Nyah Johnson conducted research on JMJ Car Rental Ltd. to investigate whether its marketing strategies contributed to profitability. JMJ Car Rental uses social media marketing on Facebook and prices vehicles based on competitors. While gross profit was high, net profit was low, indicating marketing revenue did not fully cover costs. The student recommends JMJ Car Rental expand advertising methods and reduce expenses to improve profitability.

1. Caribbean Secondary Education Certificate
Principles of Accounts
School-Based Assessment
Candidate Name: Nyah Johnson
Candidate Registration Number:
Centre: Immaculate Conception High School
Centre Number: 100051
Territory: Jamaica
Teachers Name: Ms. S. Sinclair & Ms. L. Aitcheson
Date Submitted: March 29, 2019
Year: 2019

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Table of Contents
Topic…………………………………………….………………………………….2
Objectives……………………………………………...…...………………………2
Background…………………………………………………………………………2
Methodology………………………………………………………………………..3
Presentation and Analysis of Data….……………………………………………4-5
Findings…………………………………………………………………….………6
Conclusion………………………………………………………………………….7
Recommendation…………………………………………………………………...8
Bibliography………………………………………………………………………..9
Appendix………………………………………………………………………10-13

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Topic: An investigation of whether the marketing strategies used has contributed to the
profitability of JMJ Car Rental Ltd.
Objectives:
1. Explain the type of advertising used by JMJ Car Rental Ltd.
2. Evaluate the pricing strategy used by JMJ Car Rental Ltd.
3. Assess the extent to which the marketing strategies have contributed to profit.
Background
JMJ Car Rental Ltd, the company of focus for this School-Based Assessment, has been in
operation only for two years. This small business began in 2017 with only the managing
director’s car. As the company profitably progressed, the owner has now acquired more vehicles
through investors and their profit; with now 10 and counting vehicles on the roads of Jamaica.
Even with high competition, profit has been steadily increasing. For businesses, marketing is
essential for sales and profitability.
This study seeks to investigate whether the marketing strategies used by JMJ Car Rental Ltd has
contributed to profitability. This research is significant as I aspire to be a future entrepreneur, and
wish to be knowledgeable on how my marketing strategies may assist my businesses profitability
significantly. This study may also be beneficial to new firms as it may help in marketing their
future goods and services in the most profitable way possible.

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Methodology
To collect the appropriate data, the student researcher designed and carried out a survey-styled
questionnaire (primary data). The questionnaire contained eleven (11) questions and gather
insights about the company’s marketing strategies as well as their financial position at the end of
the fiscal year (qualitative information).
The questionnaire was distributed face-to-face to the managing director of JMJ Car Rental Ltd, a
34-year-old male. The respondent returned the questionnaire to the researcher. The student
researcher also collected the businesses financial statement (secondary data) which was used to
measure profitability (quantitative information).
A questionnaire and financial statement were utilised for this school-based assessment as it gives
accurate and direct information needed for a thorough investigation of the topic. One limitation
of this process is that there was limited time to collect data.

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Presentation and Analysis of Data
Table 1: Questionnaire Responses from JMJ Car Rental Ltd.
Question Responses
Marketing Strategy used Social media marketing (Facebook)
How has the marketing strategy contributed to profit Sales has increased
What type of information is advertised Factual information about the company
Pricing strategy Market-Based Pricing
Analysis: The table above was made based on the questionnaire responses. JMJ Car Rental Ltd
only markets factual information on social media, which had increased sales and the pricing
strategy used is market based.
Table 2: Financial Figures for JMJ Car Rental Ltd. for the year ended 31 December 2018
Cost of advertising $15,962.00 JMD
Sales Figure $3,091,289.00 JMD
Net Profit Figure $99,714.00 JMD
Gross Profit Figure $2,641,894.00 JMD
Analysis: The table above shows the following figures; sales, net profit, gross profit and cost of
advertising
.
0
500000
1000000
1500000
2000000
2500000
3000000
Gross Profit Net Profit
$(JMD)
Bar Graph Comparing The Net Profitand Gross
ProfitFigures for the Year Ended 31 December
2018
Figures

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Analysis: The bar graph above compares the gross profit and net profit figures. These figures
have a difference of $2,542,180.00.
Accounting Ratios:
Net Profit Margin =
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
× 100
=
99,714.00
3,091,289.00
× 100
= 3.23%
Analysis: The net profit ratio of 3.23% can be interpreted as a substandard net profit margin.
Hence the business did not earn a large sum of net profit in their fiscal year.
Gross Profit Margin =
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
× 100
=
2,641,894.00
3,091,289.00
× 100
= 85.46%
Analysis: The gross profit ratio of 85.46% can be interpreted as a good gross profit margin.
Hence the business made a large sum of gross profit in their fiscal year.

