Mark Scheme (Results)

Summer 2024

Pearson Edexcel GCE AS Level

In Business (8BS0)

Paper 01 Marketing and People

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Summer 2024
Question Paper Log Number P75849A
Publications Code 8BS0_01_2406_MS
All the material in this publication is copyright
© Pearson Education Ltd 2024
General Marking Guidance

• All candidates must receive the same treatment. Examiners

must mark the first candidate in exactly the same way as they
mark the last.
• Mark schemes should be applied positively. Candidates must be
rewarded for what they have shown they can do rather than
penalised for omissions.
• Examiners should mark according to the mark scheme not
according to their perception of where the grade boundaries may
lie.
• There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
• All the marks on the mark scheme are designed to be awarded.
Examiners should always award full marks if deserved, i.e. if the
answer matches the mark scheme. Examiners should also be
prepared to award zero marks if the candidate’s response is not
worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide
the principles by which marks will be awarded and
exemplification may be limited.
• When examiners are in doubt regarding the application of the
mark scheme to a candidate’s response, the team leader must
be consulted.
• Crossed out work should be marked UNLESS the candidate has
replaced it with an alternative response.
Question
Answer Mark
Number
1(a) Knowledge 2

Knowledge/understanding: of market research, e.g.

• Collecting data (1) to enable the business to understand

customer needs and wants/through primary or secondary (2)
methods (1)

Question
Answer Mark
Number
1(b) Knowledge 2

Knowledge/understanding: demand, e.g.

• The amount consumers are willing and able to buy (1)

at a particular price (1) (2)

Question
Answer Mark
Number
1(c) Knowledge 1, Application 3

Quantitative skills assessed:

QS1: Calculate, use and understand ratios, averages and

fractions

QS2: Calculate, use and understand percentages and percentage

changes

Knowledge: 1 mark for the formula

• income elasticity of demand = % change in quantity

demanded/% change in income

Application: up to 3 marks

• Calculate % change in quantity demanded

= (146m-74m)/74m) x 100

= 97.30% (1)

• Calculate income elasticity of demand

= 97.30%/2.31% (1)

= 42.12 (1)

NB: If the only answer given is 42.12 award 4 marks. If the

answer given is 42.1 or 42.12% award 3 marks (4)
Question
Answer Mark
Number
1(d) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for understanding

product life cycle e.g.

• The product lifecycle illustrates sales of a product over its

lifetime/introduction, growth, maturity, decline (1)
OR
• The growth stage of the product life cycle is when the
product gains popularity and sales start to increase (1)

Application: up to 2 marks for contextualised examples,

e.g.

• Oat milk sales grew from £74m in 2019 to £146m in

2020

• Oatly has invested in interesting and unusual

marketing

Analysis: 1 mark is available for explaining how marketing

decisions could be affected, e.g.

• The growth phase of the product lifecycle is supported (4)

by increased investment in marketing
Question
Indicative content Mark
Number
1(e) Knowledge 2, Application 2, Analysis 2, Evaluation 2

• Income elasticity of demand measures the

responsiveness of demand to a change in consumer
incomes

• Oatly has a positive income elasticity of demand,

42.31, demonstrating that it is a luxury good and
demand is likely to fall if incomes fall
• An expected change in income, caused by recession or
another lockdown, could result in consumers spending
less on luxuries despite having the necessary income,
increasing the income elasticity of demand.

Potential counterbalance

• Some consumers may view Oatly as a necessity,

rather than a luxury, as they may have an intolerance
to cow’s milk resulting in lower income elasticity of
demand
• A carton of oat milk is likely to be a small proportion of
consumer income, so income elasticity of demand may
become more income inelastic. (8)

Level Mark Descriptor

0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–5 • Accurate knowledge and understanding.
• Chains of reasoning are presented, showing cause(s)
and/or effect(s) but may be assertions or incomplete.
• An attempt at an assessment is presented using
quantitative and/or qualitative information.
• Supported throughout by use of the business
behaviour/context, though unlikely to show the
significance of competing arguments.
Level 3 6–8 • Accurate and thorough knowledge and understanding.
• Logical chains of reasoning, showing cause(s) and/or
effect(s).
• Assessment is balanced, well contextualised, using
quantitative and/or qualitative information.
• Supported throughout by relevant and effective use of
the business behaviour/context, and shows an
awareness of competing arguments/factors including
supported judgement.
Question
Indicative content Mark
Number
1(f) Knowledge 2, Application 2, Analysis 3, Evaluation 3

