Year 10 Business Ark Globe Academy Remote Learning Pack Spring Term 1

Session Title Work to be completed Resource provided Outcome On-Line Support

1 2.2.1 Product 1. Complete knowledge Worksheet Completed https://www recap worksheet Spec check questions worksheet .bbc.co.uk/bi 2. Answer the spec check Case study tesize/guides questions Full sentences /z63847h/re 3. Read the case study and for all the spec vision/1 answer the exam style check questions questions Full exam style answers 1a/1b Online Lesson MS Teams lesson will be scheduled Email class on your calendar teacher for any support 2 2.2.2 Price 1. Complete knowledge Worksheet Completed https://www recap worksheet Spec check questions worksheet .bbc.co.uk/bi 2. Answer the spec check Case study tesize/guides questions Full sentences /zn47wty/re 3. Read the case study and for all the spec vision/1 answer the exam style check questions questions Full exam style answers 2a/2b Online Lesson MS Teams lesson will be scheduled Email class on your calendar teacher for any support 3 2.2.3 1. Complete knowledge Worksheet Completed https://www Promotion recap worksheet Spec check questions worksheet .bbc.co.uk/bi 2. Answer the spec check Case study tesize/guides questions Full sentences /zvjhxyc/revi 3. Read the case study and for all the spec sion/1 answer the exam style check questions questions Full exam style answers 3a/3b Online Lesson MS Teams lesson will be scheduled Email class on your calendar teacher for any support 4 2.2.4 Place 1. Complete knowledge Worksheet Completed https://www recap worksheet Spec check questions worksheet .bbc.co.uk/bi 2. Answer the spec check Case study tesize/guides questions Full sentences /z7cqd6f/rev 3. Read the case study and for all the spec ision/1 answer the exam style check questions questions Full exam style answers 4a/4b Online Lesson MS Teams lesson will be scheduled Email class on your calendar teacher for any support 5 2.2.5 Using the 1. Complete knowledge Worksheet Completed https://www marketing mix recap worksheet Spec check questions worksheet .bbc.co.uk/bi to make 2. Answer the spec check Case study tesize/guides business questions Full sentences /zn2shbk/re decisions 3. Read the case study and for all the spec vision/1 do the research task check questions 4. Answer the exam style questions Full exam style answers

Session 1 – Product

Q1 Fill in the gaps Deciding on the ______to sell is a very important decision that every business will need to make. When developing products, it is very important for a business to consider the ______mix, to ensure the product meets the precise needs of its ______customers. This will give the product a greater chance of being ______when launched onto the market. For each product, there needs to be a balance between the ______, i.e. how the product works, the ______, how the product looks and feels and the ______, how much the product costs to make and whether it is cost effective to produce.

The product life ______is important to businesses when making decisions regarding the marketing ______, such as what ______to charge or the level and type of promotion to use. In addition, it may be necessary for a business to use ______strategies, if a product enters the ______phase, to lengthen its product life cycle.

Businesses will often try and ______their products, by making them different to what is already available to buy. This can be achieved by adding new features to a product, distinctive packaging or clever branding. If a business is operating in a ______market, it is extremely important that its products have a ______selling point (USP) to make sure they stand out from rivals.

Choose from: extension; successful; mix; unique; price; function; cost; differentiate; competitive; design; decline; cycle; product; aesthetics; target

Q2 What’s your opinion? Explain your opinion on these questions about the design mix 2.1 Why do you think cost and function might be more important than aesthetics to a manufacturer of a mobile phone priced at £10?

2.2 Why do you think function and aesthetics might be more important than cost to a manufacturer of a mobile phone priced at £600?

Q3 Product life cycle expertise! Identify the four phases of the product life cycle and label them in the boxes provided - 3.1-3.4

Sales

Time

3.1 3.2 3.3 2.4

Q4 Extension strategies… explain how each of these extension strategies may reverse the “decline” phase of a product in the product life cycle

4.1 Updating packaging

4.2 Adding different features 4.3 Changing target market 4.4 Increased advertising

4.5 Lowering price

4.6 Re-branding

4.7 Re-positioning

Q5 Explain…

5.1 the term product differentiation

5.2 two methods a business can use to differentiate its good or service Method 1:

Method 2:

5.3 why it is important for a business to differentiate the products it sells from rival businesses

Spec check….Write out the following in full sentences

1. Can you list the 3 elements of the design mix? 2. Can you list the different stages of the product life cycle? 3. Can you describe sales at maturity stage? 4. Can you describe costs at introduction stage? 5. Can you explain what is meant by the term extension strategy? 6. Can you explain what is meant by the term differentiation? 7. Can you explain the benefits of differentiation for a business?

