NCFE Level 2 Certificate in Business and Enterprise (601/0048/5) Marketing for business and enterprise

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1 External Assessment NCFE Level 2 Certificate in Business and Enterprise (601/0048/5) Marketing for business and enterprise Paper number: THIS IS NOT A LIVE PAPER Assessment window: SAMPLE This booklet should be used for Tasks 2, 3, 4, 5 and 6 only. Centre number Learner number Surname Other names Learner declaration: I confirm that the work contained in this external assessment is all my own work. I have not copied work from anyone else. I have not copied work directly from handouts/internet/textbooks or any other publication. If I have used a quote, then I have referenced this appropriately. Learner s signature: Date: Grade achieved To be completed by the Examiner Time allowed 4 hours to complete Tasks 2, 3, 4, 5 and 6. All the material in this publication is copyright. NCFE

2 Instructions for learners Complete your personal details on the first page You have 4 hours to complete Tasks 2, 3, 4, 5 and 6. After 4 hours you ll hand in your responses to Tasks 2, 3, 4, 5 and 6 and you will not be able to work on them again Write your responses to the tasks in the spaces provided. If you need more space, you may use extra paper. Make sure any extra paper is labelled clearly with your name, centre number and learner number and is securely attached to the appropriate answer booklet If you write your answers using a word processor, you must make sure that any printouts are labelled clearly with your name, centre number and learner number and are securely attached to the appropriate answer booklet If you write your answers using a word processor, you must make sure that you clearly record the relevant task number along with your answer to ensure that the Examiner is able to grade it You MUST attempt all tasks to address all assessment criteria fully. You cannot achieve a pass grade unless you meet the required standard in all the tasks All work you submit must be your own You must sign the learner declaration on the front page of this assessment paper to declare that the work produced is your own At the end of the assessment hand all work over to your Invigilator. Guidance for learners Make sure you re familiar with the assessment criteria and grading descriptors for this unit. These are included along with the tasks in this external assessment paper. If you re aiming for a merit or distinction, it s important that you re familiar with what these grades require as you work through the tasks Read the tasks carefully and make sure that you understand: o what you need to do to complete the assessment o what you need to submit o how much time you need to allow for each task. The Invigilator will explain where you will save your work between each external assessment session. Resources You may use all of the material given within the external assessment paper but no other resources should be taken into the examination room You re not allowed to use the internet during the external assessment All the evidence you submit must be your own work. Make sure all your work is clearly identified with your name, centre number and learner number. 2

3 External assessment - Tasks 2 6 Before you attempt Tasks 2 6 you must read the case study below and relate this to your responses. You may also use your knowledge of other businesses or enterprises to illustrate your responses. Cake Cre8 Cake Cre8 is owned by two cake artists, Joe and Jodha, who love to bake and decorate cakes for all occasions, such as birthdays, weddings, christenings, Christmas and any other special occasion imaginable. They have won many awards. Their cakes start at 50 but can cost anything up to thousands of pounds. Not content with just making designer cakes, Jo and Jodha also teach others how to do it. They hold many cake-decorating classes at their main kitchen in Newcastle upon Tyne and the demand for this is getting bigger and bigger. However, as not everyone can attend these courses, they also run on-line courses and tutorials and these are very popular. They also have a shop next door to their kitchen selling a wide range of cake decorating supplies. These can also be purchased on their website. Customers attending courses and tutorials 10% 35% 25% Corporate clients International students Local individuals Industry professionals 30% Corporate Clients - These customers often hire the venue for team building events - an opportunity for clients to get together and have a bit of fun. International Students These customers often use the courses to network and make new friends or to develop a new skill. 3

4 Local Individuals As with International students, local customers may also attend the course to met new friends or learn a new skill. Industry Professionals These customers are often more interested in the master class or the diploma as they may be looking to enhance their CV. Task 2 You must ensure that your work in Task 2a addresses assessment criterion 2.1. You can refer to the assessment criterion at the end of this question. 2a. Now that you have read a little bit about Cake Cre8 in the space below, identify their target markets. You may want to give reasons why these target markets are suitable for the business.. 4

