Question 1

Brickheads Ltd. ,located in Newmarket,Ontario,is the leading building materials manufacturer specializing in the manufacture of bricks for housing in the greater Toronto market.Tracey Dyer,Brickheads' Vice President Marketing,remarked to a board meeting that "Brickheads wished that it had an operation in lower mainland BC to capitalize on the housing boom currently being experienced there.But the overall profit picture here for us is excellent despite a slow and steady market." Brickheads would be classified by the BCG model as which of the following?

Accepted Answer

According to the BCG model, a cash cow is a business unit with a high market share in a low-growth market. Brickheads is leading in its market but is experiencing a slow and steady market. Therefore, it would be classified as a cash cow. The other options do not fit Brickheads' current situation.

Question 2

In 1969,Alberto-Culver in Canada,a hair care products company,entered the food product industry and introduced Sugar Twin,currently the best-selling sugar substitute in the Canadian marketplace.This product introduction was an example of which type of growth strategy?

Accepted Answer

Diversification involves the expansion of a company into a new product or market that is distinct from its current offerings. In this case, Alberto-Culver expanded from the hair care products industry into the food product industry with the introduction of Sugar Twin, a sugar substitute. Therefore, option A) is the best choice. Options B) and C) do not fit the scenario as integrative growth involves merging of companies and market penetration involves increasing market share in the company's current market. Option D) is not the best choice as market development involves expanding the company's current products into new markets, rather than adding a new product line.

Question 3

What describes and estimates the size and sales potential of market segments of interest to the firm,and assesses key competitors in these market segments?

Accepted Answer

Market opportunity analysis involves identifying and assessing market segments of interest to the firm and estimating their size and sales potential. This analysis also involves evaluating key competitors in these market segments. Environmental scan refers to the study of external factors that could impact a business or industry. Marketing mix audit assesses a company's marketing strategies and tactics, and target market strategy involves selecting and focusing on specific market segments.

Question 4

CentralPulse is Europe's largest manufacturer of hip and knee replacement joints.Which of the company's strategies would identify the surgeons and hospitals as two market segments on which CentralPulse will focus its marketing efforts?

Accepted Answer

Target market refers to a specific group of customers that a company aims to serve with its products or services. In this scenario, CentralPulse is identifying the market segments of surgeons and hospitals, indicating that these are its target markets for its hip and knee replacement joints.

Question 5

Hallmark was inspired by the popularity of Jan Karon's best-selling novels about Mitford,a fictional town in the mountains of North Carolina,to develop a new line of products for Hallmark Gold Crown Stores.Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality.The products include greeting cards,partyware and gift wrap,mugs,and puzzles for Hallmark's existing customers.What type of strategy did Hallmark use?

Accepted Answer

Hallmark created a new line of products based on the popularity of Jan Karon's novels, which is an example of product development.

Question 6

Which strategy increases sales by introducing new products into new markets?

Accepted Answer

Diversification is the strategy that involves increasing sales by introducing new products into new markets. This approach not only expands the product line but also explores new demographic or geographic markets, thereby spreading risk and opportunities across different areas.

Question 7

Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and Mexico.It has since added Turkish rugs and fabrics,leather-trimmed purses,and a line of women's clothes for its customers.This activity is indicative of which type of strategy?

Accepted Answer

Product development, which involves introducing new products to an existing market, is the most appropriate strategy for Clay Market as it has added new product lines (Turkish rugs and fabrics, leather-trimmed purses, women's clothes) to its existing retail business of selling terra cotta pots and garden figures imported from Turkey and Mexico.

Question 8

Bee-Clean Industries is a start-up company specializing in office building janitorial services in Victoria.Bee-Clean has experienced rapid growth of clients and has been rapidly hiring new employees to service this new business.As most employees are new to their tasks,their productivity has been below industry standard.As a result,the company's profit picture has not been pretty.According to the BCG,what would Bee-Clean be classified as?

Accepted Answer

Bee-Clean Industries can be classified as a question mark because it is a start-up company that is experiencing rapid growth but has low productivity and profits. It has the potential to become a star in the future if it can address its productivity issues and continue to grow, but it is currently uncertain how successful it will be.

Question 9

Juniper Group,which operates film distribution,health care,and Internet businesses,purchased shoemaker Tags Golf (Tags makes Bobby Jones-brand golf shoes)to create its sports division.What type of strategy did Juniper Group use?

Accepted Answer

Juniper Group used a diversification strategy by purchasing a shoemaker to create its sports division, which is a new market for the company.

