Assignment front sheetQualificationUnit number title and lev.docx

Assignment front sheet
Qualification
Unit number title and level
BTEC Level 5 HND Diploma in Business
Unit 2: Managing Financial Resources and Decisions
Level : 4
Student name and ID number
Assessor name
Natalie Walker
Date issued
Completion date
Submitted on
12th May 2014
18th July 2014
Assignment title
Managing Financial Resources and Decisions
Learning Outcome
Learning Outcome
Assessment Criteria
In this assessment you will have the opportunity to present
evidence that shows you are able to:
Task no.
Evidence

(page no)
LO1
LO2
Understand the sources of finance available to a business
Understand the importance of financial planning and
information needs.
1.1
Identify the sources of finance available to a business
1.2
Assess the implications of the different sources
1.3
Evaluate appropriate sources of finance for a business project
2.1
Analyse the costs of different sources of finance

2.2
Explain the importance of financial planning
2.3
Assess the information needs of different decision makers
2.4
Explain the impact of finance on the financial statements
LO3
Be able to make financial decisions based on financial
information
3.1
Analyse budgets and make appropriate decisions.
3.2
Explain the calculation of unit costs and make pricing decisions
using relevant information.

3.3
Assess the viability of a project using
investment appraisal techniques.
LO4
Be able to evaluate the financial performance of a business.
4.1
Discuss the main financial statements.
4.2
Compare appropriate formats of financial statements for
different types of business.
4.3
Interpret financial statements using appropriate ratios and
comparisons, both internal and external.
Instructions
· An electronic copy of your assessment must be fully uploaded
by the deadline date and time.
· You must submit one single PDF or MS Office Word
document. Any relevant images or screenshots must be included
within the same MS Office Word or PDF document.

· The last version you upload will be the one that is marked.
Your paper will be marked if you have indicated this as your
final submission.
· Review the mitigating circumstances policy for information
relating to extensions.
· The file size must not exceed 20MB.
· Answer the criteria in order, clearly indicating the pass
criteria number.
· Ensure that all work has been proof-read and checked prior to
submission.
· Ensure that the layout of your documents are in a professional
format with font style Arial, font size 12 for the text, font 14
for sub heading and font 16 for main heading, line spacing 1.5
and justified.
· Use the Harvard referencing system; otherwise it will be
considered as plagiarised work.
· Ensure that you back-up your work regularly and apply
version control to your documents.
· Ensure that any file you upload is virus-free, not corrupted
and not protected by a password otherwise it will be treated as a
non-submission.
· You must NOT submit a paper copy or email of this
assessment to any member of staff at LSST.
· Your work must be original with the appropriate referencing
Learner Declaration
(All students must sign this form before submitting their work)
I declare that:
· This assessment item is my own work, except where
acknowledged, and has not been submitted for academic credit
elsewhere;
· I have acknowledged any use of the published or unpublished

works of other people
· All reasonable care has been taken to ensure that no other
person has been able to copy this work either in paper or
electronic form.
I acknowledge that the assessor of this item may, for the
purpose of assessing this item:
Reproduce this assessment item and provide a copy to another
member of the School; and/or,
Communicate a copy of this assessment item to a plagiarism
checking service (which may then retain a copy of the
assessment item on its database for the purpose of future
plagiarism checking).
Student Name
_____________________
Student ID:
__________________
Signature:
_____________________
Date :
__________________
London School of Science & Technology
BTEC Level 5 HND Diploma in Business-Unit 2: Managing
Financial Resources and Decisions May 2014 8
In addition to the above PASS criteria, this assignment gives
you the opportunity to submit evidence in order to achieve the
following MERIT and DISTINCTION grades
Grade Descriptor

Indicative characteristics
Contextualisation
M1Identify and apply strategies to find appropriate solutions
Effective judgements have been made.
M1:To achieve M , you are required to match the above ratios
(i.e., current ratio, ROCE etc.) to the following interested
parties; suppliers, investors and competitors. Provide clear
justification for your answer. (Task 4)
M2 Select / design and apply appropriate methods / techniques
A range of sources of information have been used.
M2: To achieve M2, state which of the sources explored in 1.3
is a best fit for Fort Sport Ltd. Justify your choice and
selection and explain why you consider this choice to be the
best fit for Fort Sport Ltd’s future plans.
Present your answer clearly in a report format. (Task 1)
M3 Present and communicate appropriate findings
The appropriate structure and approach has been used.
M3: To achieve M3, you will identify the individual needs of
the stakeholders in Fort Sport Ltd. This will be presented in a
suitable business report format (a report or a formal letter) or
comparison table and will include business terminology
accurately.(Task 3)
D1 Use critical reflection to evaluate own work and justify
valid conclusions
Conclusions have been arrived at through synthesis of ideas and
have been justified.
D1: To achieve D1, you will justify the use of investment
appraisal techniques and other financial planning methods in the
process of strategic investment decision making for a business.
(Task 3)