• Secondary market research is information that has

already been collected by another
business/organisation for another purpose

• Secondary research companies may collect large

amounts of data about the general population and the
plant-based milk market. This may not answer specific
questions which Oatly want answered, such as the
type of milk consumers use when making cappuccinos
• Market research reports from Mintel can be expensive
and may also be out of date in this fast changing
market. This could increase Oatly’s costs without a
corresponding increase in sales from using data that is
no longer valid.

Potential Counterbalance

• Secondary market research can provide a large

amount of data quickly, which could allow Oatly to
make investment and marketing decisions more
quickly to keep up with trends
• Primary market research can be time consuming,
which may result in information not being collected in
a timely manner so that Oatly can’t respond to rapid
changes in the dynamic market.

Potential Judgement

• The Mintel report could allow the Swedish company to

quickly gain valuable insight into the UK milk market,
which could help them adapt to changes. However,
other oat milk producers, such as Alpro, may also have (10)
access to the same information.
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–4 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Chains of reasoning are presented, but may be
assertions or incomplete.
• A generic or superficial assessment is presented.
Level 3 5–6 • Accurate and thorough knowledge and understanding.
• Analytical perspectives are presented, with developed
chains of reasoning, showing cause(s) and/or effect(s).
• An attempt at an assessment is presented using
quantitative and/or qualitative information.
• Supported throughout by use of the business
behaviour/context, though unlikely to show the
significance of competing arguments.
Level 4 7–10 • Accurate and thorough knowledge and understanding.
• A coherent and logical chain of reasoning, showing
cause(s) and/or effect(s).
• Assessment is balanced and well contextualised, using
quantitative and/or qualitative information.
• Supported throughout by relevant and effective use of
the business behaviour/context, and shows an
awareness of competing arguments/factors leading to
a supported judgement.
Question
Answer Mark
Number
2(a) Knowledge 2

Knowledge/understanding: of product portfolio, e.g.

• The range of products/services (1) sold/marketed by a (2)

business (1)

Question
Answer Mark
Number
2(b) Knowledge 2

Knowledge/understanding: of market share, e.g.

• The percentage of sales one company makes (1)

compared to others in the market (1)

or

• (Sales of company X/Total sales in the market) x 100 (2) (2)

Question
Answer Mark
Number
2 (c) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for understanding

private limited company, e.g.

• a business with limited liability which is owned by

shareholders that are friends and family.

Application: up to 2 marks for contextualised examples,

e.g.

• Jamie Keeble could sell shares to other member of his

family to raise the £3.5m to expand the North
Yorkshire site
• Having limited liability could reduce the risk for Jamie
and his family if the launch of Bangin’ Bites is
unsuccessful.

Analysis: 1 mark is available for explaining a consequence,

e.g.

• If the business fails due to the investments being

unsuccessful the Keeble family would not lose any
personal assets, only the money invested in the
business. (4)
Question
Answer Mark
Number
2(d) Knowledge 1, Application 2, Analysis 1

Knowledge/understanding: 1 mark for understanding of

strong brand, e.g.

• A recognisable name/symbol/logo associated with a

product.

Application: up to 2 marks for contextualised examples,

e.g.

• Could help HECK! stand out from other branded

sausages like Wall’s and Richmond
• Could differentiate its ‘grab and go’ snacks from other
snacks sold and Tesco.

Analysis: 1 mark is available for explaining a consequence,

e.g.

• This could lead to young people choosing to buy

Bangin’ Bites over other snack options, leading to
increased sales and improving the 58% market share.
(4)
Question
Indicative content Mark
Number
2(e) Knowledge 2, Application 2, Analysis 2, Evaluation 2

• Entrepreneurial roles (include two of the following):

creating and setting up a business; running a
business; expanding a business; innovation;
anticipating risk and uncertainty.