Ten Yards!

It’s the 88th minute of the match and the score is 1-1. You are about to take a free kick, 20 yards from goal. A wall forms, the ref pushes it 10 yards back, then tiny steps shuffle the wall forwards as you prepare to take the kick. By the time you shoot, the wall is 7 yards away and the ball flicks to safety off a defender’s head. You protest but the ref waves play on. The points are lost – forever.

What do you do about it? Anything?

Well, when this happened to Argentinian footballer, journalist and entrepreneur Pablo Silva, he went away and developed a product. He knew what was needed: a can that could spray a line that would mark out the 10 yards – and would disappear within 30 seconds! That would give the referee far better control of the situation.

A Brazilian inventor, Heine Allemagne, patented the spray in 2002 and Pablo Silva worked with him to develop the chemical spray commercially using the name 9-15 (9 metres 15 cm is 10 yards). From 2007 the Argentinian F.A. trialled the spray in second division games and from 2009 it was used in the Argentinian First Division. The big breakthrough came in 2014 when FIFA adopted the spray for the World Cup. Since then its use has spread. Referees in the Premier League first used the spray in the 2014-2015 season.

Pablo had hoped that his idea might, one day, make him able to buy his own football club but there have been a number of ‘me-too’ products developed and Pablo’s company has not sold that many cans. As it spreads throughout the world professional then amateur game, there is a potential for selling millions of the cans each year. It will make referee’s lives much easier, and could ensure that more goals are scored per match. There is no guarantee however that Pablo and Heine will reap the rewards.

Watch out for it in the Premier League!

Questions (10 marks)

1. Outline one factor Pablo might take into account when deciding on the right price for his spray. (2)

2. Outline one impact on Pablo of the arrival of ‘me-too’ products on the market. (2)

3. Analyse features of the design mix which would be important to the success of the spray. (6)

Session 2 – Price

Q1 Fill in the gaps There are many influences on the ______strategies used by businesses. For example, different ______may be charged at ______stages in the product ______cycle. Prices may also reflect how much ______are charging for similar products.

Generally, customers like to buy things at ______prices, which offer good ______for money. However, businesses prefer to sell their products at ______prices, as each item sold will generate more revenue for the business. However, as a basic rule, at a ______price demand for the product will be high and as the price ______demand will fall. Choose from: value; increases; life; competitors; different; low; high; low; prices; pricing

Q2 High v low price? Identify which pricing strategy the following businesses are most likely to use High price Low price 2.1 Vauxhall 2.2 Primark 2.3 Waitrose 2.4 ASDA 2.5 Ferrari 2.6 Armani

Q3 True or false? Identify if the following statements are true or false 3.1 When a product has a recognisable brand name, a higher price

can be charged 3.2 When there is a lot of competition within a market, a business can

raise its prices 3.3 When a product is aimed at customers with a high income, higher

prices can be charged 3.4 When there is little or no competition in the market, prices tend to

be lower 3.5 When a product is known for its quality, lower prices will be

charged

Q4 Match it – Number 1! Match each of the influences on pricing strategies to the most appropriate example a. A high price is charged for a two week luxury safari 4.1 Technology holiday, aimed at customers with a high income b. A travel agent charges a lower price for a two week 4.2 Competition holiday to a destination with declining popularity c. The large number of online travel agents means prices 4.3 Market segment in the holiday/travel market have to be very competitive

d. Price comparison travel websites, such as trivago, 4.4 Product life mean that customers can easily compare holiday prices cycle before booking from the comfort of their own home

Q5 Match it – Number 2! Match the stage in the product life cycle to the most appropriate statement a. Price may be increased at this stage, as sales growth 5.1 Introduction slows and there is a desire to generate as much profit as possible 5.2 Growth b. Price may be reduced at this stage, due to falling sales c. Price may be kept low at this stage, to encourage 5.3 Maturity further sales growth d. A low price may be charged at this stage, in order to 5.4 Decline establish the product in a competitive market and create sales

Spec check….Write out the following in full sentences 1. Can you define the term ‘competitive pricing’? 2. Can you define the term ‘cost-plus pricing’? 3. Can you define the term ‘price skimming’? 4. Can you define the term ‘price penetration’? 5. Can you list 3 factors that influence the setting of prices? 6. Can you identify 3 pricing strategies for existing products? 7. Can you give 3 internal factors that will influence a firms pricing decision? 8. Can you explain why a business might lower its prices? 9. Can you explain why setting the right price is important for businesses? 10. Can you identify which pricing strategy is most appropriate at each stage of the product life cycle?

