SECTION A: STRUCTURED QUESTIONS (60 marks) Answer any 4 questions.

1.

Explain environmental scanning and discuss why it is important for [15] marketing planners to take such an audit.

2.

Outline the importance of the Boston Consulting group (BCG) matrix in [15] the analysis of the business of the firm.

3.

Explain how customer relationships can be developed and supported in [15] relation to the airline industry.

4.

Discuss which pricing and promotional strategies would be most [15] appropriate for a product in the FMCG sector. Provide an example.

5.

Critically assess any three brand strategies that a company might adopt. [15]

6.

Discuss the three main strategies available to marketers to increase [15] demand for a specific brand in the mobile phone industry.

Please turn to page 3

SECTION B: CASE STUDY (40 marks) Read the case study and answer the following questions.
Ben Sherman Ben Sherman is a globally recognised lifestyle brand which is sold in 35 countries around the world. In 2004, Ben Sherman was acquired by the American-based company, Oxford Industries. This group is an international apparel design, sourcing and marketing company that features a diverse portfolio of owned and licensed lifestyle brands. Ben Shermans name has always been closely linked with the British music scene and with fashion. Its customers are young and at the forefront of style. Throughout the years high profile customers include musicians, models, actors and bands, such as Blur, Oasis and the Kaiser Chiefs. Ben Sherman produces a wide product range that appeals to all its target market segments. The range includes casual clothes, formal wear, denim, footwear and lifestyle accessories, such as underwear, watches, bags, belts and fragrances. A strong brand image ties the product range together. Each collection has an umbrella theme. In 2007, the product theme was This Sporting Life and the marketing theme was British music and style. Ben Sherman uses major fashion shows to launch its collections to the press. The fashion year has two cycles the spring/summer season and the autumn/winter one. The fashion industry is highly competitive and fast-moving. Fashion products tend to have a short life cycle. Competition amongst fashion retailers forces businesses to refresh their ranges a number of times in a year. Ben Sherman produces mostly medium-price range products. These brands are identifiable by their quality and style. Ben Sherman uses brand identity images like the plectrum logo and the Ben Sherman script label in subtle ways. Its products are good quality and individually styled and therefore the price reflects this Ben Sherman works in close partnership with department stores, creating shop-in-shops a unique concept where the customer feels that they are in a Ben Sherman store. Ben Sherman also has its own stores around the world and opens new ones each year. It has a long-term commitment to expanding globally. The interiors of its flagship stores reflect British style and identity through use of antique furniture, music memorabilia, photographs and the Union Jack flag. For a limited time in 2007, each store worldwide displayed a specially designed Gibson guitar in a dedicated window space decorated with and inspired by the Ben Sherman product, brand and music influences. Gibson is the worlds leading guitar specialist and created for Ben Sherman a set of 20 collectable limited edition guitars. Each unique guitar was then sold at auction online to raise money for charity. The company transmitted news of the auctions and bids via the Internet and gained online, national and regional press. Ben Sherman relaunched its website www.bensherman.com in February 2007 to provide a more interactive experience for customers to encourage them to spend more time on the site and shop. Ben Sherman gives clothes to famous people. This is seen as an endorsement for the product. Amy Winehouse and Ricki from the Kaiser Chiefs have been used to promote Ben Sherman products by wearing them at high profile events and featuring in the printed press The Ben Sherman brand can be seen in the layout and decoration of its stores, its links to music, its advertising campaigns, packaging and point-of-sales displays. Ben Sherman is a brand that appeals to the youth market and has become a great British icon, reflecting British culture as it does business across the world. Please turn to page 4

Questions:

1)

Comment on the marketing mix which is adopted by Ben Sherman.

[20]

2)

Being in the fashion industry, what should Ben Sherman do to remain [10] competitive?

3)

Which marketing growth strategies have been used by Ben Sherman? [10] Please justify your answer.

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SECTION A: STRUCTURED QUESTIONS (60 marks) Answer any 4 questions.

1.

Using your knowledge of the Product Life Cycle (PLC) curve, advise a [15] company on the marketing mix to be adopted for a product whose sales are increasing rapidly.

2.

Explain Porters Five Forces model of industry analysis, using the [15] detergents as an example.

