Business Studies · May / June 2016 · Paper 12 · Question 2

F&G is a leading fashion retailer. It has 20 shops in country C. The business uses market segmentation. Its target market is men aged between 25 and 40 years old. The Marketing Director has been looking at the marketing data shown in Table 1. She is worried that the amount the business spends on marketing is not cost effective. She would like to close down all F&G shops and just use e-commerce. Table 1 Year Total value of the men’s F&G’s market share F&G’s marketing budget clothing market 2015 $500m 15% $25m 2016 $700m 12% $40m

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