Should “pound shops” sell items at prices other than £1?

Poundland, the UK’s biggest single-price retailer, is changing its pricing range. The proportion of items selling at £1 will drop from 85 per cent to around 75 per cent at a trial involving 24 stores in the Midlands. The company introduced £2 and £5 price points in 2017 and has experimented with promotions at sub-£1 prices. But these would be permanent new prices. Barry Williams, managing director, described the move as an “evolution from single price retailer to a simple price retailer”. “There are certain products, brands and categories that we just cannot provide to our customers at a £1 price point,” he said, citing shampoo as an example. “I’ve got 7m customers each week being forced to shop elsewhere as a result.” Chris Edwards, the founder of former rival , said the chain’s demise last year was partly because customers were confused by the multiple price points it introduced. “I can’t help thinking that if that’s what you’ve got above the door then that’s what you’ve got to do, or else it’s confusing for customers,” he said. Mr Edwards and his son have since set up a new chain, OneBelow, where everything is £1 or less. It currently has 50 stores and is targeting 65 by the end of the year. But operating at a single price point is challenging. The decline in sterling from almost $1.50 in early 2016 to barely $1.20 has squeezed margins on items bought in dollars, although Mr Williams said this applied to only 30 per cent of his stock. Most pound shops are also predominantly high-street operators, and traffic to town centres has been weak this year. “We have definitely seen a decline on high streets,” said Mr Edwards. “What’s making it work for us are the rents we’ve negotiated with landlords.” Competition from other discount retailers with multiple price points and wider ranges has also intensified, with the likes of B&M and opening new out-of-town stores and supermarkets Aldi and Lidl opening 100 stores between them each year. (Adapted from an article in the Financial Times, 13 August 2019)

Questions (20 marks): 1. Calculate the percentage fall in sterling against the dollar as it moved from $1.50 to $1.20 to the pound. (2)

2. Analyse the impact of the decline in sterling on profit margins. (6)

3. Evaluate whether should sell items at prices other than £1. (12)

Session 3 – Promotion

Q1 Fill in the gaps Promotion is the way a business communicates a ______with its existing and ______customers. A business might want to communicate with its customers to ______or remind them about a particular good or service, to ______them to buy a product or to ______a certain image for a product.

There are a number of different ______strategies that can be used for different market segments. These include advertising, ______, product ______, special ______and branding. In addition, businesses are increasingly using ______to promote goods and services, such as targeted advertising online, viral advertising via ______media and e- newsletters. Choose from: create; technology; offers; social; persuade; trials; message; promotion; inform; sponsorship; potential

Q2 Match it – Number 1! Match the following promotion strategies to the most appropriate definition a. When a business offers a good/service at reduced 2.1 Advertising prices/rates b. Making a business/product recognisable, for example 2.2 Sponsorship with the use of a logo, slogan c. When a business communicates with its customers 2.3 Product trials using media, such as TV, radio, cinema, magazines d. When a business pays to have its name/brand 2.4 Special offers associated with an event/activity/individual

e. When the products are tested or tasted by potential 2.5 Branding customers

Q3 Match it – Number 2! Match the following examples to the most appropriate promotion strategy 3.1 A free sample of a new shampoo a. Advertising 3.2 A name, logo, slogan, for example b. Sponsorship 3.3 A full page in a magazine used to promote a product c. Product trials 3.4 NatWest support English test cricket d. Special offers 3.5 Buy one get one free promotions e. Branding Q4 Define it! Write a brief definition for each of these key terms

4.1 Targeted advertising online

4.2 Viral advertising via social media

4.3 E-newsletters

Q5 Which strategy? Identify which type of promotion each statement relates to Viral Targeted advertising E- advertising (via social newsletter online media) 5.1 A multinational car manufacturer launches a new car model via an online video on Facebook 5.2 An international charity sends information and updates via e-mail to people who donate 5.3 A national sports venue targets spectators/customers with digital promotions

Spec check….Write out the following in full sentences 1. Can you give 2 examples of ‘advertising’? 2. Can you give 2 examples of ‘sponsorship’? 3. Can you give 2 examples of ‘special offers’? 4. Can you give 2 examples of ‘branding’? 5. Can you list 2 sales promotion methods a business might use to boost sales? 6. Can you explain why it is important to choose an appropriate promotional strategy? 7. Can you explain the benefit of using e-newsletter to attract customers? 8. Can you explain 1 way technology is used in promotion? 9. Can you explain the benefit of a product trial? 10. Can you explain how businesses can use technology for promotion? 11. Can you explain how having a strong brand image can benefit a business?