D2 Take responsibility for managing and organising activities
Importance of interdependence has been recognised and
achieved.
D2: Use the draft balance sheet below. Please note that the
balance sheet does not balance. Include a recent loan of £7,000
which will be paid back in 3 years time with a fixed charge of
£1500 per year payable at year end. Show all your calculations
that enables the financial report below to balance.(Task 2)
D3 Demonstrate convergent /lateral / creative thinking
Effective thinking has taken place in unfamiliar context.
D3: To achieve D3, you will explain the differences (and the
importance of this differentiation) between:
i. Current and acid test ratios
ii. Gross profit and net profit (Task 4)
Assignment brief
Unit number, title and level
Unit 2:Managing Financial Resources and Decisions
Level : 4
Qualification
BTEC Level 5 HND Diploma in Business
Date Issued
12th May 2014
Completion date
18th July 2014
Assessor
Natalie Walker
Assignment title
Managing Financial Resources
and Decisions
Purpose of this assignment –
This unit is designed to give learners a broad understanding of
the sources and availability of finance for a business
organisation. Learners will learn how to evaluate these different

sources and compare how they are used. They will learn how
financial information is recorded and how to use this
information to make decisions for example in planning and
budgeting. Decisions relating to pricing and investment
appraisal are also considered within the unit. Finally, learners
will learn and apply techniques used to evaluate financial
performance.
Scenario
You work as a finance manager within the Head Offices of Fort
Sport Ltd.
You have been asked to assist the management team in
preparing and forecasting the company’s expansion. Fort Sport
Ltd is a small private company who began trading in April
2013. The company supplies fitness products online to the
public; specialising in mid range sporting goods and equipment.
In 2014, it wishes to increase its activity in the market and as
such need to identify a variety of options for finance.
Your research has shown that the Bannatyne Group would be
interested in investing in Fort Sport Ltd. This could be an
option for the company and will be something for you to
consider, however, in the event that this investment is not
viable, other options of finance must be explored.
The Bannatyne Group has been keen to enter into a deal of this
nature as market research indicates that internet related
businesses are expected to grow in the UK and globally.
Your line manager has asked you to explore the cost and profit
implications of various sources of finance that would be
available to Fort Sport Ltd. In particular, the executives within
the group want to know what the costs would be if the group
were to accept the investment offer from the Bannatyne Group.
Please use the following case study as a reference:-
http://businesscasestudies.co.uk/beeson-gregory/raising-
finance-for-smes/intr.html#axzz2yDASkv00
Task 1 (This tasks offers you an opportunity to achieve L.O. 1:
1.1, 1.2, 1.3 and M2)

You have been asked to identify a range of sources of finance
available to Fort Sport Ltd. These can include raising funds
through a combination of finance areas. Please identify at least
three sources(1.1).
Completion date: 16th May 2014
You should also assess the implications of your choices: What
are the legal, financial and dilution of control implications
(percentage ownerships); risks of bankruptcy.(1.2)
Completion date: 23rd May 2014
After assessing the possible sources of finance, you must
choose a source(s)that would be appropriate for Fort Sport Ltd.
You are required to:
· evaluate benefits of different sources for Fort Sport Ltd;
· match term of finance to term of project (1.3)
M2:
To achieve M2, State which of the sources explored in 1.3 is a
best fit for Fort Sport Ltd. Justify your choice and selection
and explain why you consider this choice to be the best fit for
Fort Sport Ltd’s future plans.
Present your answer clearly in a report format.
Task 2 (This tasks offers you an opportunity to achieve LO2:
2.1, 2.2, 2.3, 2.4 and D2)
Analyse the financial costs of your chosen sources of finance
for Fort Sport Ltd.(2.1)
With reference to the financial planning of this task, you will

need to explain in a report format why financial planning is
important for the success of Fort Sport Ltd.(2.2)
Assess different information needs for each decision maker
within Fort Sport Ltd: Identify and assess the information that
is needed for a range of decision makers.(2.3)
Completion date: 6th June 2014
Explain how the loan and investments (purchase of ordinary
shares) impacts the balance sheet and income statement(2.4)
D2:
To achieve D2, Use the draft balance sheet below. Please note
that the balance sheet does not balance. Include a recent loan of
£7,000 which will be paid back in 3 years time with a fixed
charge of £1500 per year payable at year end. Show all your
calculations that enables the financial report below to balance.
Assets
£
Fixed Assets
10000
Accumulated Depreciation
1000
Total Fixed Assets
9000
Current Assets
Stock
2500
Debtors

