When Kraft Foods launched Oreo brand cookies in China in 1996,they found that Oreo was too sweet for the Chinese palate,and the price was too low.Oreo reformulated a less-sweet chocolate-covered wafer and increased its price.This strategy is referred to as product extension approach.

Question

Quizplus · Accepted Answer

The strategy described is more accurately referred to as product adaptation. Kraft Foods adapted the Oreo to better fit the local tastes and preferences in China, which is a hallmark of product adaptation, rather than simply extending the existing product as is to new markets.

When Kraft Foods Launched Oreo Brand Cookies in China in 1996,they