Question 10

Vendarama,a specialty manufacturer of DVD and CD vending machines located in Hamilton,Ontario,has experienced meteoric growth over the past couple of years.Demand for its innovative and unique vending machines has been strong in major urban areas of the country and internationally.Vendarama has approached TJ Associates for a business loan to assist with expansion.According to the BCG model,how would TJ view Vendarama?

Accepted Answer

According to the BCG model, Vendarama would be viewed as a "star." This is because it is experiencing high growth and has a strong market share in a rapidly growing industry. As a result, it is likely generating substantial profits and has significant potential for continued expansion. This makes it an attractive investment opportunity for TJ Associates.

Question 11

Which strategy creates new products for present markets?

Accepted Answer

Product development involves creating new products for existing markets. This strategy aims to offer customers new and improved products that better meet their needs or solve their problems, while leveraging the company's existing market knowledge and customer base. This strategy is usually less risky than diversification, as it does not require entering new markets. Market penetration focuses on increasing sales of existing products in existing markets, while product penetration is not a common strategy.

Question 12

Shortly after the start of the new century,Wrigley,the largest chewing gum manufacturer in the world,bid $12 billion for Hershey chocolate.Wrigley was unable to acquire Hershey,but its acquisition attempt would have expanded Wrigley's product lines to include many forms of baking and eating chocolate.Since Wrigley did not produce any chocolate at the time of the takeover bid,this acquisition would be an example of which of the following?

Accepted Answer

Diversification is the process of expanding a company's product lines or businesses that are different from its current products or markets. Since Wrigley's acquisition bid for Hershey would have allowed Wrigley to expand its product lines to include chocolate, this would be an example of diversification. The other options are not applicable in this scenario.

Question 13

Fit,a health and fitness magazine,describes its readers as being female,18 to 25 years of age,single,high school graduates,and earners of above-average income.What would have identified this market segment?

Accepted Answer

The description of the target market (female, 18-25 years old, single, high school graduates, and above-average income earners) is what identifies this market segment. The magazine's target market strategy is the plan to focus on and appeal to this specific group of consumers.

Question 14

Due to recent hurricanes,orange growers in Florida have lost millions of dollars.As a result,some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp,a popular product that is more weather-resistant.What type of strategy are former orange growers who are now raising shrimp pursuing?

Accepted Answer

The former orange growers who are now raising shrimp are pursuing a diversification strategy as they are expanding into a new product category (raising shrimp) in response to the loss incurred due to hurricanes that damaged their existing orange groves.

Question 15

Wacker Ltd.a large profitable manufacturer of mouse pads located in Moose Jaw,Saskatchewan,has been the sole supplier of mouse pads for 10 large corporations in the United States.However,recent developments have included several lost contracts for business in the United States and the entrance of more large Asian specialty manufacturers specializing in producing computer peripherals and supplies.Looking at Wacker's strategic position from a potential investor's position,and according to the BCG,what is Wacker?

Accepted Answer

Wacker Ltd. is considered a "dog" according to the BCG matrix because it is facing lost contracts and increased competition, indicating a weak market position and low growth prospects.

Question 16

Which of the following terms would be used to describe Hispanic males between the ages of 12 and 19?

Accepted Answer

This group of people can be classified as a market segment, which refers to a specific group of consumers with similar needs, characteristics or behavior that a company can target with its products or services.

Question 17

What is the unique blend of product,distribution,promotion,and pricing strategies designed to produce mutually satisfying exchanges with a target market?

Accepted Answer

The unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market is known as the marketing mix.

Question 18

ConAgra Foods,Inc.has decided to sell all of its meat-processing plants and get out of its meat-processing business in order to raise the company's net profits.Which of the following statements describes how the sale of the processing plants will affect ConAgra's marketing mix?

Accepted Answer

Selling all of its meat-processing plants and getting out of its meat-processing business will have an impact on all of ConAgra's marketing mix elements. It will impact the product element, as the company will no longer offer meat products; it will impact the promotion element, as the company will need to adjust its advertising and other marketing communications to reflect the change in its business operations; it will impact the price element, as the company's overall cost structure and profitability will change; and it will impact the distribution element, as the company will need to adjust its supply chain and logistics to reflect the change in its operations.

Question 19

Tootsie Roll Industries has been in the candy business for over 100 years.Each year it produces 37 million Tootsie Roll candies and 16 million Tootsie Pop candies.During its 100+ years of operation,it has bought out 17 different candy brands.What type of strategy was it implementing?

Accepted Answer

The answer of Tootsie Roll Industries has been in the...

Question 20

Blockbuster rents and sells DVDs.When the retailer entered into the music retailing business,what type of strategy did it implement?

Accepted Answer

Blockbuster implemented a diversification strategy when it entered into the music retailing business as it was expanding into a new industry with new products.

Quiz 2: Strategic Planning for Competitive Advantage