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Discussion
From the information gathered, JMJ Car Rental Ltd. engages in social media marketing on
Facebook which costs the business $15,962.00 yearly. The business advertises factual
information about the company, such as contact information, the brand of car available for rent,
where to locate the business and services offered other than car rental (airport pickups and
chartered taxis). Hence the type of advertising used is informative advertising. Informative
advertising gives factual information about a product and where the product can be found.
The pricing strategy used by JMJ Car Rental Ltd. is market-based. With this pricing strategy, the
business will evaluate the prices of similar products that are on the market. Depending on if the
product has more or fewer features than the competition, the company sets the price higher or
lower than the competitors pricing.
Based on the accounting ratios, the gross profit margin of 85.46% the business is successfully
increasing in value over the year by efficiently providing the car rental service as well as making
a reasonable profit on sales after deducting the cost of goods sold and operating expenses.
However, the net profit margin of 3.23% means that the businesses gross profit is going towards
expenses and not the company itself. Therefore, the business is not exceptionally profitable.

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Conclusion
The objective of this school-based assessment was to investigate whether the marketing
strategies used by JMJ Car Rental Ltd. has contributed to profitability. The business advertises
via social media, specifically Facebook and prices services based on the market. Based on the
accounting ratios calculated, the student researcher may infer that the marketing strategies used
by JMJ Car Rental Ltd. have not exceptionally contributed to profitability because the revenue
earned cannot cover both costs of goods sold, operating expenses and expenditure (total
expenses) for their fiscal year.

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Recommendation
JMJ Car Rental Ltd. may be more profitable by reducing unnecessary expenditure or by
increasing productivity- having more rental vehicles in the market performing at once. The
business may use a wider variety of advertising such as persuasive as well as informative to
attract more customers. Therefore, the advertisement that the company makes can appeal to the
emotions of the consumer (show how well the cars offered for rent perform) as well as being
humorous.

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Bibliography
Nelson Thornes, Principles of Business for CSEC (Oxford University Press, 2014)
Leigh Anthony, What Is a Market-based Pricing Strategy? (Hearst Newspaper LLC, 2019)
https://smallbusiness.chron.com/market-based-pricing-strategy-5121.html

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Appendix
QUESTIONNAIRE
Dear Respondent,
Good day. I am a student of Immaculate Conception High School, investigating whether the
marketing strategy used by JMJ Car Rental Ltd. has contributed to the profitability of the
business. This survey-styled questionnaire is being conducted for my Principles of Business and
Principles of Accounts School-Based Assessment. Please keep your answers honest and truthful.
Additionally, please select one (1) answer for each question. All responses are confidential.
N. Johnson
1. Gender?
□ Male
□ Female
2. Age? _______
3. Position in the company? ____________________
4. What marketing strategy does JMJ Car Rental Ltd. use?
□ Social media (such as Instagram or Facebook) marketing
□ Integrated marketing
□ Paid advertising
□ Other, specify ______________________________________________________
5. What is the cost of marketing for JMJ Car Rental Ltd. (per month)?
□ Free
□ Please specify______________________________________________________
6. Has the marketing strategy used contributed to net profit over the last year?
□ Yes
□ No
7. How has the marketing strategy used contributed to profit?
□ Sales has increased
□ Sales has decreased
□ Sales has been steady
8. Over the last year, what is the sales figure?
□ _____________________________________
9. Over the last year, what is the net profit figure?
□ ______________________________________

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10. What type of information is advertised by JMJ Car Rental Ltd.?
□ Factual information
□ Information that entices the consumer to purchase the product by using emotional
and/or psychological appeals.
□ Information that compares the product of JMJ Car Rental Ltd. to another similar
business.
□ Information that reminds customers and potential customers of JMJ Car rental
that products are still available.
11. What pricing strategy does JMJ Car Rental Ltd use?
□ Cost-based pricing
□ Penetration pricing
□ Predatory pricing
□ Other, specify ______________________________________________________
THANK YOU

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