Practice IB Business Management Topic 4.2 Marketing Planning with authentic exam-style questions for both SL and HL students. This question bank focuses on the exact syllabus content for 4.2 Marketing Planning and mirrors Paper 1, 2, 3 style where relevant.
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LuminaCare
(a) With reference to Resource 3, one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
(b) one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
(e) one reason why creating a marketing plan is useful when launching a new product.
(e) Using the data provided, the profit FrostFuel Ltd. would earn if it sells 10,000 units. Show all your working.
(e) one element of the marketing mix that FlexBottle Ltd. has changed, and how this change may support the product launch.
PureGlow Ltd.
PureGlow Ltd. is a skincare company that sells natural, plant-based beauty products. To support the launch of a new product line, the business used a mix of internal and external sources of finance. It relied on retained profit from previous years and also secured funding from a venture capital firm interested in ethical consumer brands.
The new product range was supported by a marketing plan focused on the premium segment. As part of the plan, PureGlow adjusted elements of its marketing mix, including packaging design and pricing. The company aims to increase market share and improve profit margins in a highly competitive industry.
Table 1 shows selected financial data for the first month after the launch.
Table 1: Financial data for PureGlow Ltd. (Month 1)
| Item | Amount ($) |
|---|---|
| Revenue | 140,000 |
| Cost of sales | 60,000 |
| Expenses | 50,000 |
| Net profit | ? |
(a) two sources of finance used by PureGlow Ltd.
(b) the net profit for the month. Show all your working.
(c) one reason why profit is important for a business like PureGlow Ltd.
(d) one element of the marketing mix that was changed and its potential impact.
FrostFuel Ltd.
FrostFuel Ltd. is a company that produces natural, energy-boosting frozen fruit smoothies. As part of its launch strategy for a new tropical flavour line, the marketing team conducted primary market research using focus groups and in-store product sampling. Based on the results, they developed a marketing plan targeting university students and young professionals in urban areas.
The operations team is choosing between two potential factory sites:
To assess the product's financial viability, the finance team produced the following break-even data based on estimated sales and production costs.
Table 1: Break-even data for FrostFuel Ltd.'s new tropical smoothie
| Item | Value |
|---|---|
| Selling price (SP) | $22.72 per unit |
| Variable cost (VC) | $9.09 per unit |
| Fixed costs (FC) | $30,000 per period |
Output is measured in units per period; costs/revenue are measured in $ per period.
(a) Using the break-even data in Table 1, the break-even level of output and what it represents.
(b) one reason why market research was important before launching the new product.
(c) one factor from the information given that FrostFuel Ltd. should consider when choosing between Location A and Location B.
(d) one way a marketing plan supports a successful product launch.
FlexBottle Ltd.
FlexBottle Ltd. is a sustainable consumer goods company that produces reusable, collapsible water bottles aimed at eco-conscious travellers and students. As the company scaled, it shifted from a flat to a functional organisational structure, appointing department heads to oversee operations, marketing, and finance. However, recent employee feedback from the production department suggests growing dissatisfaction due to a lack of communication and involvement in company-wide decisions.
To prepare for the launch of its latest product — a customisable bottle with modular parts — the marketing team developed a new marketing plan, changing several elements of the marketing mix, including pricing, packaging, and point-of-sale materials. The CEO, known for a laissez-faire leadership style, believes teams work best with minimal interference, though motivation among junior staff appears to be declining.
The finance department has prepared a draft statement of profit or loss for Q1 2024, and tasked the marketing and operations interns with completing the missing values using the available data.
Table 1: Financial data for FlexBottle Ltd. (Q1 2024)
| Item | Amount ($) |
|---|---|
| Units sold | 6,000 |
| Selling price per unit | 8.00 |
| Variable cost per unit | 3.00 |
| Salaries (operations + marketing) | 45,000 |
| Advertising and promotion | 30,000 |
| Logistics and warehousing | 12,000 |
| Office rent and utilities | 18,000 |
| Tax rate | 20% |
| Dividends paid | 8,000 |
Figure 1: Statement of profit or loss (partially completed)
FlexBottle Ltd . Statement of profit or loss for the quarter ended 31 March 2024
(a) how the current organisational structure might affect internal communication at FlexBottle Ltd.
(b) one way the leadership style at FlexBottle Ltd. could affect employee motivation.
(c) Using Table 1, the missing fields of the statement of profit or loss in Figure 1. Show all your working.
(d) on what the completed statement of profit or loss reveals about FlexBottle Ltd.'s cost and revenue structure.
Global Solar Solutions (GSS)
(a) With reference to business management motivation theory, one need that GSS satisfies for rural households requiring solar lighting.
(b) one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
(c) Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.
(c) Using the resources and relevant business management tools and theories, recommend a plan of action for LuminaCare over the next five years. Your plan must make a clear recommendation on financing (choose Series A now, choose the concessional loan now, or propose a staged sequence using both at different times) and your choice.
| Item | $ |
|---|
| Sales revenue | __________ |
| Cost of sales | __________ |
| Gross profit | __________ |
| Expenses: | |
| - Salaries | (45,000) |
| - Advertising and promotion | (30,000) |
| - Logistics and warehousing | (12,000) |
| - Office rent and utilities | (18,000) |
| Profit before tax | __________ |
| Tax (20%) | __________ |
| Profit for period | __________ |
| Dividends | (8,000) |
| Retained profit | __________ |
