A US-owned food exporting business plans to enter the market in Trinidad and Tobago for the first time. The directors have yet to decide whether to sell high- or low-priced products and which type of shops they should sell through. The marketing manager obtained the following data from secondary sources, without leaving his desk - which is why it is sometimes called desk research.

• The two-island republic has one of the highest per capita GDPs in the Caribbean over US $\$20000$ in $2013$.

• GDP grew by $2 \%$ in $2013$.

• The retail market is made up of over 500 stores (supermarkets, grocery stores and petrol stations), with sales estimated at just over US$1 billion in$2013$.

• Aiming for a 'one-stop' shopping experience, many supermarket chains have begun to renovate and remodel their stores.

• The market leader is Hi-Lo Food Stores.

• In-house bakeries and delis are becoming more common.

• Retail food sales rose by nearly$50 \%$between$2000$and$2013$.

• Supermarkets are increasing the number of premium-priced low-fat and healthfood products on offer.

Evaluate the usefulness of secondary research to the US food exporter trying to market its goods in Trinidad and Tobago.

Tube Investments of India is planning to enter the ultra-premium cycle market segment - with price ranges from $\$ 300$ to $\$ 4000$. 'Though the market size is small, we cannot afford to be absent from this segment,' TI Cycles' vice president said. Last year TI Cycles sold $2.8$ million units and the marketing objective for the current year is $3.1$ million units. The company started making electric scooters last year and has already launched BSA Workouts exercise equipment. The ultra-premium bicycles will not add greatly to total sales revenue $-$ but they will help to take the brand upmarket as Indian consumers' incomes increase.

Explain one reason why TI wants to market products in different market segments.

Le Sportif is a health and sports club located in Paris. The club has performed well over the last two years but now faces competition from two clubs, Wellness and Glides, which have just opened. Wellness, which targets high-income professional clients, has been particularly successful and has attracted a number of customers from Le Sportif.

The management of Le Sportif conducted some extensive market research to find out more information about their customers. They used a series of focus groups to find out about customers' views on Le Sportif and a questionnaire to provide them with more precise data about the way customers used the club.

Le Sportif has responded positively to its market research by adopting the following strategies:

• introducing a family membership scheme

• introducing a range of family-based classes to encourage health and fitness

• opening a coffee shop.

The management of Le Sportif believe that this new customer-oriented approach, which targets a niche market of health and fitness for the whole family, will give the club a USP and will enable it to stand out from the competition.

Evaluate the advantages and disadvantages of Le Sportif’s method of differentiating itself from competitors.

Outline three benefits of e-commerce for consumers of foreign holidays.

Outline two examples of qualitative factors that might be considered by an insurance company planning to relocate its offices to a cheaper region, far away from its existing operations.

Tesco Lotus $-$ the brand name used by the European supermarket in Thailand - had $15 \%$ of the supermarket grocery (food) market in $2013$. Total sales in this sector amounted to ${\pounds25}$ billion. Two French-owned companies operating in Thailand were second and third on the list of firms' market shares $-$ Big $\mathbf{C}$ had $7 \%$ and Carrefour $4 \%$. If non-food items are included then Tesco Lotus has $43 \%$ market share. Being market leader gives Tesco Lotus a huge advantage $-$ and it is not standing still. It has plans to both open new stores and enter new markets. Recently, Tesco Lotus entered the fast-growing school-uniform market, worth $\$140$ million a year, with prices $20-30\%$ lower than traditional shops.

This expansion is not without its critics and the new Thai government has taken action to protect locally owned shops and to ensure good consumer choice is maintained. A new law is proposed that would severely restrict the opening of all new foreign-owned stores. Consumer groups are split on the new law - they want to keep the variety offered by local stores, but they enjoy the big stores and low prices too.

Explain two advantages Tesco Lotus might gain from being 'market leader' in Thailand.

Explain the benefits and limitations for a large hotel business of forming a joint venture with a hotel business in country $\mathbf{X}$ with the aim of establishing a new chain of hotels there.

Samsung has added four new Galaxy smartphones to its existing line, designed to deliver an 'exceptional experience at an affordable price'. The new products are targeted at the low-price market segment of the smartphone market where Samsung really wants to grow its market share.

The Galaxy Core II, Galaxy Star $2$, Galaxy Ace $4$ and Galaxy Young $2$ all run Google's Android $4.4$ KitKat system and feature smaller displays and less-powerful processors than the flagship model, the Galaxy S$5$, but they still do a remarkable job and offer the consumer an exceptional experience for the price.

Last week Samsung also announced the specifically fitness-focused Galaxy S$5$ Sport, which will be both dust- and water-resistant. The product is an innovative response to the way smartphone owners use their phones when they are at the gym, out for a run and even cycling. The phones come with new fitness apps which allow you to do things like measure your performance on a running machine or map your ride when you are cycling.

