Marketing is usually the first big topic in A-Level Business. It sounds easy, because we all see adverts every day. But in the exam, marketing means something precise: the decisions a business makes to find customers, meet their needs and make a profit. Three UK cases show how these decisions work, and what happens when they go wrong.
Two tools you need first
The marketing mix (the 4Ps)
The marketing mix is the set of four decisions a firm controls: product (what it sells), price (what it charges), place (where and how customers buy it) and promotion (how it tells customers about it). The key idea is that the four must fit together and fit the target customer. A low-price product with very expensive promotion, for example, may not make a profit.
Market research
Market research is how a firm collects information to make these decisions. Primary research is new information the firm collects itself, such as a trial or a survey. Secondary research uses information that already exists, such as sales figures, published accounts or price comparisons. Good research reduces risk. It does not remove it.
Lesson 1 – Prime: promotion can create demand, but cannot keep it
Prime Hydration is a sports drink launched by the YouTubers Logan Paul and KSI. It arrived in the UK in June 2022 with a huge amount of attention, driven by the two founders' online fame [1]. This is promotion through influencers: the founders' audiences were the advertising.
At first it worked. UK sales grew strongly until 2023. Then, in 2024, the UK business's revenue fell from £112.2 million to £32.8 million, a fall of more than 70%. Its net profit fell by 91.6% [1]. The company said that "consumer interest has moderated" [1].
What is the lesson? Hype is a form of promotion that creates fast, short-term demand. But demand built on excitement can disappear once the excitement fades. A long-term brand needs the other Ps too: a product people keep buying because they like it, at a price that feels fair. The falling sales figures are also an example of secondary research. They tell managers clearly that the original strategy has stopped working. Prime's UK business then started a strategic review [1].
Lesson 2 – Primark: place is a strategic choice
Primark, the low-price clothing retailer, is a strong example of place. For many years it sold only in its shops. It had long argued that delivering very cheap clothes to people's homes did not make financial sense, because the cost of delivery is high compared with the price of a T-shirt [4].
Primark changed this in stages:
| When | What changed |
|---|---|
| Trial (from 2022) | Click & Collect (order online, collect in a shop) tested in 25 stores in the North West of England, Yorkshire and North Wales [2][4]. |
| May 2025 | Click & Collect available in all 187 Primark stores in Great Britain, with over 5,000 products [2]. |
| September 2026 | Home delivery announced for Great Britain, supported by an automated warehouse in Sheffield. No start date given [3][4]. |
Notice the role of research. The trial in 25 stores was primary research: Primark tested the idea with real customers before spending money across the country. Click & Collect also kept customers coming into shops, where they might buy more.
The timing matters too. In the same September 2026 update, Primark's owner, Associated British Foods (ABF), expected Primark's like-for-like sales (sales in shops open for at least a year) to fall about 3% in the final quarter. It said home delivery offered "incremental and profitable growth" [3][4]. So a change in place was partly a response to weak sales.
Lesson 3 – Aldi and Tesco: price as positioning
Positioning is how customers see a brand compared with its competitors. Aldi positions itself on price: its message is that customers "will always pay the lowest prices on every product we sell" [6]. Which?, the UK consumer organisation, regularly compares the cost of the same basket of groceries in each supermarket. For example, in September 2024 Aldi was the cheapest, at £102.68 for 59 items, against £130.37 at Waitrose [8].
Price positioning puts pressure on rivals. In March 2020, Tesco, the UK's largest supermarket, launched Aldi Price Match. It matched Aldi's prices on hundreds of products and marked them with a red label on the shelf [5][6]. At the time Tesco had a market share of 27.2% and Aldi 7.9% [6]. Tesco checked Aldi's prices twice a week [6], which is a simple form of competitor research. In April 2026 Tesco extended the scheme to more than 2,000 of its small Express shops, with around 200 products [7].
The lesson is that price is not only a number. It is a message about what the brand stands for. Tesco did not try to become Aldi. It matched prices on a limited set of everyday items, so that shoppers would not need to leave Tesco to save money, while keeping its wider range, its Clubcard and its premium products.
Using a case in an exam answer
Exam questions give you a new business, but the thinking is the same. Imagine a question asks you to assess whether a low-price clothing retailer should start home delivery. Here is how you could use Primark.
Home delivery would let the retailer reach customers who live far from its shops → this increases the number of potential buyers → sales revenue could rise without the high cost of opening new stores. However, each order carries packing and delivery costs → on low-price items these costs are a large share of the selling price → the profit on each online order may be very small, or negative.
On balance, home delivery is likely to be worthwhile only if the firm can keep delivery costs low. Primark reduced this risk by testing Click & Collect first and by running its own automated warehouse [2][4]. The most important factor is the average order value: if customers buy several items per order, delivery becomes profitable; if they buy one cheap item, it does not.
Look at the structure. Each arrow is one step of logic. The judgement gives a clear answer, explains why, and says what it depends on. That final "depends on" is what turns a good answer into an excellent one.
Three things to remember
- The 4Ps must work together and fit the target customer.
- Research reduces risk, but managers still have to make a judgement.
- In exams, always link the theory to the facts of the case in front of you.
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Sources
- City AM (2025). Prime: Logan Paul and KSI's energy drink runs out of juice.
- Retail Gazette (2025). Primark completes nationwide click and collect roll out.
- Retail Gazette (2026). Primark makes major ecommerce U-turn as it confirms home delivery plans.
- The Irish Times (2026). Online holdout Primark starting delivery service in UK to arrest sales slump.
- Retail Gazette (2020). Tesco launches products at Aldi prices to win back customers.
- Marketing Week (2020). Tesco becomes first supermarket to directly price match with Aldi.
- The Retail Bulletin (2026). Tesco extends Aldi Price Match to 2,000 convenience stores.
- Which? (2024). Aldi was the cheapest supermarket in September, Which? reveals.