1500
Bank
12500
Total Current Assets
16500
Total Assets Liabilities
25,500
Creditors
3000
Loan
2000
Credit card
750
Total Liabilities
5750
Total Assets - LiabilitiesEquity
19750
Capital
2000
Retained Profit

16250
Total Equity 18250
3.1, 3.2, 3.3,M3 and D1)
Task 3a. Analyse budgets and make appropriate decisions:
The CEO of Fort Sport Ltd has asked you to prepare a Cash
Budget for the four months ending October 2014, and identify
whether the business has a surplus or a deficit. If Fort Sport
Ltd has a surplus, suggest two ways in which it could utilise
this and if it has a deficit, suggest two ways it could deal with
this.(3.1)
The CEO of Fort Sport Ltd has asked you to prepare the Cash
Budget based on the following information:
1. The Bank Balance on 1st July 2014 will be £50,000.
2. Total monthly sales for the four month period ending
October 2014 are forecasted as:
£
July 150,000
August 100,000
Sept 125,000
October 120,000
3. Cash purchases during the relevant period are:
£
July 52,000
August 32,000
Sept 74,000

October 82,000
4. A new supplier has offered Fort Sport Ltd two months
credit starting July 2014; this means that materials bought on
credit in July will be paid for in September and so on. Fort
Sport Ltd plan to make the following credit purchases from this
supplier:
£
July 46,000
August 20,000
Sept 30,000
October 20,000
5. Fort Sports Ltd pay rent of £15,000 per month quarterly in
advance. Payments are due on 1st July, 1st October etc.
6. Other expenses are forecasted as follows:
£
July 10,000
August 15,000
September 20,000
October 20,000
7. Fort Sports Ltd is repaying a bank loan at the rate of
£10,000 per month. The last installment is due in September
2014.
Task 3b.
Fort Sport Ltd is considering selling high quality ‘luxury’
exercise equipment.
Its costs for 500 units are as follows:
Total Direct Cost £20,000
Fixed Cost £10,000
Total Cost £30,000

Fort Sport is currently reviewing its selling prices and is
considering cost-plus pricing based on:
Either a 33.33 % mark-up on cost price (i.e. profit is 33.33 per
cent of cost price)
Or a 20 % return on capital employed.
Fort Sport will choose the method that provides the highest
return.
Fort Sport Ltd has capital employed of £10,000.
Calculate the unit price based on both costing methods, and
select the price you think is most appropriate. Explain why you
think it is the appropriate price.
You may round up your figures to nearest £1 when calculating
your answers. (3.2)
…………………………………………………………………………
………………………………………..
Task 3c.
Fort Sport Ltd has been presented with 3 new product
opportunities. You have been asked to identify which product
the company should produce and sell.
You need to use the Payback Period and Net Present Values
(NPV) for each of the products. Based on the table below,
identify which new product (A, B or C) you would select for
manufacturing and selling by the organisation.
Yr.
Product A
Product B
Product C
0

Investment £50,000
Investment £50,000
Investment £35,000
1 Cash Inflow
£20,000
£23,750
£20,000
2 Cash Inflow
£17,500
£23,750
£15,000
3 Cash Inflow
£25,000
£23,750
£12,500
4 Cash Inflow
£32,500
£23,750
£25,000
Total
£95,000
£95,000
£72,500
The estimated cost of capital is 10% per annum.
Note –The discount factors are as follows:
Year 1 = 0.909
Year 2 = 0.826
Year 3 = 0.751
Year 4 = 0.683

To assist Fort Sport Ltd to make a decision, you are required to
calculate the following for each of the three projects. (3.3)
• Payback period
• The accounting rate of return(ARR)
• The net present value (NPV)
M3:
To achieve M3, you will identify the individual needs of the
stakeholders in Fort Sport Ltd. This will be presented in a
suitable business format (a report or a formal letter) or a
comparison table and will include business terminology
accurately.
D1:
To achieve D1This question relates to 3.3.
Justify the use of investment appraisal techniques and other
financial planning methods in the process of strategic
investment decision making for a business.
4.1, 4.2, 4.3, M1 and D3)
You have been asked to prepare a report for the Managing
Directors of Fort Sport Ltd. They will attend the Bannatyne
Group Head Office to meet with key decision makers in the
venture capitalist department. They have asked you to provide
them with an explanation of the purpose of the Trading Profit
and Loss Account or Income Statements and the Balance Sheet.
How would Fort Sport’s capital appear in the balance sheet and
the income statement? (4.1)
Compare appropriate formats for financial statements for
different business organisations. That is, compare the balance
sheet formats and also compare the income statements/profits

