Design A Business Proposal
Design A Business Proposal
This is a sample OCR-set assignment which should only be used for practice.
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Contents
Last year you started a new business called Trendz Trainers with three of your friends, and the four of
you now co-own the business. The business designs and produces fashion trainers which are then sold
online and from a small retail outlet.
The number of sales has grown steadily since the business started and you are now ready to
expand your product range. As the person responsible for marketing and design, you need to
carry out market research to come up with a new exciting trainer design.
Confidential forecast:
Trendz Trainers estimated fixed costs per month allocated to the £5, 000
new design:
Average variable costs per unit to produce:
UK 1-5 £15.00
UK 6-8 £20.00
UK 9-11 £25.00
UK 1-5 £7.00
UK 6-8 £13.00
UK 9-11 £19.00
UK1-5 £3.00
UK 6-8 £7.00
UK 9-11 £11.00
UK 3-5 £4.00
UK 6-8 £7.00
UK 9-11 £10.00
UK 3-5 £2.00
UK 6-8 £4.00
UK 9-11 £6.00
Buttons £0.30
Read through all of the tasks carefully, so that you know what you will
need to do to complete this assignment.
Important:
You will need to refer to the marking criteria grid. Your teacher can explain the marking criteria if
you need further clarification.
You will need to draw upon relevant skills/knowledge/understanding from other units you have
studied in this qualification.
You must carry out market research by creating three market research tools which you will use to gain the
views of others, in order to develop your proposal in later tasks. Your market research must relate to the
business challenge.
Your market research results should help you to identify your target customers and help you design your
trainers to meet their needs.
You must:
Explain the overall aims of your market research.
Choose appropriate market research tools that will help you to achieve the research aims. You
should choose two primary and one secondary market research tool.
Select your sampling method(s). Give reasons for your selection.
Create your three chosen market research tools. You must be able to collect both quantitative and
qualitative data.
Carry out your market research.
Collate your market research findings. Select and use the most appropriate method(s) to present the
results.
Review the results of your completed market research.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from Unit
R067 TA2 and R068 TA1.
Task 1 Tips
Think carefully about what you need to find out, i.e. the aims of your research, before you create your
market research tools.
You can include your target customer preferences in your market research questions as this will help
you to identify your customer profile in Task 2.
Think about which sampling method is likely to provide you with the most useful findings. This won’t
necessarily be the easiest method to carry out.
Clearly reference any secondary research source(s).
When reviewing the results of Task 1, consider your initial market research aims.
Creates market research tools Creates three mostly effective Creates three
with limited effectiveness, market research tools, comprehensive, accurate and
resulting in completed resulting in completed fully effective market research
research outcomes with research outcomes with some tools resulting in completed
limited relevance to the aims. relevance to the aims. research outcomes that are
fully relevant to the aims.
Collates the results and uses Collates the results and uses Collates the results and uses
basic method(s) to briefly mostly effective method(s) to effective method(s) to present
present the research present the research the research outcomes.
outcomes. outcomes.
Limited review of the collated Sound review of the collated Comprehensive review of the
results. results. collated results.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.
Before you can design your trainers you need to use your market research findings to identify your customer
profile.
You must:
Referring to your market research findings, apply your knowledge of market segmentation to create
and describe your customer profile.
Justify your customer profile decision with reference to your market research findings.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from Unit
R067 TA2.5 and R068 TA2.
Task 2 Tips
If you have clearly presented your market research findings in Task 1, this will help you to identify
and justify your customer profile.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.
You are required to create a design for your trainers. Your drawing skills will not be assessed.
You must:
Use your customer profile and the findings from your completed market research to create the outline
of the design mix for your new trainers.
With reference to your market research findings and your customer profile, give reasons for the
design mix that you have chosen.
Using your design mix generate two product design ideas. You must provide evidence of using a
different creative technique for each product design idea. You will need to select an outer material, a
lining and at least two accessories from the list provided on pages 4 - 5. You should remember to
include the sole in your product design.
For one of your design ideas, describe how you have used your design mix and market research
findings to inform the design.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from R068
TA3.
Total marks for Task 3: 9 marks
Task 3 Tips
The design mix is an overview of what you are planning to create. The product design idea you use
to describe your use of the design mix/market research findings does not have to be your final choice
for your product proposal.
The final design you choose will be selected in Task 4.
Think carefully about your market research findings/customer profile and what your potential
customers have said they would like a trainer design to include and/or look like. Your drawing skills
will not be assessed.
Consider what you are spending on materials as this may have an impact on the financial viability of
your design proposal. You will consider your costings in Task 5.
Limited description of how the Sound description of how the Comprehensive description of
design mix and market design mix and market how the design mix and market
research findings have research findings have research findings have
informed one of the designs. informed one of the designs. informed one of the designs.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.