• Jamie created the premium sausage business in 2015

and his hands-on approach to creating a premium
brand has led to HECK! gaining 58% market share,
demonstrating his success against other major brands
such as Richmond and Wall’s sausages
• Jamie has innovated by created Bangin’ Bites to
expand the company’s portfolio and access the ‘grab
and go’ market to provide another revenue stream
adding to the success of the HECK! brand
• Jamie continues to expand the North Yorkshire site, so
that the company can grow its own herbs and
vegetables to use in its sausages. This could reduce
costs and increase profit leading to greater success.

Potential Counterbalance

• Creating the business may not have led to HECK!’s

success without the continued innovation to keep
customers interested in sausage products and to gain
new customers such as the younger ‘grab and go’
market
• The strength of the existing HECK! brand, which
helped the company gain a 58% market share may be
more important than taking risks and innovating in
new markets, such as ‘grab and go’ snacks
• Taking the risk of investing £3.5m in the expansion of
the North Yorkshire site could significantly increase
costs and may not lead to an increase in revenue. This
could result in HECK! making a loss. (8)
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–5 • Accurate knowledge and understanding.
• Chains of reasoning are presented, showing cause(s)
and/or effect(s) but may be assertions or incomplete.
• An attempt at an assessment is presented using
quantitative and/or qualitative information.
• Supported throughout by use of the business
behaviour/context, though unlikely to show the
significance of competing arguments.
Level 3 6–8 • Accurate and thorough knowledge and understanding.
• Logical chains of reasoning, showing cause(s) and/or
effect(s).
• Assessment is balanced, well contextualised, using
quantitative and/or qualitative information.
• Supported throughout by relevant and effective use of
the business behaviour/context, and shows an
awareness of competing arguments/factors including
supported judgement.
Question
Indicative content Mark
Number
2(f) Knowledge 2, Application 2, Analysis 3, Evaluation 3

• Market segmentation involves dividing a market into

groups based on similar characteristics, e.g. age,
gender, income, ethnicity, tastes

• Dividing the market into groups based on age could

allow HECK! to develop sausages that appeal to each
group. For example, conducting market research to
identify young people’s needs and wants when buying
snacks on the go, this could lead to more sales of
HECK!’s Bangin’ Bites
• By segmenting the market, HECK! could tailor its
marketing strategy to each group. For example,
promoting and selling Bangin’ Bites in high street
shops such as WHSmith, Boots and Tesco where the
younger customers may be more likely to shop for
snacks.

Potential Counterbalance

• Tailoring its snacks to a younger segment may result

in HECK! losing sales to older customers who do not
feel that Bangin’ Bites meet their needs, perhaps
because of the flavours offered
• HECK! may have to develop promotions for each
product in their portfolio to aim at different market
segments, such as gluten or meat free. This could
increase costs for the sausage manufacturer.

Potential Judgement

• Although 37% of young people buy snacks rather than

eat a proper meal, this could be a relatively small
segment to target. HECK! may need to target other
market segments, such as different
ages/ethnicities/income groups, who also want snacks
on the go. Tailoring marketing to younger customers
could result in HECK! missing out on sales to other
groups.
(10)
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–2 • Isolated elements of knowledge and understanding –
recall based.
• Weak or no relevant application to business examples.
• Generic assertions may be presented.
Level 2 3–4 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Chains of reasoning are presented, but may be
assertions or incomplete.
• A generic or superficial assessment is presented.
Level 3 5–6 • Accurate and thorough knowledge and understanding.
• Analytical perspectives are presented, with developed
chains of reasoning, showing cause(s) and/or effect(s).
• An attempt at an assessment is presented using
quantitative and/or qualitative information.
• Supported throughout by use of the business
behaviour/context, though unlikely to show the
significance of competing arguments.
Level 4 7–10 • Accurate and thorough knowledge and understanding.
• A coherent and logical chain of reasoning, showing
cause(s) and/or effect(s).
• Assessment is balanced and well contextualised, using
quantitative and/or qualitative information.
• Supported throughout by relevant and effective use of
the business behaviour/context, and shows an
awareness of competing arguments/factors leading to
a supported judgement.
Question
Indicative content Mark
Number
3 Knowledge 4, Application 4, Analysis 6, Evaluation 6

