has given a reasoned opinion. (If a candidate has discussed the use of television only award 4 marks max).
- Mero is a large organisation. It will, therefore, use mass media to advertise its products and services because it will have a large advertising budget and it will need to compete with rival supermarket chains for market share.
- Mero is likely to use television advertising because it can show what it offers and any special promotions visually, in colour and at peak viewing times for its target audiences. It can afford repeat advertising which would be necessary and to have adverts that last for some time. It is likely to use advertising agencies to manage this advertising.
- Mero may make use of national newspapers particularly weekend newspapers and colour supplements. It can afford half page or full page advertising, colour and expensive visuals aimed at potential customers. It may not use newspaper advertising as much as in the past as many people no longer read newspapers on a daily basis.
- It may make use of billboards in places where there is a large footfall. This would probably be back-up advertising for Mero. Billboards are colourful, relatively cheap to use and may remind people of what Mero has to offer.
- Mero is likely to rely on television advertising rather more than the use of national newspapers or billboards. However, it is important that Mero uses many different advertising media in order to remain competitive among the supermarket chains.
- Level 1 (1-3 marks) Has commented on the use of television and may/may not have mentioned national newspapers or billboards.
- NB. Either newspaper or billboards, or both with TV, to get 6 marks.
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