Wilde Soup Stop (WSS) makes a range of soups and hot drinks. It owns 30 shops and has sold its franchise to 10 other shops in country Z. The Marketing Director said: 'Results from our focus group show that being an ethical business is important'. WSS plans to extend its product range to include curries and cakes. WSS will need to change its brand image. The Marketing Director cannot decide whether to use sponsorship or newspaper advertising as the main method of promotion. [Figure 1: Existing logo for WSS]

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. [1] Paying a fair price to suppliers
2. [1] Paying a fair wage to workers
3. [1] Not price fixing
4. [1] Charging a fair price to customers
5. [1] Not employing child labour
6. [1] Source environmentally friendly products
7. [1] Not harming the environment
8. [2] Clear understanding e.g. customers OR people who have similar characteristics to the target market who give their opinions on a product / service
9. [1] Some understanding that this is a form of market research e.g. provide comments OR opinions about the product
10. [1] Cheaper way to expand [k] the 10 franchisees pay some costs [app]
11. [1] Each franchisee pays money [k] so may be able to open more shops in future [app]
12. [1] Can expand more quickly [k]
13. [1] Widen brand awareness [k] as logo is seen in more places [app]
14. [1] Franchisees responsible for day to day management [k] WSS has time to focus on extending its product range [app]
15. [1] Retain control of the image [k] so it can ensure the business remains ethical [app]]
16. [1] Reflect new product range [k] as now offering cakes and curries [app] can help attract a wider target market / range of people [an]
17. [1] Image might be out of date [k] as soup bowl is simple design [app] so need to change it to remain competitive [an]
18. [1] Customers like something new [k] therefore they are more likely to try [an] the curries [app]
19. [1] Attract new customers [k]
20. [1] Damage customer loyalty [k] as existing customers do not like the new logo created [an]
21. [1] Customers might not recognise the new logo OR be confused [k] so might miss the shop [app] therefore reducing sales [an]
22. [1] Time / cost (to change the logo) [k] as may need to ask focus group for their opinion [app] increasing expenses [an]
23. [1] Can target the intended market [k] attracting more customers [an] for the cakes [app]
24. [1] The business will be linked to the event sponsored [k]
25. [1] Actions of the sponsored person or group could damage WSS's reputation [k] reducing sales [an]
26. [1] Can be seen by a lot of people [k]
27. [1] Falling readership of newspapers [k]