P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
88
KA P LA N P UBL I SH IN G
13
GRR makes
soft toy animals for children, which are sold through a number of toy stores.
GRR has made losses for the last two years and feels it may be due to problems with its
basic marketing mix.
(a)
Below are some key ideas which GRR’s managers have identified
as part of a basic
marketing mix analysis:
A
Discounts offered to customers who buy three or more toys at the same time
B
New, brighter packaging
on all toys
C
Toys to be made 25% larger than currently
D
Sale of toys directly to customers through GRR’s
website
E
Improved after-sale care to customers, following
complaints by customers
F
Provision of a 2-year warranty on all toys sold
G
Reduction in price of all products by 15%
H
New advertisements for key products
in national newspapers
Required:
Write down which four of the above issues would be most likely to be classified as
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