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 U.S. 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

Market research indicates that the Brazilian culture and society are substantially different from the American counterparts. Therefore, the existing strategies in the U.S. may not work as well in Brazil. A2Z can introduce smaller "sachets" of shampoos and detergents that are priced lower to target the masses in Brazil. This strategy is likely to succeed because it is a common practice in developing countries where people have lower purchasing power and prefer to buy small quantities of products at lower prices.

A2Z Inc Is a Producer of a Huge Variety of Consumer