Beyoncé joins the Adidas team

Adidas is teaming up with pop star Beyoncé Knowles to develop footwear and clothing as the sportswear group tries to boost sales in the face of fierce competition from Nike, Puma and Lululemon. Beyoncé will become a “creative partner” of the €45bn Germany-based company, the latest in a series of deals between pop superstars and the world’s biggest consumer brands. The feminism advocate launched her athleisure venture, Ivy Park, about three years ago with Philip Green, the British retail tycoon behind Topshop. Mr Green relinquished his stake to Beyoncé last year. In a statement on Thursday, Beyoncé said she was “relaunching and expanding” Ivy Park — whose offerings include hoodies priced at more than $200 — on a “global scale” with Adidas. “This is the partnership of a lifetime for me,” she said.

Beyoncé is lending some of her star power to Adidas in an athleisure collaboration which the German company hopes collaboration will boost its competitive edge

Adidas said the deal “respects Beyoncé’s ownership of her company”. Financial terms were not disclosed. Sportswear companies are seeking to strengthen their appeal to women amid the athleisure craze that has seen leggings worn outside the gym and even into the office. They are also trying to cash in on the value of celebrity brands. Other tie-ups include Puma’s deal with Rihanna, which helped boost sales to women. Adidas already collaborates with the rapper Kanye West through the Yeezy brand. The company announced the partnership with Beyoncé, whose six albums have all reached number one in the US. Eric Liedtke, executive board member at Adidas, said in the statement on Thursday: “Beyoncé is an iconic creator but also a proven business leader.” (Adapted from an article in the Financial Times, 4 April 2019) Questions (15 marks): 1. Define the term ‘brand’. (1) 2. Outline one market segment that Adidas hopes to target with its products. (2) 3. Evaluate the extent to which partnering Beyoncé could give Adidas a competitive advantage. (12)

Session 4 – Place

Q1 Fill in the gaps In the marketing mix, “place” refers to how a product gets from the ______to the consumer. This is known as the channel of ______. A product may pass through another business, called a ______, in other words a physical store, before it reaches the consumer. Using a retailer however, means that the product can take ______to reach the consumer. The product may also become more expensive, as each business adds to the final ______, as the retailer too will want to make a ______on the goods that it sells.

Sometimes a producer can sell direct to a customer via the internet. This is known as ______-______. A business which sells its products through an online shop is known as an ______- ______.

All elements of the marketing mix should work ______and give the ______message to the customer. Each element of the mix can therefore influence other elements. For example, a product that is seen as high in quality is likely to have a ______price.

The marketing ______can be used to build a competitive ______, for example different product features or exciting promotion strategies can make a business stand out from the competition. Choose from: mix; together; e-tailer; high; cost; advantage; retailer; producer; profit; distribution; same; longer; e-commerce

Q2 Define it! Write a brief definition of each of these key terms

2.1

Retailer

2.2 E-

tailer

Complete the diagram using the terms given and answer the questions Q3 which follow CHANNELS OF DISTRIBUTION DIAGRAM 3.1

3.3

3.2

3.4

Consumer Producer E-tailer Retailer

From looking at the diagram, identify which distribution method: 3.5 would usually make the product the most expensive for the consumer to buy

3.6 would enable the producer to keep the full selling price

3.7 is becoming increasingly popular, particularly due to the growth of e-commerce

Benefit or drawback? Identify whether each of the following statements Q4 relates to a retailer or e-tailer and then decide whether it is a benefit or drawback to the business Retailer E-tailer Benefit Drawback Benefit Drawbac k 4.1 Customers return a high percentage of goods 4.2 Businesses can sell to a world-wide market 4.3 Customers can see, touch and try products which encourages sales 4.4 Saves on the cost of running a high street store 4.5 Specialist, face-to-face advice is available at the point of purchase 4.6 It can be expensive to set up the required distribution service and online systems 4.7 It is often harder to compete on price, as running costs are often very high

Spec check….Write out the following in full sentences 1. Can you define the term ‘place’? 2. Can you define the term ‘retailer’? 3. Can you define the term ‘e-tailer’? 4. Can you identify 2 advantages and 2 disadvantages of being a retailer? 5. Can you identify 2 advantages and 2 disadvantages of being an e-tailer? 6. Can you explain how having a strong brand image can benefit a business?

Will Primark embrace online retailing?