3.

The way the brand is communicated will determine the outcome of the [15] success of the brand strategy. Do you agree with this statement and why?

4.

Discuss the two main strategies available to marketers to increase [15] demand for non-fat milk in Mauritius.

5.

Compare and contrast the three types of market coverage available to a [15] marketer to distribute its product. Provide examples for each type of market coverage.

6.

Describe the Ansoff Growth Matrix and explain its relevance in [15] marketing planning. Provide examples for each strategy.

Please turn to page 3

SECTION B: CASE STUDY (40 marks) Read the case study and answer the following questions.
Repositioning Skoda Skoda manufactures cycles, cars, farm ploughs and airplanes in Eastern Europe. By 1990 the Czech management of Skoda was looking for a strong foreign partner. Volkswagen AG (VAG) was chosen because of its reputation for strength, quality and reliability. It is the largest car manufacturer in Europe with a 12% share of the world car market. Volkswagen AG comprises the Volkswagen, Audi, Skoda, SEAT, Volkswagen Commercial Vehicles, Lamborghini, Bentley and Bugatti brands. Each brand has its own specific character and is independent in the market. Skoda UK sells Skoda cars through its network of independent franchised dealers. To improve its performance in the competitive car market, Skoda UKs management needed to assess its brand positioning. Skoda UK carried out research. Skoda found out that 98% of its drivers would recommend Skoda to a friend. Skoda has only 1.7% market share. This made it a very small player in the market for cars. In the past the Skoda cars had an image of poor vehicle quality, design, assembly, and materials. Crucially, this poor perception also affected Skoda owners. For many people, car ownership is all about image. A brand health check in 2006 showed that Skoda still had a weak and neutral image in the mid-market range it occupies, compared to other players in this area, for example, Ford, Peugeot and Renault. Skoda noted that its competitors marketing approaches focused on the product itself. Audi emphasises the technology through its strapline, advantage through technology. BMW promotes the ultimate driving machine. Many brands place emphasis on the machine and the driving experience. Skoda UK discovered that its customers loved their cars more than owners of competitor brands, such as Renault or Ford. The UK car market includes 50 different car makers selling 200 models. Within these there are over 2,000 model derivatives. Skoda needed a strong product range to compete in the UK and globally. In the UK the Skoda brand is represented by seven different cars. Each one is designed to appeal to different market segments. For example: the Skoda Fabia is sold as a basic but quality city car the Skoda Superb offers a more luxurious, up-market appeal the Skoda Octavia Estate provides a family with a fun drive but also a great big boot. Each model range is priced to appeal to different groups within the mainstream car market. Skoda needed to respond to EU legal and environmental regulations. by designing products that are environmentally friendly at every stage of their life cycle. Skoda UK has responded with a new marketing strategy based on the confident slogan, the manufacturer of happy drivers. The campaigns promotional activities support the new brand position. The key messages for the campaign focus on the happy customer experience and appeal at an emotional rather than a practical level. The campaign includes a TV advert which showed that the car was full of lovely stuff with the happy music in the background. It also includes an improved and redesigned website which is easy and fun to use. This is to appeal to a young audience. It embodies the message experience the happiness of Skoda online. Customers are able to book test drives and order brochures online. The result is that potential customers will feel a Skoda is not only a reliable and sensible car to own, it is also lovely to own. Please turn to page 4

Questions:

1)

Conduct a SWOT analysis of Skoda.

[16]

2)

According to you, will the new marketing strategy adopted by Skoda [15] improves its performance in the competitive market and why?

3)

Which generic strategy should Skoda adopt? Justify your answer.

[9]

-END OF QUESTION PAPER

SECTION A: STRUCTURED QUESTIONS (60 marks) Answer any 4 questions.

1.

Using your knowledge of the Product Life Cycle (PLC) curve, advise a [15] company on the marketing mix to be adopted for a product which has just been launched.

2.

Taking the chocolate industry as an example, suggest a marketing mix, [15] which would be appropriate for such types of products.

3.

Discuss any three brand strategies that organisations use to get the [15] attention of customers. Provide an example for each brand strategy.

4.

Discuss the two main strategies available to marketers to increase [15] demand for non-fat milk in Mauritius.