and loss accounts formats. (4.2)
XYZ Ltd runs a chain of small shops and you have just
received the following extracts from the audited accounts for
the period ending 30th September 2013.
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED
30th SEPT 2013
£ 000£000
Sales 800
Cost of goods sold (150)
Gross Profit 650
Wages 400
Other Expenses 20
(420)
Net Profit 230
STATEMENT OF FINANCIAL POSITION AS AT 30 SEPT
2013 (Balance Sheet)
£000£000
Fixed Assets 650
Current Assets
Stock 300
Debtors 100
Bank 280
680
Total Assets 1330
Financed by:
Equity and Liabilities
Share Capital 500
+Net Profit 230
Total equity capital 730

Non-Current Liabilities 150
Current Liabilities
Creditors 450
Total Equity and Liabilities 1330
Required:
(a) Calculate the following accounting ratios for XYZ Ltd:
• Current ratio
• Acid test ratio
• Return on capital employed (ROCE)
• Gross profit margin
• Net profit margin
For each ratio, include the formula in words and your workings
and explain what each ratio measures. (4.3)
Completion date: 4th July 2014
M1:
To achieve M1, you are required to match the above ratios (i.e.,
current ratio, ROCE etc.) to the following interested parties;
suppliers, investors and competitors. Provide clear justification
for your answer.
D3:
To achieve D3, explain the differences (and the importance of
this differentiation) between:
I. Current and acid test ratios
II. Gross profit and net profit
Answer Sheet
Task 1 (L.O. 1: 1.1, 1.2, and M2)
Please type your answer here

Task 2 (LO2: 2.1, 2.2, 2.3, and D2)
Task 3 (LO3: 3.1, 3.2, 3.3, and M3, D1)
Task 4 (LO4: 4.1, 4.2, 4.3, M1 and D3)
(
IMPORTANT
CHECK THAT YOUR ANSWERS MEET THE CRITERIA
COMPLETE THE ASSIGNMENT CRITERIA AS YOU GO
ALONG
DO noT LEAVE THINGS TO THE LAST MINUTE
)
London School of Science & Technology
Assignment
Qualification
BTEC Level 5 HND in Business
Unit 4: Marketing Principles
Level: 4
Student name and ID number
Assessor name

Imad Guenane
Date issued
Completion date
Submitted on
12th May 2014
18th July 2014 12:00 midday
Assignment title
Ben Sherman Marketing Mix
Learning Outcome
Learning Outcome
Assessment Criteria
In this assessment you will have the opportunity to present
evidence that shows you are able to:
Task no.
Evidence
(Page no)
LO1
Understand the concept and process of marketing
1.1
Explain the various elements of the marketing process
1.2
Evaluate the benefits and costs of a marketing orientation for a
selected organisation

LO2
Be able to use the concepts of
segmentation,
targeting and
positioning
2.1
Show macro and micro environmental factors which influence
marketing decisions
2.2
Propose segmentation criteria to be used for products in
different markets
2.3
Choose a targeting strategy for a selected product/service
2.4
Demonstrate how buyer behaviour affects
marketing activities in different buying situations

2.5
Propose new positioning for a selected product/service
LO3
Understand the
individual elements of
the extended
marketing mix
3.1
Explain how products are developed to sustain competitive
advantage
3.2
Explain how distribution is arranged to provide customer
convenience
3.3
Explain how prices are set to reflect an organisation’s
objectives and market conditions

3.4
Illustrate how promotional activity is integrated to achieve
marketing objectives
3.5
Analyse the additional elements of the extended marketing mix
LO4
Be able to use the marketing mix in
different contexts
4.1
Plan marketing mixes for two different segments in consumer
markets
4.2
Illustrate differences in marketing products and services to
businesses rather than consumers
4.3
Show how and why international marketing differs from
domestic marketing
Instructions
· An electronic copy of your assessment must be fully uploaded

