Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products. The campaigns mainly focus on the features and benefits of the products that differentiate the cereals from the competition. Nutrimax Corp. is most likely to be using which of the following strategies?
A) Market penetration
B) Product development
C) Product proliferation
D) Market development
E) Capacity control

Question

Quizplus · Accepted Answer

The focus of Nutrimax Corp.'s advertising campaigns on the features and benefits of its existing products suggests that the company is using a market penetration strategy. This strategy involves increasing market share for existing products in existing markets through aggressive marketing efforts. By highlighting the unique features of their products, Nutrimax Corp. is likely trying to convince customers who are already in the market for breakfast cereals to choose their brand over competitors. Product development involves creating new products for existing markets, while product proliferation involves adding new product lines to the company's portfolio. Market development involves expanding into new markets, and capacity control involves managing production capacity. None of these strategies are indicated by the company's marketing efforts as described in the scenario.