Primark recently opened its largest ever store in Birmingham, which cost more than £50m and covers 160,000 square feet. The flagship outlet includes a Disney café, barber’s shop and beauty salon. Primark executives have suggested that the company could add another 1m sq ft to its existing 7m in the UK. It is also refurbishing older stores and relocating into bigger units when it gets the opportunity. Fashion retailer Primark has so far avoided selling clothes online. It has used its social media presence, with its 7m Instagram followers and a posse of influencers to attract shoppers to its shops. The lack of an online distribution method does not appear to have hurt Primark’s longer-term sales or profit growth. Its UK store sales have grown at an annual rate of 14 per cent over the past two decades, driven by new store openings and a shift in brand perception. Profits have more than doubled since 2010. Primark’s supply chain is set up for large palletised deliveries to stores, rather than individual packages. Moving to online retailing would be both costly and complex. Primark does have competition from online rivals like Boohoo operating at lower price points but Primark has not developed a fully transactional Primark website offering home delivery. The company is put off by the cost of fulfilling orders and by the high level of returns. Asos for example, has this week changed elements of its returns policy to deter serial returners who treat Asos as a rental service. John Bason, finance director, said: “We asked if there was anything in ecommerce that would work for Primark. If there is something to look at, it would be click and collect.” Click-and- collect is where goods are ordered online and collected in person from stores. This would be Primark’s first move into online retailing. The company would probably test the idea in one region and if successful, roll it out to allow customers to order from the full Primark range and collect from one its 189 stores. (Adapted from an article in the Financial Times, 11 April 2019)

Research activity Find out how Primark uses Primark Instagram.

Questions (20 marks): 1. Outline one way that Primark can use Instagram to increase sales. (2)

2. Analyse the drawbacks of online retailing which have so far stopped Primark from adopting it (6)

3. Evaluate whether Primark is likely to benefit from adopting online retailing in the future. You should use the information provided as well as your knowledge of business. (12)

Session 5 – Using the marketing mix

True or false? Identify if the following statements are true True or Q1 or false false? 1.1 Promotion needs to reflect and reinforce the perceived quality of

the product being sold 1.2 In a competitive market, price may be the most important element

of the marketing mix 1.3 Place is always the most important element of the marketing mix 1.4 When targeting customers with low incomes, specialist product

features may be more important than price 1.5 A producer may only allow certain retailers to stock its products in

order to maintain a specific brand image

Spec check….Write out the following in full sentences 1. Can you define the term ‘marketing mix’? 2. Can you explain how a business can use the marketing mix to build a competitive advantage? 3. Can you explain the impact of changing customer needs on the marketing mix of a business?

Uber Eats might deliver your groceries Uber is expanding its food-delivery business to include everything from groceries and convenience-store items to cinema popcorn as it squares up to rivals like Amazon, DoorDash and Deliveroo. According to Jason Droege, head of Uber Eats “.. there is a bit of an ecommerce ‘moment’ that is happening at a local level. That’s a lot of what we are investing behind here.” Uber is looking to use its network of some 4m drivers to fill the gap between ordering from Amazon-style warehouses and more traditional grocery delivery services such as Ocado. Mr Droege said. “(Uber) Eats, in one way, is a restaurant delivery service. In another way, we are solving customers’ dining needs. If you think about it that way, grocery stores and restaurants are serving a lot of the same needs.” Earlier this year, Uber quietly expanded a trial in Australia with local supermarket group Coles, offering both cooked meals and staples including milk, bread and fruit from a Sydney store. Now, Uber is talking to supermarkets in Europe and North America, including Sainsbury’s in the UK, about delivering groceries and prepared meals. Cinema chains in Australia and Canada are even delivering fresh popcorn through Uber Eats to customers who prefer to watch movies at home. Any Uber grocery delivery service will also find itself competing with Amazon and its Whole Foods supermarket chain, as well as a wide array of local players around the world. (Adapted from articles in the Financial Times, 8 August 2019, 9 August 2019)

Activity

• Research the trials Uber Eats is conducting with Sainsbury’s, Coles and Cineplex. • Write a half-page summary which describes the trials and which considers the following questions: • What type of consumer might be attracted to such a service? • In what way(s) might such a service add value to consumers? • How likely is it that this innovation will prove to be successful?

Questions (20 marks): 1. Outline one reason why Uber Eats trialled its new idea in only a limited number of places (2)

2. Analyse how on Uber Eats’ demand delivery app adds value. (6)

3. Evaluate whether Uber Eats’ expansion of its food delivery business is likely to be a success. (12)