Evaluate Samsung’s decision to target the ‘low-price’ market segment of the smartphone market.

We are a global food and beverage company operating in highly competitive categories and we rely on continued demand for our products. To generate revenues and profits, we must sell products that appeal to our customers and to consumers. Any significant changes in consumer preferences or any inability on our part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position. Our success depends on: our ability to anticipate and respond to shifts in consumer trends, including increased demand for products that meet the needs of consumers who are concerned with health and wellness; our product quality; our ability to extend our portfolio of convenient foods and beverages in growing markets; our ability to develop or acquire new products that are responsive to certain consumer preferences, including reducing sodium, added sugars and saturated fat; developing a broader portfolio of product choices and increasing non-carbonated beverage offerings; our ability to develop sweetener innovation; our ability to improve the production and packaging of our products; and our ability to respond to competitive product and pricing pressures.

Evaluate the advantages and disadvantages for PepsiCo of changing its marketing strategy in response to changes in consumer preferences.

Compare and contrast the marketing of consumer services like hotels with the marketing of consumer goods.

Carlos Sanchez is a chef specialising in Spanish cuisine. He has always wanted to work for himself and has decided to open his own small restaurant. Property prices are too high in the capital, so he has moved to a small coastal resort about $100$ kilometres from the capital. He has many important decisions to make. He is not sure whether Spanish cooking will be popular with the locals and the tourists. He is able to prepare many other types of dishes too. He could open just a restaurant or a takeaway too. If Carlos offers takeaway meals, he could either serve these in plastic containers for microwave heating, which are expensive, or in paper trays, which are cheaper. Carlos has noticed that there are few other restaurants in the area and no takeaways, although one well-known fast-food chain has recently closed down. There are no other Spanish-based restaurants. After finding a suitable shop site, Carlos then has to decide whether to decorate it for younger people's tastes and have loud pop music or in a more sober style with traditional Spanish music.

Evaluate the usefulness of market research to Carlos as he plans his new restaurant.

Apple has announced plans to open more of its own branded stores in the USA and China as it continues to develop this distribution channel. Just a few years ago, the Silicon Valley company, famous for the first popular personal computer in the $1970$s and more recently the iPad Air, always relied on other retailers and its website to sell its ever-growing range of products. The new retail stores are likely to be well received by consumers if recent reports from London and New York are any guide. They will be supported by a varied promotional mix including extensive use of social media.

Some business analysts believe that Apple runs a real risk of coming into conflict with its existing retail partners $-$ including the US chain CompUSA. 'Why should other retail stores bother to sell and promote Apple products if the company is going to compete directly with them on the high street?' said one investment specialist. There are also fears that Apple could fall into the same trap as Gateway, another PC maker focused on the consumer market. Gateway had to close about $40 \%$ of its North American stores, saying it had over-extended itself at a time of slowing sales of PCs. Apple is investing heavily in property and there is always the risk of stock build-up at a time of slower world economic growth. Apple plans to open its two new stores in high-profile shopping centres near Las Vegas in the USA and in the Chaoyang district of China. Apart from selling the usual Apple products $-$ computers, iPads, Apple TV and the like $-$ the main draw in the shops will be the Genius Bar $-$ a counter where shoppers will find several highly trained Mac Geniuses ready to advise on any technical questions. There will be a hands-on Apple Retail Store Experience giving consumers the chance to test-drive Apple's entire product mix. The stores will also run a series of daily creative workshops to teach customers how to make the most of the programs available.

Evaluate the importance of distribution as part of Apple’s overall marketing strategy.

The sales of Rajesh’s convenience store were recorded over a four-year period. The owner of the store has started to undertake a short-term forecasting exercise to help plan future purchases and stocks of goods.

$$\begin{array}{|l|c|c|c|c|c|} \hline & \textbf { Quarter } & \textbf { Sales (\$000) } & \textbf{ Quarterly moving} & \textbf{ Seasonal variation } & \textbf{ Average seasonal } \\ &&& \textbf{ average (trend) } & \textbf{ variation } \\ \hline \text { Year 1 } & 1 & 18 \\ & 2 & 24 \\ & 3 & 35 \\ & 4 & 27 \\ \hline \text { Year 2 } & 1 & 19 \\ & 2 & 26 \\ & 3 & 38 \\ & 4 & 29 \\ \hline \text { Year 3 } & 1 & 23 \\ & 2 & 27 \\ & 3 & 40 \\ & 4 & 32 \\ \hline \text { Year 4 } & 1 & 25 \\ & 2 & 30 \\ & 3 & 42 \\ & 4 & 35 \\ \hline \end{array}$$

Discuss the benefits and limitations of the moving average sales forecasting method for Rajesh.

Explain the advantages primary research has over secondary research.