by the deadline date and time.
· You must submit one single PDF or MS Office Word
document. Any relevant images or screenshots must be included
within the same MS Office Word or PDF document.
· The last version you upload will be the one that is marked.
Your paper will be marked if you have indicated this as your
final submission.
· Review the mitigating circumstances policy for information
relating to extensions.
· The file size must not exceed 20MB.
· Answer the criteria in order, clearly indicating the pass
criteria number.
· Ensure that all work has been proof-read and checked prior to
submission.
· Ensure that the layout of your documents are in a professional
format with font style Arial, font size 12 for the text, font 14
for sub heading and font 16 for main heading, line spacing 1.5
and justified.
· Use the Harvard referencing system; otherwise it will be
considered as plagiarised work.
· Ensure that you back-up your work regularly and apply
version control to your documents.
· Ensure that any file you upload is virus-free, not corrupted
and not protected by a password otherwise it will be treated as a
non-submission.
· You must NOT submit a paper copy or email of this
assessment to any member of staff at LSST.
· Your work must be original with the appropriate referencing
Learner Declaration

(All students must sign this form before submitting their work)
I declare that:
· This assessment item is my own work, except where
acknowledged, and has not been submitted for academic credit
elsewhere;
· I have acknowledged any use of the published or unpublished
works of other people
· All reasonable care has been taken to ensure that no other
person has been able to copy this work either in paper or
electronic form.
I acknowledge that the assessor of this item may, for the
purpose of assessing this item:
· Reproduce this assessment item and provide a copy to another
member of the School; and/or,
· Communicate a copy of this assessment item to a plagiarism
checking service (which may then retain a copy of the
assessment item on its database for the purpose of future
plagiarism checking).
Student Name
_____________________
Student ID:
__________________
Signature:
_____________________
Date :
__________________
In addition to the above PASS criteria, this assignment gives

you the opportunity to submit evidence in order to achieve the
following MERIT and DISTINCTION grades
Grade descriptor
Indicative characteristic/s
Contextualisation
M1 Identify and apply strategies to find appropriate solutions
Effective judgements have been made.
An effective approach to study and research has been applied.
To achieve M1, you need to identify and apply strategies that
have been explored in 1.1 and explain the various elements of
the marketing mix. Include a demonstration that critical
judgement and an effective approach to the case study and
research has been applied. (Task 1)
OR
To achieve M1, you need to show that effective judgments have
been made in identifying and applying a targeting strategy for a
selected product or service within Ben Sherman (Task 2)
M2 Select / design and apply appropriate methods / techniques
Appropriate learning methods/techniques have been applied.
To achieve M2, you need to demonstrate how macro and micro
environmental factors influence marketing decisions. (Task 2)
OR
To achieve M2, you need to select and apply one of the
elements within the marketing process to the Ben Sherman
company. (Task 1)
OR
To achieve M2, you need to discuss how you would select and
apply appropriate methods within Ben Sherman in order to
sustain a competitive advantage. Use a range of sources such as
textbooks, academic articles, case studies and reliable internet
sources, apply Harvard Referencing throughout. (Task 3)
M3 Present and communicate appropriate findings

Coherent, logical development of principles/concepts for the
intended audience.
Communication is appropriate for familiar and unfamiliar
audiences and appropriate media have been used.
To achieve M3, demonstrate how Ben Sherman uses prices to
reflect its organisational objectives. Present these finding in a
structured and professional report. (Task 3)
OR
To achieve M3, use an appropriate and structured method to
communicate how the marketing of Ben Sherman products have
to be marketed differently in an international market compared
to the domestic market. Your audience for this communication
is Managing Directors. (Task 4)
D1 Use critical reflection to evaluate own work and justify
valid conclusions
Conclusions have been arrived through synthesis of ideas and
have been justified.
Realistic improvements have been proposed against defined
characteristics for success.
To achieve D1, critically evaluate the benefits and costs of
market orientation for Ben Sherman. Form a conclusion and
justify your position. (Task 1)
OR
You need to critically evaluate how buyer behaviour affects
marketing activities in two different buying situations within
Ben Sherman. (Task 2)
D2 Take responsibility for managing and organising activities
Activities have been managed.
To achieve D2. You work as a marketing director for Ben
Sherman and have been asked to investigate how you can best
organise the promotional activities of(Task 2)
D3 Demonstrate convergent /lateral / creative thinking
Convergent and lateral thinking have been applied.

