Identify and explain two ways QC can create added value for its new service.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [2x1] Knowledge - award one mark for each way
2. [2x1] Analysis - award one mark for a relevant explanation for each way
3. [2x2] Application – award two application marks for each way
4. Reward ways of how to set higher prices such as
5. Improve quality
6. Provide extra services
7. Improve brand image
8. Reward ways of how to reduce input costs such as
9. Buy cheaper ingredients by changing supplier/buying in bulk to gain a discount/negotiating cheaper price
10. Source cheaper ingredients from home country instead of importing ingredients
11. Indicative response: Set a higher price (1) so that there is a larger difference between the input costs and price. (1) QC could add additional services to the catering such as silver service (ap) so it provides a USP that makes the catering service better than competitors and therefore clients will be willing to pay a higher price. (ap)
12. Possible application marks: Catering services; 100 employees; rising incomes; well trained and experienced employees; good reputation; provides catering for businesses such as for conferences; imports food ingredients; birthday parties; wedding services; buy locally produced ingredients; increased spending on luxury goods.
13. Relevant points might include:
14. Questionnaire about the wedding catering market carried out by QC: Primary research so original research; Gathered for QC specific purpose; QC is a small business and therefore could not afford a large sample; Not experienced in carrying out primary research so may be less accurate
15. Questionnaire about the wedding catering market carried out by a market research agency: Large size sample size; Carried out by experts in market research; May include information not thought about by Neil and Jin; Not specifically about QC target market; The whole market might be very different to QC specific target market; Expensive for QC to use
16. Government statistics on the number of weddings in country Z: Cheap and quick to carry out; Easily accessible; Gain an idea of overall trends in the market for weddings; May be out of date; May not be helpful as not specific about wedding catering and may only gain numbers etc.
17. Conclusion might include: Up to date information; Expertise used/skill of researchers; Sample size; Effective questions on questionnaire; Specific to QC target market
18. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Questionnaire research is first-hand information gathered for the specific purposes of QC.
19. Level 2 - 1 x L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Questionnaire research is first-hand information gathered for the specific purposes of QC. This makes the information gathered about food requirements for weddings more useful as the questions set will be to find out exactly the information required by QC. However, Jin and Neil are not skilled in carrying out research and they may not phrase the questions very well leading to less accurate information. (L2)
20. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a justified conclusion of which way will give the most accurate results for the wedding catering market.
21. Award up to 2 additional marks for relevant application.
22. Possible application marks: Established 10 years ago; two shareholders; wants to expand; caterers; birthday parties; events; provides catering for businesses such as for conferences; 90 part-time employees; 10 full-time employees; has a cash flow problem; young couples getting married.