5 Assessment criteria Pass Merit Distinction 2.1 Identify the various target markets for an organisation Learners will identify the various target markets for an organisation Learners will justify reasons why the various target markets are suitable for an organisation No distinction criteria for this AC You must ensure that your work in Task 2b addresses assessment criterion 2.2. You can refer to the assessment criterion at the end of this question. 2b Cake Cre8 has a number of different target markets. Their needs are different. Compare how their needs are different. 5

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7 Assessment criteria Pass Merit Distinction 2.2 Compare the different needs of the target markets for an organisation Learners will compare the different needs of the target markets for an organisation Learners will compare in detail the different needs of the target markets for an organisation No distinction criteria for this AC 7

8 Task 3 Research and Development Joe and Jodha are keen to continually improve and grow their business. They understand the importance of market research to help them to do this. To increase their knowledge of customers wants and needs, they have used primary and secondary methods to collect both quantitative and qualitative data. This is done through: internet research into similar businesses operating in Newcastle to find out more about their products, services, prices, position within the market and their financial data reading newspapers and magazines and visiting journal websites to see their competitors promotions and special offers interviews using qualitative research to discover customers preferences regarding the prices of their courses and cakes, the content of the courses and their opinions regarding new designs and courses focus groups with loyal customers to discover what they like and any improvements that can be made surveys and questionnaires conducted before and after courses, both on-line and at their Newcastle premises, as well as with customers purchasing supplies on-line and from the store surveys conducted via their Facebook page reports purchased from Mintel which allow them to gain more intelligence into market data, industry changes, competitor profiles, future opportunities and consumer trends. This has helped them to gain lots of valuable information such as: the need for constantly changing designs to meet customer interests. This might, for example, include designs based around latest film releases or fashions an insight into their competitors, potential opportunities and threats and any gaps in the market cake designs that they do not provide but which may prove popular which elements of their courses are least popular. They have used this information to review the products and courses they offer and to make changes to these to more fully meet the needs of customers. 8

9 You must ensure that your work in Task 3 addresses assessment criterion 2.3. You can refer to the assessment criterion at the end of this question. 3. In the space below describe some of the methods Cake Cre8 has used to research their target market. Give as much detail as you can. You may wish to discuss: their use of primary and secondary methods of research their use of quantitative or qualitative data the advantages and disadvantages of the methods used which of these methods Cake Cre8 could use more effectively to identify the needs of their target market. 9

10 Assessment criteria Pass Merit Distinction 2.3 Describe how an organisation would research their target market Learners will describe how an organisation would research their target market Learners will describe in detail how an organisation would research their target market Learners will describe how an organisation would research their target market showing critical judgement 10

11 Task 4 You must ensure that your work in Task 4 addresses assessment criterion 3.1. You can refer to the assessment criterion at the end of this question. PACKAGE PRICE LIST Package One Cake decorating course 1 day Newcastle upon Tyne Beginners, Intermediate, Advanced Package Two 5 Day intensive course Newcastle upon Tyne Beginners, Intermediate, Advanced Package Three On-line packages Basic membership - access to a wide selection on-line tutorials Premium membership access a wider selection of on-line tutorials, plus one new tutorial every month Deluxe membership learn everything you need to know about running a successful cake business PLUS access to all courses Buy a Cake Order one of our designer cakes, made especially for you FROM 165 FROM 700 Free 9.99 a month a month FROM 50 Learn how to make one of our specialist cakes Designs include: 3D dragons, handbags and vintage cars Learn a wide variety of skills and techniques in a fun environment You will create a Designer shoe and handbag cake and learn how to create sugar flowers and models Use these courses to: Help you create cake masterpieces Promote your cake making business Gain tips for holding a wedding cake consultation Understand the basics of running a successful business Many more Visit our website for our full range of designs 11