Problems have been solved.
To achieve D3 you will need to demonstrate creative thinking
by illustrating how promotional activity is aligned to achieve
marketing objectives. Please support your answer with
examples and /or the organisation of your choice. (Task 3)
OR
You work as a newly appointed Marketing Manager for an
organisation of your choice. You have been asked to convince
the board on the benefits of global investments.
Present your response using 10-15 slides (excluding references
and appendices). You are expected to address the following
issues:
· The importance of global expansion
· What factors you need to take into consideration when
marketing globally
· The marketing tactics and mix that may be appropriate for
your chosen product/service. (Task 4)
Assignment brief
Unit 4: Marketing Principles
Level : 4
Qualification
Pearson BTEC Level 5 HND Diploma in Business
Date issued
12th May 2014
Completion date
18th July 2014 12:00 midday
Assessor
Imad Guenane
Assignment title

Ben Sherman Marketing Mix
Purpose of this assignment
This is a broad-based unit which gives learners the opportunity
to apply the key principles of marketing. Firstly, the unit looks
at the definitions of marketing and what is meant by a
marketing orientation and the marketing process. Next, learners
consider the use of environmental analysis in marketing and
carry out their own analyses at both macro and micro levels.
They will also investigate the importance of market
segmentation and how this leads to the identification and full
specification of target groups. Learners then consider buyer
behaviour and positioning.
The unit looks at the main elements of both the original and the
extended marketing mix. This includes an introduction to the
concept of the product life cycle, new product development,
pricing strategies, distribution options and the promotion mix.
Finally, learners will develop their own marketing mixes to
meet the needs of different target groups. This includes
considering the differences when marketing services as opposed
to goods. A range of other contexts is examined including
marketing to businesses instead of consumers and the
development of international markets.
Scenario:
Ben Sherman is a globally recognised lifestyle brand.
It has grown from its business beginnings in quality
shirts in Brighton in 1963 and is now sold in 35
countries around the world. It has expanded into
the USA, Europe, and Australasia. In 2004,
Ben Sherman was acquired by the American-based
company, Oxford Industries. This group is an
international apparel design, sourcing and marketing

company that features a diverse portfolio of owned
and licensed lifestyle brands. Throughout the years
high profile customers include musicians, models, actors and
bands, such as Blur, Oasis and the Kaiser Chiefs. The growth of
the brand can be traced through changes in musical taste and
this is a key part of Ben Sherman's marketing strategy.
As a person reading this, you could be a central market segment
of Ben Sherman's target market. A market segment is a group of
people with similar needs or characteristics, such as age, gender
or lifestyle. For example, you may like music, you may like
fashion and you may be willing to spend money on top brands
that deliver the quality and image that you want.
As the company founder Ben Sherman said in 1963: 'Looking
good isn’t important, it's everything’.
Ben Sherman has developed a balanced marketing mix. This is
often referred to as the 4 P”s - product, price, promotion and
place. By getting the mix right, the company ensures that its
products reach the market segments it is aiming the brand at.
This approach helps the business remain competitive and
extends its market share and influence.
The marketing mix is like a cake recipe. Most cakes need the
basic ingredients of eggs, flour, sugar and milk. Ben Sherman
chooses the right combination of each element to satisfy
different customers' needs.
Regarding the product mix; Ben Sherman has to decide whether
to:
· Create a product and then market it to target customers
(product-orientated) or
· Find out what the market wants and then provide it (market-
orientated)

To achieve both, the company produces a wide product range
that appeals to all its target market segments. The range
includes casual clothes, formal wear, denim, footwear and
lifestyle accessories, such as underwear, watches, bags, belts
and fragrances.
A strong brand image ties the product range together. Each
collection has an umbrella theme. In 2007, the product theme
was 'This Sporting Life' and the marketing theme was 'British
music and style'.
In the price mix, Ben Sherman has to assess which markets its
products are aimed at and set a price to match. There are a
number of pricing strategies that a business can use for its
products including:
· Cost based pricing where the selling price is set to cover the
cost of manufacture.
· Market orientated pricing.
Market orientated pricing covers several different approaches:
· Market penetration, where a new product is priced low to
attract a high volume of sales
· Market skimming where a new product has premium pricing to
give high revenues whilst the product is unique in the market
· Premium pricing, where there is a uniqueness and
exclusiveness about the product so that it can command a high
price
· Economy pricing, which tends to be for no-frills, basic
products, where the cost of manufacture and marketing are kept

