4.5 The seven Ps of the marketing mix questions for IB Business Management

Kalinda Surf Wax

[1] Kalinda Surf Wax (KSW) is a partnership based in Byron Bay, Australia, owned by Jarrah Collins and Linh Dao. Since 2012 KSW has made surfboard wax from beeswax and coconut oil, sold in recyclable cardboard tins through 60 independent surf shops along the east coast of Australia. KSW’s brand is well known among local surfers, and its wax has won two industry awards for grip in warm water.

[2] For the past three years KSW’s sales volume has hardly changed, at about 180 000 tins a year. Two larger competitors have launched cheaper waxes, and surf-shop owners report that most surfers in the region already buy KSW or a rival brand. Profit is still healthy, but Jarrah worries that the product is close to the end of its maturity stage.

[3] Jarrah wants to extend the product life cycle by selling KSW wax in Indonesia and Portugal, two growing surf markets. This would mean finding distributors abroad, translating the packaging and paying for export shipping. Linh prefers to modify the product: she has developed a “cold-water” formula and a wax for stand-up paddle boards, which could be sold through the existing surf shops. Her version would need AUD 45 000 of new equipment and some retraining of KSW’s six production workers.

[4] The partners have AUD 70 000 of retained profit available and do not want to borrow. Both agree that KSW must not lose its reputation for high quality and natural ingredients.

Saigon Optics is a Vietnamese electronics company. In 2020 it began developing the TrekCam, a waterproof action camera, which it launched in 2021. Table 1 shows data for the TrekCam since development began.

Table 1: Sales, profit and net cash flow of the TrekCam, 2020–2025

$ = US dollars

Read the resources and answer the questions that follow.

Awana Warmi (AW)

AW is a co-operative of 120 Quechua women weavers in Chinchero, near Cusco, Peru. Members spin alpaca wool by hand, dye it with plants and weave scarves, shawls and blankets using traditional patterns. AW was set up in 2012 so that women in the village could earn an income without leaving their families and land, and so that traditional weaving would survive. Most sales are made to tourists who visit AW’s workshop.

Resource 1: Email from Marisol Choque, AW’s coordinator, to the members’ committee

Tourist numbers in Chinchero rise and fall every year. Last year road blockades during protests kept visitors away for two months and our sales collapsed. Many members had no income at all. We need customers who do not have to come here. My nephew can build us an online shop, and we have also been contacted by an importer in the United States.

Resource 2: AW’s sales (PEN, Peruvian soles)

Resource 3: Email from Threadline Trading, a fair-trade importer in Portland, USA

Our 300 retail customers love authentic handmade textiles. We would like to order 4 000 scarves a year at PEN 95 each. To sell through our stores, scarves must come in three standard sizes and six colours that we choose each season, and must carry fair-trade certification. We pay 90 days after delivery.

Resource 4: Reviews on a travel website

“The most beautiful shawl I own, and I met the woman who made it. Worth every sol.” (visitor from Germany)

“Tried to order a blanket online after my trip. No reply for two weeks and shipping to Canada cost more than the blanket!” (visitor from Canada)

Resource 5: Extract from an article on Peruvian textiles

Shops in Lima and abroad sell machine-made scarves labelled “alpaca” for a fraction of the price of handwoven pieces. Many contain little or no alpaca. Buyers abroad often cannot tell the difference online, where storytelling and certification are what persuade them to pay a higher price.

Mirella Sauces, a family business in Bologna, Italy, has sold the same tomato-and-basil pasta sauce since 1998. Sales have been falling for two years, so the owners plan to launch a reduced-salt version in smaller glass jars as an extension strategy.

Define the term extension strategy.

Mjelde Skincare is a Norwegian company that sells four products made from Arctic plant extracts. Table 1 shows data for each product.

Table 1: Mjelde Skincare product portfolio, 2025

Relative market share = Mjelde’s share ÷ the share of the largest competitor. A value above 1.0 is treated as high; market growth above 10 % is treated as high.

Sunaai Hearing Private Limited (SH)

Dr Ritu Awasthi, an audiologist, founded Sunaai Hearing (SH) in Lucknow, India, in 2020. SH is a private sector social enterprise. It designs low-cost rechargeable hearing aids, which are assembled in its own workshop and sold for ₹6 000, compared with ₹40 000 or more for imported models. Its vans visit villages to test people’s hearing free of charge. Ritu owns 55 % of the shares, and an impact investor, Navya Impact Fund, owns 45 %. SH reinvests its profits.

Read the resources and answer the questions that follow.

Resource 1: Extract from a newspaper article

A national health survey estimates that about one in four people over 60 has hearing loss that affects daily life, yet fewer than one in ten of those who need a hearing aid has one. Cost is the main barrier, but stigma matters too: many older people see hearing aids as a sign of weakness. Children with untreated hearing loss often fall behind at school. Most rural districts have no audiologist at all.

Resource 2: SH’s results, 2022–2025

Resource 3: Email from Karan Mehta, SH’s finance manager, to Ritu Awasthi

Each hearing aid costs us about ₹3 900 to make, so we earn ₹2 100 per unit at our normal price. Profit fell in 2025 because we added two new vans and the price of batteries rose. Navya Impact Fund has asked when we will make a profit of at least 10 % of revenue. They suggested we launch a premium model for private clinics in cities at about ₹15 000 to subsidize the village programme.

Resource 4: Social media posts about SH

“My father can hear his grandchildren again. Best ₹6 000 we ever spent.” (Sunil, Sitapur)

“Our hearing aid stopped charging. The nearest SH service point is in Lucknow, 140 km away. We have waited six weeks for a repair.” (Meena, Bahraich)

“Cheap imported hearing aids are sold online for ₹2 500. Why pay more?” (comment under an SH advertisement)

Resource 5: Letter from the state government’s health department

The department invites SH to supply 50 000 hearing aids to public hospitals over three years at ₹4 500 per unit, with payment 120 days after delivery. Suppliers must hold a recognized quality certificate and provide a repair service in every district of the state.