You have now produced two possible designs for your trainers. It is important for you to review the designs,
using a range of feedback methods, to ensure that it will be popular with your target customers.
You must:
Produce a self-assessment of both designs.
Obtain verbal and written feedback on your designs from different individuals (e.g. interviews and
questionnaires).
Identify the strengths and weaknesses of your design proposals based on the feedback received.
Create your final trainer design by modifying one of your designs, clearly labelling the alterations that
you have implemented.
Explain the reasons for choosing the final trainer design, making reference to the design mix.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from Unit
R068 TA3.2.
Task 4 Tips
Be honest with yourself in your self-assessment. You do not have to say that everything is perfect.
Being critical will help you to modify your design appropriately.
Feedback does not need to cover all of the methods (focus groups, questionnaires etc.) listed in the
unit.
Make sure that you obtain feedback from people who fit your customer profile. They are likely to give
you the most helpful feedback.
Use the feedback that you have received and your self-assessment to explain why you have chosen
your final design. You should make reference to the aesthetics and function elements of your design
mix, as well as the feedback received.
Basic reasons for choosing Some explanation of the The reasons for choosing the
the final design are provided. reasons for choosing the final final design are fully justified.
design is given.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.
Using the financial information provided in the scenario, you need to produce realistic costings, calculate
break-even and recommend a pricing strategy for your business proposal.
Part One
You must:
Identify all relevant costs and calculate the total variable costs per pair of trainers.
Predict the number of pairs of your trainers Trendz Trainers may sell in the first month. Give reasons
for your decision.
Recommend a pricing strategy and a selling price which are appropriate for your chosen trainer
design and customer profile. Give reasons for your decision.
Complete the following calculations:
Predicted total costs for the first month.
Predicted revenue for the first month.
Predicted total profit for the first month.
Part Two
You must:
Calculate the break-even level of sales. Describe what the results show.
Describe the potential impact on the break-even level of sales of a change in price. Consider the
impact this could have for the business proposal.
Use all of your calculations to evaluate the financial viability of your business proposal.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from Unit
R067 TA3 and R068 TA4
Task 5 Tips
Work through all of your calculations slowly and carefully. This may improve the accuracy of your
work.
When completing your calculations, don’t forget fixed costs.
When predicting the likely number of pairs of trainers that will be sold in the first month, you should
make your prediction realistic for a new product/small business.
In your evaluation of the financial viability of your proposal, you could think about what you could
change if you are not currently predicted to break-even or make a profit, e.g. your selling price and/or
your material costs.
Your evaluation could make reference to the economic manufacture element of the design mix.
Topic Area 4: Review whether a business proposal is financially viable - Part One
Predicts a number of units sold Predicts a number of units sold Predicts a number of units sold
in the first month showing in the first month showing in the first month showing
no/basic reasoning. sound reasoning. detailed reasoning.
Selects a pricing strategy and Selects an appropriate pricing Selects an appropriate pricing
selling price for the product strategy and selling price for strategy and selling price for
design. Reasoning has the product design. Reasoning the product design. Reasoning
no/limited reference to the has some reference to the is clearly focused on the
identified customer profile. identified customer profile. identified customer profile.
Calculates the predicted total Calculates the predicted total Calculates the predicted total
costs and predicted total profit costs and the predicted total costs and predicted total profit
for the first month with limited profit for the first month with for the first month accurately.
accuracy. some accuracy.
Topic Area 4: Review whether a business proposal is financially viable - Part Two
The financial viability of the Adequate evaluation of the Full evaluation of the financial
business proposal is assessed financial viability of the viability of the business
with limited accuracy and business proposal. proposal.
detail.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.
Task 6 – Review factors that may impact the success of the business proposal
Topic Area 5 is assessed in this task.
You should carry out an assessment of the risks and challenges that are associated with producing your
new trainer design.
You must:
Explain the risks and challenges that Trendz Trainers may face when producing and launching your
new trainer design.
Evaluate the impact of the risks and challenges on the success of your business proposal and how
the impact of these risks and challenges could be minimised/overcome.
You should demonstrate your ability to draw upon relevant skills, knowledge and understanding from Unit
R068 TA3, TA4 and TA5.1.
Additional research may help you to produce a detailed assessment of the risks and challenges that
Trendz Trainers might face when producing and launching your new trainer design.
Risks and challenges are those listed in R068 5.1.1 which includes the impact of external factors.
Basic links made between the Adequate evaluation of the Fully evaluates the impact that
business proposal and risks impact that risks and risks and challenges faced
and challenges faced with challenges faced may have on may have on the success of
limited explanation. Little/no the success of the business the business proposal.
reference made to how these proposal. Some reference Detailed reference made to
risks and challenges could be made to how these risks and how these risks and
minimised/overcome. challenges could be challenges could be
minimised/overcome. minimised/overcome.
If your work does not meet Mark Band 1 criteria, you will be awarded zero marks for this task.