Fig. 3.1 is a floor plan of a newly opened fashion retailer. The store has opened near other fashion stores. [Figure 3.1] Use Fig. 3.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] Encourages impulse buying / encourages shoppers to buy / near to checkout counter.
2. [1] In the centre of the store, so more likely to be viewed / first items seen / attracts shoppers to the sale items / sales promotion / attracts customers towards the sale items.
3. [1] Helps to identity where the sale items are.
4. [1] Attracts shoppers into store / attracts passers-by / sale items can be seen from the road.
5. [2] Helps staff to restock shelves as sections identified.
6. [2] Convenient stockroom for staff to go and find products / do not have to do this in front of customers.
7. [2] Staff can see if there is any shoplifting taking place / monitor stock / monitor customers.
8. [2] Staff can assist customers more easily / guide them to the section / to show them where the changing room/WC are
9. [2] As stockroom is near changing rooms, it means that staff do not have far to carry clothes.
10. [2] Easy for staff to move around / easy to access items.
11. [2] It saves staff time because they do not have to explain goods for sale.
12. [2] Shows clearly where different sections / items are / easy for staff to remember.
13. [2] Train staff better / staff need to ring up and checkout quicker
14. [2] Get another checkout
15. [2] Add another point of sale in the store
16. [2] Check that the checkout terminal is working properly
17. [2] Invest in a better checkout system that can process sales quicker.
18. [2] Move other sales staff to the checkout counter
19. [2] Reduce the number of people allowed into the store at a time
20. [2] Hire more staff
21. [2] Change place of checkout / layout of store
22. [2] Divide the queue up / have one queue for cash and one for cards / have self-service counters
23. [3] Yes - Shoppers like to compare clothes items/prices / to get greater choice in several stores (1) likely to visit their store (1) easier for customer as they do not have to go to different areas for their fashion stores (1) can travel a short distance (1) less likely to go a single shop if there are greater variety of shops together (1) therefore, greater footfall / more shoppers attracted to the area (1) more potential sales (1) greater brand awareness (1) fashion store may offer lower prices than other stores (1) or better quality goods (1) may attract competitors' customers (1) gives them a competitive advantage (1) increases sales (1) increases their market share (1) would have a better knowledge of what the other stores are selling / trends (1) could monitor competitor offers (1)
24. [3] No - Increases competition (1) other stores may have already customer loyalty (1) may be difficult for a new store to break customer loyalty (1) the competing stores may be selling their clothes at a cheaper price (1) of better quality / more variety (1) shoppers will go there (1) lose customers (1) may have to reduce prices / offer discounts to compete (1) leading to lower profit margins (1) poor sales (1) less income (1)
25. [8] Sponsorship is the act of supporting an event financially or through the provision of a product.
26. [8] Discount coupons are a reduction in price given to customers.
27. [8] Option 1: Sponsorship of a local music event: Sponsoring a local music event links their store brand with the event raising awareness / name recognition.
28. [8] Could help to improve the public image of the store creating a positive way to support the local community.
29. [8] Setting up a branded stall at the event with hats and tops for sale is an easy way to get new business.
30. [8] Promotes a positive image of the store by linking with event as a cultural activity.
31. [8] It has limited scope for marketing as they cannot target customers.
32. [8] It can be costly in terms of personnel and goods provided.
33. [8] Option 2: Discount coupons: Coupons can interest new shoppers and increase numbers of people going to the store to buy clothes.
34. [8] Coupons can interest customers in new deals such as BOGOFs on tops.
35. [8] Coupons can help competitive edge by giving the clothes store an upper hand on local clothing stores.
36. [8] Raise brand awareness as the coupons will be seen by consumers who do not go to this clothes store.
37. [8] Can target customers so that this clothes store does not waste time / money sending them to customers who would be less interested.
38. [8] Offering coupons can cut into profits as the shop is providing a discount to people who might be going to buy their clothes without them.
39. [8] It can be costly as there is the design and production costs involved.
40. [8] It may lessen the value of their clothes as a discount can negatively affect the perceived value and quality of their clothes
41. [8] Evaluation: We are not told what the sponsorship will involve. For example, will the local music event endorse the clothes store with clothes store banners. Both sponsorship and coupons have the potential to increase sales but if the local music event causes bad publicity this will reflect badly on the store. It is for that reason that coupons are the recommended choice.