Edexcel GCSE (9-1) Business Homework and Assessment Worksheet

Name: _______________________________________

25. Product

Answer ALL questions.

Write your answers in the spaces provided.

The quality of the product is essential to the success of Estee Lauder. It makes products in
skincare, makeup, fragrance and haircare.

Health and beauty brands have been around a long time. The iconic Chanel No.5 dates from
1921. However, people constantly want to try new and updated products. Shortening
product life cycles in health and beauty mean that businesses are under pressure to
innovate.

The company puts significant investment into new product development. In 2017 Estee
Lauder launched a second range of Victoria Beckham products such as lipstick, Nude Spice.
High profile celebrities such as Beckham help the business create an exclusive image. Estee
Lauder’s design team worked alongside Beckham to develop both the first range and the
new designs.

As a premium product, the variable costs in terms of ingredients are high. If the product
itself is poor then Estee Lauder is likely to get a bad reputation. Therefore, it is very aware
that image alone will not sell. It is constantly looking to improve product quality, particularly
in the competitive health and beauty industry.

1. Define the term “product”. (1)

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2. Define the term “product life cycle”. (1)

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Edexcel GCSE (9-1) Business Homework and Assessment Worksheet

3. Outline one aspect of the design mix at Estee Lauder. (2)

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4. Outline one impact of having a premium product at Estee Lauder. (2)

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5. Analyse the importance to Estee Lauder of having differentiated products. (6)

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Total: /12 marks

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