5.

Briefly outline any five.internal or external factors influencing the [15] pricing decisions.

6.

Using examples of business to business marketing, explain the [15] importance of developing relationships with customers.

Please turn to page 3

SECTION B: CASE STUDY (40 marks) Read the case study and answer the following questions.
IKEA IKEA is an internationally known home furnishing retailer. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEAs website. IKEA stores include restaurants and cafs serving typical Swedish food. They also have small food shops selling Swedish groceries. Stores are located worldwide. In August 2008, the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees. It welcomed 565 million visitors to the stores during the year and a further 450 million visits were made to the IKEA website. In 2008, IKEA opened 21 new stores in 11 countries and expects to open around 20 more in 2010 as part of its strategy for growth. Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. IKEAs products cater for every lifestyle and life stage of its customers, who come from all age groups and types of households. Since it was founded, IKEA has always had concern for people and the environment. The IKEA vision to create a better everyday life for the people puts this concern at the heart of the business. IKEA has responded to the publics rising concern for sustainability in its choice of product range, suppliers, stores and communication. It has also spotted business potential in providing sustainable solutions. IKEAs concern for people and the environment encourages it to make better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment. IKEA has a strong global brand, which attracts key consumer groups. It promises the same quality and range worldwide. IKEA offers a wide range of well-designed, functional products at low prices, reaching an ideal balance between function, quality, design and price. Therefore, IKEA is able to attract and retain its customers. IKEA believes in creating long-term partnerships with its suppliers. By committing to buying large volumes over a number of years, IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. Some of the opportunities that IKEA takes advantage of through its sustainability agenda are: a growing demand for greener products and a growing demand for low priced products. Trends in the current financial climate may result in consumers trading down from more expensive stores, demand for reduced water usage and lower carbon footprints. The size and scale of its global business could make it hard to control standards and quality. Some countries where IKEA products are made, do not implement the legislation to control working conditions. This could represent a weak link in IKEAs supply chain, affecting consumer views of IKEAs products. The need for low cost products needs to be balanced against producing good quality. IKEA also needs to differentiate itself and its products from competitors. IKEA believes there is no compromise between being able to offer good quality products and low prices. IKEA needs to keep good communication with its consumers and other stakeholders about its environmental activities. The scale of the business makes this a difficult task. IKEA produces publications in print and online (for example People and the Environment) and carries out major TV and radio campaigns to enable the business to communicate with different target audiences. Please turn to page 4

A slowdown in first time buyers entering the housing market which is a core market segment for IKEA products has been reported. More competitors are entering the low price household and furnishings markets. IKEA needs to reinforce its unique qualities to compete with these economic factors the recession slows down consumer spending and disposable income reduces. IKEAs passion combines design, low prices, economical use of resources, and responsibility for people and the environment. The companys products, processes and systems all demonstrate its environmental stance. For example, clever use of packaging and design means more items can fit into a crate, which means fewer delivery journeys. This in turn reduces IKEAs carbon footprint. IKEA believes that there is no compromise between doing good business and being a good business. It aims to go beyond profitability and reputation. IKEA is intent on becoming a leading example in developing a sustainable business. This will create a better everyday life for its customers. IKEA has discovered a business truth being sustainable and responsible is not just good for customers and the planet, it is also good for business!

Questions:

1)

Conduct a SWOT analysis of IKEA

[16]

2)

Identify the growth strategies that IKEA has been pursuing.

[15]

3)

Which generic strategy has been adopted by IKEA? Justify your answer. [9]

SECTION A: STRUCTURED QUESTIONS (60 marks) Answer any 4 questions.

1.

Discuss the relevance of a gap analysis in marketing planning.

[15]

2.

Outline the strategies available to firms which are not seeking to grow [15] their firms but want to strengthen their position within the industry. Provide relevant examples.

3.

To understand the competitive nature of markets, firms use a market [15] analysis approach. Briefly describe the steps involved in market analysis.

4.

Briefly explain the role of sponsorship as a marketing communications [15] strategy and identify factors that need to be considered before sponsoring an activity.

5.

Using your knowledge of the Product Life Cycle (PLC) curve, advise a company on the marketing mix to be adopted for a product which is in the maturity stage.

