Fizz Bomm is in the development stage of the product life cycle. Identify and explain four other stages of Fizz Bomm's product life cycle.

Mark scheme

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

1. Award one mark for each correctly named stage (max 4) plus one additional mark for development indicating the characteristics of the stage:
2. Introduction - low sales because the chocolate bar is new/loss made due to high development costs/ new into the market
3. Growth - sales start to rise rapidly/profits start to be made after development costs covered
4. Maturity - sales increase more slowly/ increasing competition/profits at their highest as sales growth is high
5. Saturation - sales remain high but stable/profits fall as sales are static and prices have been reduced
6. Decline - sales fall as new chocolate bars become available/profits fall as sales fall
7. Note: Do not reward 'Extension of the product life cycle' as a stage.
8. Indicative response: Introduction (1) as the new chocolate bar is to be launched onto the market and will have low sales to start with. (1)
9. Relevant points might include: Price: competitive market so penetration pricing will allow new chocolate bar to enter the market
10. will get established in the market - build up customer loyalty
11. longer term use competitive pricing as might be better in a competitive market
12. Promotion: if aimed at children – should be seen by target in children's magazines
13. but coupon unlikely to be effective for children
14. competitors advertise on TV
15. TV more suitable for the mass market
16. Place: keep selling in specialist sweet shops but less appropriate for mass market so may not be successful
17. competitors 'place' more suitable for mass market – CC less successful/fewer sales if do not change 'place'
18. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
19. Level 3: 9-10 marks for well justified recommendation as to whether to change the elements of the marketing mix.
20. Level 3: 7-8 marks for some limited judgement shown in recommendation as to whether to change the elements of the marketing mix.
21. Level 2: 4-6 marks Detailed discussion of relevance of each element of the marketing mix.
22. Level 1: 1-3 marks Outline of each element of the marketing mix
23. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. As it is in a competitive market the pricing strategy should be penetration pricing when the new chocolate bar is launched.
24. 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. As it is in a competitive market the pricing strategy should be penetration pricing when the new chocolate bar is launched. However, when the product moves to the growth stage of the life cycle then competitive pricing should be used to maintain brand loyalty and to stay competitive with all the other brands of chocolate bar. (L2 plus application for referring to the new chocolate bar)
25. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion which justifies whether to change the elements of the marketing mix.
26. Award up to 2 additional marks for relevant application.
27. Possible application marks: penetration pricing; advertising in children's magazines; discount coupons in the magazines; competitors only advertise on TV; distribute through speciality sweet (candy) shops; competitors distribute through wholesalers and supermarkets; chocolates/high quality chocolates/luxury chocolates; hand-made chocolates; developing a new brand of chocolate bar; lots of competitors in the mass market; output is expected to be high.