Explain four roles of packaging for CC's products.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [1] Protects the product
2. [1] as chocolate bars could be broken
3. [1] Makes it easier to transport the product in vehicles
4. [1] from the factory to the small retailers
5. [1] Promotes the brand image of the product
6. [1] such as the market leader called Choco
7. [1] Makes the product eye-catching
8. [1] so it will stand out from competing chocolate bar brands such as Nuttybar
9. [1] Information about the product can be written on the packaging
10. [1] such as that it may contain nuts as some people are allergic to nuts
11. [1] Makes it easy to open and consume the product
12. [1] young children will be able to hold the bar whilst eating it in the packaging and not getting too messy
13. [1] Is suitable for the product to fit in
14. [1] when moving the products around the chocolate factory
15. [1] Tiabar Advantage: Is in the growth stage of the product life cycle - sales have been growing steadily in its first year
16. [1] Tiabar Advantage: May have a lot of potential to grow in the future as the test marketing was positive
17. [1] Tiabar Advantage: New product development leads to diversification and spreads risk if sales of other products decline
18. [1] Tiabar Advantage: CC is already a well-known company in country X and this may make it easier to introduce and grow a new brand aimed at a different target market
19. [1] Tiabar Advantage: May be starting to make a profit after development costs have been recovered
20. [1] Tiabar Advantage: Potential for sales to grow further and for this to be a successful brand for CC - perhaps for several years to come - replacing brands that have been withdrawn
21. [1] Tiabar Disadvantage: May still be making a loss if the development costs have not yet been fully recouped
22. [1] Tiabar Disadvantage: A lot of competition from existing multinationals may make it hard to establish another brand in this market segment
23. [1] Tiabar Disadvantage: New target market for CC so less experienced in this market
24. [1] Tiabar Disadvantage: Increased competition may lead to prices needing to be reduced a little to retain customers
25. [1] Tiabar Disadvantage: Persuasive advertising used to develop brand loyalty which increases costs
26. [1] Tiabar Disadvantage: Just targeting children means a smaller target market compared to Choco
27. [1] Choco Advantage: The market leader and sales are at their highest
28. [1] Choco Advantage: Likely to be profitable since is a well-established brand and market leader. Profit is likely to support the development of new products
29. [1] Choco Advantage: Has the highest market share and been a very successful brand for several years
30. [1] Choco Advantage: Although competition may be high there are no new competitors entering this market
31. [1] Choco Advantage: High promotional expenditure not required since it is a well-established brand
32. [1] Choco Advantage: Could introduce extension strategies to revitalise sales
33. [1] Choco Disadvantage: Is at the maturity/saturation stage of the product life cycle - so sales are likely to decline in the near future without extension strategies
34. [1] Choco Disadvantage: May have to lower prices to retain high sales
35. [1] Choco Disadvantage: Next move is to the decline stage and sales fall off quickly falling prices and profits
36. [1] Choco Disadvantage: Competitive pricing may lead to lower total revenue – lower profits
37. [1] Recommendation: Stop producing Tiabar and keep Choco because Choco is the market leader with loyal customers, higher sales, revenue, and profit, allowing for extension strategies.
38. [1] Recommendation: Stop producing Choco and keep Tiabar as a new brand with steadily growing sales and higher future potential, unlike Choco which may have limited future growth.