to a minimum.
In General, Ben Sherman produces mostly medium-price range
products. Its position in the market for clothing is shown on the
product map diagram. The mix of product and price is clearly
evident here. These brands are identifiable by their quality and
style.
Place and distribution Ben Sherman limits where its products
are sold and keeps a tight rein on how they are sold and its
distribution channels including (its own stores, independent
fashion stores and department stores. This creates a unique Ben
Sherman experience wherever customers buy its products.
Promotion: Ben Sherman uses both above-the-line and below-
the-line promotion to help inform customers about its products.
Through this information, it increases the customers' desire to
buy its products. The 'above-the-line', which is using
independent media to reach a wide audience easily, but over
which the company may have limited control, for example,
magazine advertising. This reaches a mass audience but can be
hard to measure its impact. The 'below-the-line', which uses
media over which the business has control, for example direct
mailing. This type of promotion can be more cost-effective and
give more measurable response rates. Ben Sherman promotion
activities includes: direct mail, exhibitions or events, sales
promotions, public relations, sponsorship product placement and
branding.
In conclusion, Ben Sherman's continuing global growth and
high profile in music and fashion demonstrates that, its
responsiveness to changing tastes in fashion and music
throughout the last fifty years has provided it with a unique
heritage of quality, personality and style. This has made Ben
Sherman into a great British icon, reflecting British culture as it
does business across the world.
Reference:

The Times 100 (1995-2014) Using the marketing mix in the
fashion industry. A Ben Sherman Case Study. [Online].
Available from: http://businesscasestudies.co.uk/ben-
sherman/using-the-marketing-mix-in-the-fashion-
industry/promotion.html#axzz30vYB9kQS The Times 100.
McKenna, N. (2011) The Marketing Mix and Ben Sherman Case
Study. Analyse Promotional Techniques. [Online]. Available
from:
http://fashionbrandmanagement1.blogspot.co.uk/2011/11/market
ing-mix.html Mc Kenna.
Task 1: Understand the concept and process of marketing
(This tasks offers you an opportunity to achieveL.O.1: 1.1, 1.2
and M1, M2 & D1)
The marketing process consists of various elements. Explain the
marketing process.(1.1)
Guidelines
You are required to include the following in formulating you
answer:
Market audit, integrated marketing, environmental analysis,
SWOT Analysis and marketing objective.
Businesses can develop new products based on a marketing
orientated approach. What benefits and costs are associated with
this approach for Ben Sherman? (1.2)
Guidelines
You are required to include the following in formulating your
answer: Desired quality, service and customer care,
relationship marketing, customer retention, customer
profitability and costs of too narrow marketing positioning.

To achieve M1: You need to identify and apply strategies that
have been explored in 1.1 and explain the various elements of
the marketing mix. Include a demonstration that critical
judgement and an effective approach to the case study and
research has been applied.
To achieve M2: You need to select and apply one of the
elements within the marketing process to the Ben Sherman
company.
To achieve D1: Critically evaluate the benefits and costs of
market orientation for Ben Sherman. Form a conclusion and
justify your position.
Task 2 Be able to use the concepts of segmentation, targeting
and positioning
You need to include the following in formulating your answer:
Macro: environmental scanning, political, legal, economic,
socio-cultural, ecological and technological factors, micro:
stakeholders, direct and indirect competitors and Porter’s Five
Forces.
Looking at market segmentation principles, propose
segmentation criteria to be used in Ben Sherman for its products
in different markets. (2.2)
Guidelines
You are required to include one of following in formulating
your answer: Geographic, demographic, psychographic and
behavioural and evaluation of segments.
Select a product/service from the Ben Sherman range and
propose an appropriate targeting strategy to help boost sales for
Ben Sherman. (2.3)

Guidelines
You are required to include at least one of the following in
formulating your answer:
Undifferentiated (mass) marketing, differentiated (segmented
marketing), concentrated (niche) marketing and Micro
marketing-(local or individual marketing).
Buyer behaviour affects an organisation’s marketing activities.
Provide two examples of different buying situations within Ben
Sherman. (2.4)
Guidelines
You are required to include two of the following in formulating
your answer:
Environmental influences, personal variables-demographic,
sociological, psychological, motivation, social factors,
physiological stimuli, attitudes, other lifestyle and life cycle
variables, consumer and organisational buying.
Propose new positioning for one product/service within Ben
Sherman. (2.5)
Guidelines
State how the new positioning strategy influences the marketing
mix factors, value positioning and positioning statement.
To achieve M1: You need to show that effective judgments have
been made in identifying and applying a targeting strategy for a
selected product or service within Ben Sherman.
To achieve D1: You need to critically evaluate how buyer
behaviour affects marketing activities in two different buying
situations within Ben Sherman.

