Adding value — 6-mark explain

Maya runs "PawBox", a monthly subscription box for dog owners containing curated treats, toys and accessories. A standard supermarket dog treat costs £1.50; PawBox charges £28 per month for 6–8 items with a combined retail value of around £22.

Explain how PawBox adds value, and analyse whether the methods of adding value are likely to be sustainable in the long run.

[6 marks]

Mark scheme (AO1 + AO2 + AO3):

AO1 — Knowledge (up to 2 marks):

• Adding value = price charged exceeds cost of inputs (B1).
• Methods: branding, convenience, quality, USP, design (B1 per valid method, max 2).

AO2 — Application (up to 2 marks):

• PawBox charges £28 for goods worth £22 — the £6 premium is added value (B1).
• Convenience of curation removes effort for busy dog owners (B1); branding/packaging creates a "gift experience" that customers pay extra for (B1). Max 2.

AO3 — Analysis/evaluation (up to 2 marks):

• The model is sustainable if PawBox maintains a strong brand and keeps curation quality high (B1).
• However, if competitors copy the model (low barriers to entry in subscription boxes), the premium could erode (B1).
• Conclusion: sustainability depends on continuous differentiation — a one-sided judgement with justification scores full AO3 (B2).

Total: 6 marks.