GGB produces a variety of bakery items, such as pies, cakes and bread. These goods are sold only through its 400 shops, 60 of which are franchises. Primary market research indicates that customers’ spending habits are shifting. GGB has spent 6 months creating new products, including a selection of healthy foods such as pasta and sushi. High quality will be vital. The Marketing Director must choose whether Buy One Get One Free is the most suitable sales promotion method for the new products.
(a)[2]
What does ‘franchise’ mean?
(b)[2]
Identify two possible reasons why customers’ spending patterns change.
Reason 1:
Reason 2:
(c)[4]
Identify and explain two reasons why high quality might matter to GGB.
Reason 1:
Explanation:
Reason 2:
Explanation:
(d)[6]
Identify and explain two benefits to GGB of developing new products.
Benefit 1:
Explanation:
Benefit 2:
Explanation:
(e)[6]
Do you think Buy One Get One Free (BOGOF) is the best sales promotion method for GGB to use for its new products? Support your answer with reasons.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An arrangement that allows one business to trade using another business’s name in order to sell its products or services” …