IGCSE, A Level Business Student Forum

Ella has just left college and wants to start up her own business. She has designed a new bicycle light with a safety feature not found in any rival products. Ella knows obtaining finance will be difficult. She plans to have the lights produced in another country. Each light will cost $8 to produce. Ella cannot decide whether to use price skimming. She said: ‘I have received orders for 300 lights and I have not even started promoting them’. Ella wants to be a successful entrepreneur. 07 Recommend which promotion option Ella should choose. Justify your answer using the information in the
table above. [6]

Possible KN Points:
• Option 2 is cheaper
• Ella can’t afford much advertising
• Specialist magazine reaches the target market
• Website may not be required