6.

Discuss the role of intermediaries in the distribution mix of an [15] organisation.

Please turn to page 3

SECTION B: CASE STUDY (40 marks) Read the case study and answer the following questions.
Enterprise More than 55 years ago, in 1957, Enterprise was founded by Jack Taylor, an entrepreneur, in Missouri, USA. Starting with just seven cars he invested his money and ideas into Executive Leasing, which later became Enterprise. Since then the company has become the largest car rental company in North America, and arguably the world, with annual revenues of $14.1 billion and 68,000 employees in 2011. Enterprise Rent-A-Car is an internationally recognised brand, operating within the United States, Canada, the UK, Ireland and Germany. It currently has more than 7,000 rental offices in five countries. In 1957 Jack Taylor was a 35 year-old sales manager interested in the unheard-of practice of leasing cars. This was then a new and affordable alternative to running a car. Jack Taylors background in the US Navy made him realise the importance of taking care of those around you. His motto was, Take care of your customers and employees, and the profits will follow. Customer service and good employee relations therefore became the cornerstone of the business. It was this that helped the business to grow. From 1957 1993 Enterprise concentrated on expanding its operations across the USA. In this time it opened over 1000 rental branches. Throughout the 90s Enterprise developed into markets in Canada, the UK, Germany and Ireland. In the car rental business, as all organisations are providing a similar product, a key factor that differentiates one organisation from another is the quality of the service that is provided for customers. Enterprises dramatic growth strategy has been made possible through its high level of customer service. By listening to its customers, it is able to provide greater satisfaction, with employees being a vital part of that process. In response to customer needs, Enterprise opened its first on-airport location in 1995. The demand for this service was so great that by 2005 Enterprise had over 200 on-airport branches. This meant that Enterprise kept ahead of its competitors and increased its market share. Growth strategies have helped Enterprise to develop services in a market where it was already an established and profitable business, for example Pick-up service. This helped to lead the market in this product offering. Enterprises Flex-E-Rent service (a long term vehicle rental solution designed to meet the growing needs of todays businesses) and its Business Rental Programme (offering customers a bespoke programme with special pricing) are further services that have been introduced for its initial market. These have widened its service range to improve the customer experience and strengthened its brand identity. Factors in the external environment affect decisions about growth strategies. These are things taking place outside the business that influence decisions within the organisation. Governments around the world are committed to reduce global warming through more ecofriendly technologies, while consumers are looking for different mobility solutions. Enterprise therefore created WeCar, a membership carsharing programme which offers customers a car at an affordable hourly rate. It typically uses fuel-efficient vehicles or hybrids to help address concerns about the environment.

Car sharing or hourly car rental can also help to reduce the number of cars on the road. In this way, WeCar members help to contribute to a cleaner environment. Enterprises activities are polycentric. This means that some services are only offered in certain markets. For example, Rent-A-Car is operated in all markets globally. WeCar is operated in the UK and the USA and Flex-E-Rent is only available in the UK. Car Sales was established by Enterprise in 1962. This business involves selling used cars to both the public and businesses. It is now one of the largest sellers of used cars in the USA. In 1974 Enterprise purchased Keefe Coffee Company, which later developed as the Centric Group. In 1977 Enterprise invested in Mexican Inn Chili Products. However, the company had little experience of both the packaged goods industry and the packaged food business. Poor sales and a guaranteed buy-back arrangement with retailers (where unsold goods could be returned) meant that the business did not make a profit. Therefore the company sold the business but learned a lot from the experience. Then Enterprise acquired the TRG Group which is a leading manufacturer of luggage, backpacks and travel accessories. While strategies change, one aspect of the business has remained in place at Enterprise. This is a continued focus on high levels of customer service and employee relations. This strategy has enabled Enterprise to enjoy continued growth for more than 55 years and the prospect of further growth in the future.

Questions:

7.

Discuss the environmental factors that Enterprise has taken in [15] consideration to grow its business.

8.

Identify and explain the growth strategies that Enterprise has pursued. [15] Please justify your answer.

9.

Explain how a high level of customer service has enabled Enterprise to [10] enjoy a continued growth for more than 55 years.