A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels, and shampoos to detergents. It is a market leader in the United States and is planning to tap the immense potential in the emerging markets. Market research, however, indicates that the Brazilian culture and society are substantially different from their American counterparts. If the company wants to target the masses, which of the following options is most likely to succeed?
A) A2Z can use a price skimming strategy to increase market share.
B) The company's existing strategies in the United States will work just as well in Brazil.
C) A2Z can introduce smaller "sachets" of shampoos and detergents that are priced lower.
D) The company can introduce large family packs of shampoos and soaps even if they are priced higher than competitors.
E) A2Z can use a predatory pricing strategy to capture the market.

Question

Quizplus · Accepted Answer

Introducing smaller "sachets" of shampoos and detergents that are priced lower is the most likely to succeed in targeting the masses in Brazil. Market research indicates that the Brazilian culture and society have different consumption patterns and preferences, so adapting to these preferences will be crucial for success. Introducing smaller packs at lower prices is likely to appeal to the cost-conscious consumers in Brazil. The other options may not be as effective in this market, as price skimming may not be viable in a price-sensitive market, existing strategies may not be adapted to the local culture, introducing large family packs at a higher price may not appeal to cost-conscious consumers, and predatory pricing may lead to a price war with competitors.

A2Z Inc Is a Producer of a Huge Variety of Consumer