Task 3 Understand the individual elements of the extended
marketing mix
(This tasks offers you an opportunity to achieveL.O.3: 3.1, 3.2,
3.3, 3.4, 3.5 and M2, M3, D2 & D3)
Certain products develop and sustain a competitive advantage
over a long period of time. Explain how one of Ben Sherman’s
products has achieved competitive advantage. (3.1)
Guidelines
answer: Explain how one of Ben Sherman’s products has
achieved competitive advantage including how they have used
research and development and new product development.
Customer convenience is a very important concept in marketing.
Using the case study, explain how Ben Sherman’s distribution is
arranged in a particular way to facilitate this. (3.2)
Guidelines
Customer convenience and availability, integration and
distribution systems, franchising, physical distribution
management and logistics and channel selection.
Completion date:13th June 2014
An organisation’s objectives dictate how prices are set to
balance and match with market conditions. Using’ Ben Sherman
illustrate how this works. (3.3)
Guidelines
answer:
Pricing strategies, psychological costs and discriminatory and
ethical issues

Promotional activity is essential to achieve an organisation’s
marketing objectives. Using Ben Sherman, show how
promotional activity is integrated into marketing objectives.
(3.4)
Guidelines
You are required to include some of the following in
formulating your answer: Effective integrated communication
process (SOSTT +4Ms.), promotional mix elements; push and
pull strategies; advertising above and below the line including
packaging, public relations and sponsorship, sales promotion,
direct marketing, personal selling; branding, internet and online
marketing.
The marketing mix is an important concept. Analyse the
additional elements of the extended marketing mix? (3.5)
Guidelines
answer:
Concept of the extended marketing mix, significance of the soft
elements of marketing (people, physical evidence and process
management).
To achieve M2: You need to discuss how you would select and
apply appropriate methods within Ben Sherman in order to
sustain a competitive advantage. Use a range of sources such as
textbooks, academic articles, case studies and reliable internet
sources, apply Harvard Referencing throughout.
To achieve M3: You will need todemonstrate how Ben Sherman

uses prices to reflect its organisational objectives. Present
these finding in a structured and professional report.
To achieve D2: You work as a marketing director for Ben
Sherman and have been asked to investigate how you can best
organise the promotional activities of :
1. Your own stores
2. Independent fashions stores
3. Department stores
To achieve D3: You will need to demonstrate creative thinking
by illustrating how promotional activity is aligned to achieve
marketing objectives. Please support your answer with
examples and /or an organisation of your choice.
Task 4 (This tasks offers you an opportunity to achieveL.O.4:
4.1, 4.2, 4.3 and M3, D3) Be able to use marketing mix in
different contexts.
Propose two separate marketing mixes for two different
segments in consumer markets, using products/services from
Ben Sherman. (4.1)
Guidelines
Marketing mix (product, place, price and promotion).
Marketing tactics used on a consumer is different to the
marking tactics used for a business. Using Ben Sherman,
illustrate the differences in marketing products and services to
businesses rather than consumers. (4.2)
Guidelines
You are required to consider the following in formulating your

answer:
Differences of organisational and consumer markets for the Ben
Sherman company.
Marketing a product/service domestically would employ slightly
different methods than those used for international marketing.
Explain this using Ben Sherman as an example. (4.3)
Guidelines
You are required to include some of the following in
formulating your answer:
Globalisation, culturally differences, standardisation versus
adaptation, regional integration (EU, NAFTA), benefits and
risk; markets attractiveness and international marketing mix
strategies.
Completion date: 4th July 2014
To achieve M3: Use an appropriate and structured method to
communicate how the marketing of Ben Sherman products have
to be marketed differently in an international market compared
to the domestic market. Your audience for this communication
is Managing Directors.
To achieve D3: You work as a newly appointed Marketing
Manager for an organisation of your choice. You have been
asked to convince the board on the benefits of global
investments.
Present your response using 10-15 slides (excluding references
and appendices). You are expected to address the following
issues:
· The importance of global expansion
· What factors you need to take into consideration when

marketing globally
· The marketing tactics and mix that may be appropriate for
your chosen product/service.
Answer Sheet
Task 1(L.O.1: L.O.1: 1.1, 1.2 and M1, M2 & D1)
Task 2 (L.O.2: 2.1, 2.2, 2.3, 2.4, 2.5 and M1 & D1)
Task 3 (L.O.3: 3.1, 3.2, 3.3, 3.4, 3.5 and M2, M3, D2 & D3)
Task 4 (L.O.4: 4.1, 4.2, 4.3 and M3 & D3)
IMPORTANT
CHECK THAT YOUR ANSWERS MEET THE CRITERIA
COMPLETE THE ASSIGNMENT CRITERIA AS YOU GO
ALONG
DO noT LEAVE THINGS TO THE LAST MINUTE

�
Source: http://www.vespamx.com/2012/02/ben-sherman-en-
mexico.html
BTEC Level 5 HND in Business Unit 04: Marketing Principles
May 2014
16

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