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These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

01 Hours 30 Minutes

100 Marks

Calculator NOT allowed

IB BUSINESS MANAGEMENT SL, Paper 2, May, 2003, TZ0, Solved Past Paper

Master the 2003 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

The company TCP, known for manufacturing mechanical diggers and construction equipment, is expanding its brand into the clothing industry. They have introduced a clothing line under the "Digger" label, which includes rugged fleeces, trousers, and padded jackets. These items are inspired by the durable workwear used on construction sites, making them ideal for casual wear. TCP aims to leverage its established brand reputation to appeal to a new market segment, specifically targeting professional men and women aged 22-35. The company hopes that this venture will enhance their professional image among home improvement enthusiasts.

Question 1 [a] [Explanation]

TCP is focusing on a specific demographic for their "Digger" brand, targeting professional males and females aged 22-35. This involves understanding the concept of market segmentation, which is crucial for tailoring marketing strategies to meet the specific needs and preferences of this group.

Question 1 [a] [i] [Explanation]

This question asks you to describe the concept of segmentation, which involves dividing a broad market into smaller, more defined categories of consumers who have similar needs and preferences. This allows companies to tailor their marketing efforts to specific segments, ensuring that they meet the unique demands of each group.

Question 1 [a] [ii] [Explanation]

This question requires an evaluation of the various segmentation factors that TCP must consider to ensure the success of their "Digger" brand in the market. These factors include age, gender, socio-economic groups, location, lifestyle, benefits, and motives for buying. Understanding these elements will help TCP tailor their products and marketing strategies to effectively reach their target audience.

Question 1 [b] [Explanation]

This question asks you to explain the purpose of branding and assess the potential success of the "Digger" brand for TCP. Branding is a critical component of marketing strategy, as it helps differentiate a company's products from competitors and builds customer recognition and loyalty. Understanding the role of branding will provide insights into how TCP can leverage its existing brand reputation to succeed in the clothing market.

Question 1 [c] [Explanation]

TCP needs to conduct market research to identify their target audience for the DIY clothing and powerful tools. This question asks you to explain three techniques that TCP could use to effectively research the market. Understanding these techniques will help TCP gather valuable insights into consumer preferences and behaviors, enabling them to tailor their products and marketing strategies accordingly.

Question 2 [Explained]

The Star Alliance, established in 1997, is a collaboration of independent airlines, each maintaining its unique identity while benefiting from a collective partnership. This alliance allows customers to earn loyalty points across any member airline, which can be redeemed for flights, holidays, and other rewards. The table provided gives insights into the price, quality of service, and efficiency record of each airline within the alliance. Recently, the airline industry has faced challenges such as decreased demand and overcapacity, leading to significant job losses, exemplified by Ansett Australian ceasing operations.

Question 2 [a] [Explanation]

This question asks you to explain the concept of a strategic alliance. A strategic alliance involves two or more companies working together on specific projects while maintaining their independence. They share resources, costs, and profits, benefiting from economies of scale, enhanced marketing, and increased purchasing power without forming a new legal entity.