GBU is a public limited company. It produces an assortment of beauty products, including shampoo and soaps, for the mass market. In the previous year, GBU’s revenue fell. The Marketing Director has been studying the findings from its primary market research, which was based on a sample of 2000 consumers. An extract is shown in Fig. 1. She thinks keeping customer loyalty matters more than winning new customers.
Fig. 1: Extract from GBU’s market research.
The first pie chart asks: ‘Where do you buy your beauty products?’ The segments are labelled: mail order 200, shop 1100, online 700.
The second pie chart asks: ‘Would you buy our beauty products?’ The segments are labelled: yes 1700, no 300.
(a)[2]
How would you define ‘mass market’?
(b)[2]
Calculate the percentage (%) of consumers who buy beauty products online.
(c)[4]
Identify and explain two reasons why GBU’s market research may not help the Marketing Director.
(d)[6]
Identify and explain two advantages to GBU of using shops as a channel of distribution.
(e)[6]
Do you think maintaining customer loyalty should matter more to GBU than attracting new customers? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Offering the same product to the whole market” …