A-level BUSINESS Paper 2 Business 2 JUNE 2022

AQA A-level BUSINESS Paper 2 Business 2 Time allowed: 2 hours Materials For this paper you must have: • a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. • If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). • Do all rough work in this answer book. Cross through any work you do not want to be marked. Information • The marks for questions are shown in brackets. • The maximum mark for this paper is 100. Answer all questions in the spaces provided. box 0 1 Read the information below and then answer the questions that follow. The UK tea market Tea drinking in the UK is declining as younger customers choose alternatives such as coffee. Extrapolation of the annual sales suggests that coffee will outsell tea in the UK by 2025. Within the overall tea market traditional black tea still dominates sales. However, a ‘health tea’ niche made up of fruit, herbal and green teas is growing. This niche has benefitted from its association with wellbeing. Appendix A Annual sales volume of black tea and coffee (million kg), UK (actual sales 2012–2020; estimated sales 2021–2025) Appendix B UK tea brands 2019 Rank Brand Annual Sales (£m) % change Type of tea in range 1 Twinings 108 +3.8 Black and health tea 2 PG Tips 99 −7.2 Mainly black, with small new health tea range 3 Taylors (including Yorkshire Tea) 98 +5.0 Black and health tea 4 Tetley 90 +0.4 Mainly black but some health tea 5 Pukka 23 +15.4 Organic and ethical black and health teas Other tea brands 144 Appendix C Price elasticity of demand data Type of tea Price elasticity of demand Black tea −1.2 Health teas −0.5 Turn over for Appendix D box Turn over ► Appendix D Selected data from recent market research survey box How often do you drink black tea? (% of respondents) Overall Age 18–24 Age over 65 Several times a day 42 25 56 Once a day 15 16 16 2–3 times per week 10 14 5 Occasionally 12 17 7 Never 21 28 16 Do you drink health tea? (% of respondents) Yes Female 32 Male 19 How important is it that the tea you buy is ethically sourced, eg fair trade? (% of respondents) Important 62 Not very important 26 Not at all important 12 . What is meant by the term extrapolation? [2 marks] . Using Appendix B, calculate the combined market share of the top four tea brands in 2019. box [3 marks] . Using the data in Appendix D, explain one benefit of the use of market segmentation to a business selling tea. [4 marks] Turn over for the next question Turn over ► . A business sells two types of tea: black tea and health tea. Analyse how the data in Appendix C will affect how this business might change the price it charges for each type of tea to increase its sales revenue. box [9 marks] . To what extent does the information provided suggest that now is a good time to launch a new brand of tea? box [16 marks] *07* Turn over ► Extra space