12 On the previous page you will see Joe and Jodha s price list. This is available on their website, Facebook and Twitter pages and can also be collected from their shop. They believe that their pricing strategy is important to ensure they are competitive. To do this, they have considered the prices offered by the competitors and the use of promotional and penetration pricing to attract customers to the courses. For bespoke cakes or new cakes to the market, they use a price skimming strategy. They continually update their range of cakes, ensuring that they are current and competitive. They understand that some designs have a short life cycle, such as cakes designed around current films, characters or celebrities. To attract local customers, they have placed advertisements in the local newspaper and have distributed leaflets to local households. To attract customers from further afield, they regularly upload some of their tutorials and images onto YouTube and use Pinterest. They keep their website up to date with blogs, sharing cake ideas, new trends and free micro lessons. The website has a link to customer testimonials, sharing positive feedback. Customers can sign up to receive monthly newsletters, keeping them up-to-date with news and offers. The course below (Package 3) has proved to be less popular than the others and has therefore been removed. Package 3 (deleted) Introduction to cake decorating 1 day Newcastle upon Tyne Beginners FROM 155 A beginners course where you will learn how to master the basics such as: using ganache to prepare your cake sugar paste to decorate Package 1 and the on-line tutorials, however, have been a huge success and Joe and Jodha are hoping to increase the number of sessions for Package 1. They also continue to update their on-line tutorials with new designs and techniques. Using the information above, explain the marketing mix for CakeCre8. Give as much detail as you can. You may wish to include in your answer: an explanation of how the marketing mix is different for the different elements of the business the types of pricing used, their product/service and how and where they are promoted and placed. 12

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14 Assessment criteria Pass Merit Distinction 3.1 Explain the marketing mix Learners will explain the marketing mix Learners will explain the marketing mix in detail Learners will explain the marketing mix perceptively 14

15 Task 5 Promotion As well as the methods identified in Task 4, Cake Cre8 also promotes their products/services in well-known wedding and food blogs and in local, national and international magazines. They also use their website and social media pages as a springboard to promote their business and hold many demonstrations at some of the UK s biggest food and drink exhibitions. You must ensure that your work in Tasks 5a address assessment criterion 3.2. You can refer to the assessment criterion at the end of the question. 5 Using your knowledge of social media and the internet, explain the impact that they can have on the promotion of Cake Cre8 s products and services. You may choose to: make comparisons between social media/the internet and traditional methods of promotion discuss the positive and negative impacts that both social media and the internet can have on Cake Cre8. 15

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17 Assessment criteria Pass Merit Distinction 3.2 Explain the impact of social media and the internet on promotion Learners will explore the impact of social media and the internet on promotion Learners will clearly explain the impact of social media on promotion in comparison to traditional methods Learners will explain the positive and negative impacts of social media on promotion Task 6 You must ensure that your work in Tasks 6 address assessment criterion 4.1. You can refer to the assessment criterion at the end of this question. In Tasks 2 5 you have been supplied with lots of information about CakeCre8 and the marketing methods they use. In the space below evaluate the effectiveness of these methods. You may wish to discuss the effectiveness of: their market research their marketing mix. You may also wish to: make recommendations to show where improvements may be made refer to other businesses or enterprises that have used these methods effectively. 17

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19 Assessment criteria Pass Merit Distinction 4.1 Evaluate the effectiveness of different marketing methods Learners will evaluate the effectiveness of the marketing of the business or enterprise methods Learners will coherently evaluate the effectiveness of different aspects of the marketing of the business or enterprise methods. Learners will indicate where improvements may be made Learners will comprehensively evaluate the effectiveness of different aspects of the marketing of the business or enterprise methods. Learners will show critical judgement and indicate where improvements may be made What you need to hand in after your external assessment. At the end of the timed external assessment, you ll hand in the following work to your Invigilator: this external assessment paper any extra paper you have used and securely attached. Make sure that: all your work, including any extra paper, is clearly identified with the task number, your name, your centre number and your learner number you ve signed the learner declaration on the front page of this external assessment paper. Any remaining time left can be spent checking your responses to the tasks. This is the end of the external assessment All material in this publication is copyright 19