Physical Stores

• By opening more Debenhams physical stores, premium

brands such as Yves Saint Laurent and Chanel may be
willing to allow Debenhams to stock their make-up which
could lead to more customers visiting the stores to buy
eyeshadow or foundation that they cannot get in Boots or
Superdrug
• Debenhams was the second largest beauty retailer in the
UK, this could be because providing a physical store
allowed customers to gain advice from sales assistants on
which skincare suits them best and try the makeup before
buying it, leading to increased customer satisfaction and
customers choosing Debenhams over Boots when
purchasing beauty products
• A physical store could result in customers making impulse
buys while browsing the shelves which could be less likely
when shopping online at stores such as Sephora, this
could lead to an increase in revenue and market share for
Debenhams.

Online

• Selling online could reduce overheads, such as the high

rents paid on high street beauty stores, allowing
investment in promoting its one-stop shop so that it
appears at the top of a google search to attract customers
searching for beauty products online

• Boohoo are keen to provide a one-stop shop for

customers, by selling online customers may be able to
browse a large range of products and could buy clothing
and beauty products in one place. This could be more
convenient than having to visit a physical store for make-
up and then buying clothing separately online. This could
increase customer spend in more than one area of the
business increasing Boohoo’s market share in both fashion
and beauty
• The Debenhams brand already had 300m website visits
per year showing that online shopping is popular amongst
Debenhams’ existing customers. Boohoo could keep these
existing online customers and gain more by providing a
wider range of beauty products on its website than it could
in a physical store. This could lead to customers preferring
Debenhams over high street stores such as Boots.
Potential recommendation

• Beauty products such as skin care and make-up are

usually tailored to particular skin types so the ability for
customers to try before they buy or to gain advice from
trained sales assistants could be important. Particularly
when buying expensive brands such as Chanel.
Debenhams’ physical stores could provide this, helping it
to compete against online beauty retailers, such as
Sephora and Cult Beauty.
• Online retail is a growing market due to its convenience
and other beauty retailers such as Boots and House of
Fraser offer online shopping. By Debenhams marketplace
providing a larger range and premium brands that other
retailers don’t offer, alongside its fashion and homeware
ranges it could appeal to more shoppers.
(20)
Level Mark Descriptor
0 • A completely inaccurate response.
Level 1 1–4 • Isolated elements of knowledge and understanding.
• Weak or no relevant application of business examples.
• An argument may be attempted, but will be generic
and fail to connect cause(s) and/or
consequence(s)/effect(s).
Level 2 5–8 • Elements of knowledge and understanding.
• Which are applied to the business example.
• Arguments and chains of reasoning are presented, but
connections between cause(s) and/or consequence(s)/
effect(s) are incomplete. Attempts to address the
question.
• A comparison or judgement may be attempted, but it
will not successfully show an awareness of the key
features of business behaviour or business situation.
Level 3 9–14 • Accurate and thorough knowledge and understanding.
• Supported throughout by use of the business
behaviour/context.
• Uses developed chains of reasoning, so that cause(s)
and/or consequence(s)/effect(s) are complete,
showing an understanding of the question. Arguments
are developed.
• Quantitative and/or qualitative information are
introduced in an attempt to support judgements, a
partial awareness of the validity and/or significance of
competing arguments and may lead to a conclusion.
Level 4 15–20 • Accurate and thorough knowledge and understanding.
• Supported throughout by use of relevant and effective
use of the business behaviour/context.
• Uses well-developed and logical, coherent chains of
reasoning, showing a range of cause(s) and/or
effect(s). Arguments are fully developed.
• Quantitative and/or qualitative information are used
well to support judgements. A full awareness of the
validity and significance of competing
arguments/factors, leading to balanced comparisons,
judgements and an effective conclusion that proposes
a solution and/or recommendation(s).
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