This is the exam question from the 2009 Higher Level Paper.
3.Answer all parts of this question:
Due to the proposed introduction of a tax on parking spaces in the workplace ONYOURBIKE Ltd,
a bicycle manufacturer, decided to carry out market research to see if there was an opening for
a new type of bicycle.
The market research findings were as follows:
• the bicycle should be capable of being folded up and stored easily when not in use;
• the bicycle should come in five different colours and in three different sizes.
ONYOURBIKE Ltd decided to launch a new fold-up bicycle called the FUB4U on
1 July 2009.
It will come in five colours and in three sizes. It will also have a bag in which the
bicycle can be stored. The bicycle can be assembled in twenty seconds and will weigh 8 kilos.
The FUB4U will cost €390 to manufacture. The selling price will be cost plus 30%.
It can be purchased at all good bicycle shops from 2 July 2009.
Note: A competitor BREAKDOWNBIKES Ltd has a fold-up bicycle selling at €600 and is
available in only one size and colour.
(A) Calculate the selling price of the FUB4U. (4)
(B) Explain, with examples, two methods of carrying out market research. (8)
(C) Draft a suitable and attractive newspaper advertisement that could be used
to launch the new fold up bicycle. (16)
(D) Other than advertisements, explain three methods that ONYOURBIKE Ltd
could use to promote the new FUB4U. (12)
(40 marks)
