Question 1

Harry & David is a catalogue retailer. At its inception, the company sold fruit baskets and popularized the "Fruit of the Month" concept. Since then the company has abandoned this restrictive definition of itself, expanded its product mix, and used its Promotion to explain that it is the source of the perfect gift for every occasion. Harry & David used a _________strategy.

Accepted Answer

Harry & David's shift from selling only fruit baskets to positioning themselves as the source of the perfect gift for every occasion indicates a repositioning strategy. They have broadened their image and target market beyond just fruit baskets and leveraged their brand name and reputation to appeal to a wider audience.

Question 2

Mass merchandisers, such as Sears Canada, Zellers, and The Bay, can_________ by adding designer clothes sections to their stores.

Accepted Answer

By adding designer clothes sections to their stores, mass merchandisers can trade up. This means they are offering a higher-priced and higher-quality product, which can attract a more affluent customer base and lead to increased profits.

Question 3

Pepsi manufacturers a number of different brands, such as Fritos-Lay. Fritos-Lay recently unveiled their 2014 line of chip products, which, instead of being 500gram
Bags, were now 450gram bags with 'enhanced flavor,' although no consumer could tell the difference with enhanced flavor. The new 450gram bags sold at the same price as the original 500gram bags. This is an example of:

Accepted Answer

This is an example of downsizing, where the company reduces the amount of product in the package while maintaining the same price.

Question 4

The Nike Swish, Adidas symbol, and Apple's apple are examples of:

Accepted Answer

Branding is the process of creating a unique identity for a product or service. The Nike Swish, Adidas symbol, and Apple's apple are all examples of branding because they are all unique symbols that represent the respective companies.

Question 5

Snickers candy bar was repositioned from a candy bar to a snack food through commercials that showed the busy people satisfying their hunger with a Snickers bar. Mars, Inc., used this strategy with its Snickers bar to:

Accepted Answer

Repositioning a product or brand involves targeting a new market, and in this case, Mars, Inc. repositioned Snickers from a candy bar to a snack food to reach a wider audience beyond those who just wanted a sweet treat. The commercials featuring busy people satisfying their hunger with Snickers were aimed at consumers looking for a quick and satisfying snack option, thus expanding Snickers' market.

Question 6

Kmart stores hoped to add perceived value to the store's merchandise by adding the Martha Stewart product line, which is perceived as being of a higher quality. This product line addition was an example of:

Accepted Answer

Trading up involves adding higher quality or premium products to a company's product line to increase the perceived value of the brand. Adding the Martha Stewart product line is an example of trading up because it is perceived as higher quality. Trading down, on the other hand, involves adding lower-priced products to a company's product line to attract price-sensitive customers. Top-down and bottom-up marketing refer to different approaches to marketing strategy development and are not relevant to this situation.

Question 7

A brand name is:

Accepted Answer

A brand name refers to any word, device, or combination of these that distinguishes a seller's goods or services from those of others in the market. It can be a word, phrase, symbol, design, sound, shape, or colour. It is the name that identifies and distinguishes a brand from its competitors.

Question 8

Which of the following product life cycle management strategies requires a change in the physical product?

Accepted Answer

Changing the value offered can often involve making modifications to the physical product in order to enhance its perceived value or utility. The other options (finding new users, creating new use situations, increasing use) can potentially be addressed through marketing or promotional efforts without necessarily requiring changes to the product itself.

Question 9

All of the following are factors that trigger product repositioning as a marketing action EXCEPT:

Accepted Answer

Copying competitors' sales promotion strategies to increase trial and repeat purchase behavior is not a factor that triggers product repositioning. The other options, such as reaching a new market, catching a rising trend, and changing the value offered to consumers, are all potential triggers for repositioning a product in the marketplace.

Question 10

Airlines have added more seats, thus reducing leg room, and eliminated extras, such as snack service and food portions. This is an example of:

Accepted Answer

Trading down refers to reducing the quality or quantity of a product or service in order to offer it at a lower price point. In this case, airlines are reducing the amount of leg room and eliminating extras in order to offer lower ticket prices, which is an example of trading down.

Question 11

A car manufacturer revealed a type of gas tank, that, even though, you gauge says 'empty' you still have an additional 50km left in the tank to get you to the nearest gas station. This is an example of:

Accepted Answer

The car manufacturer is adding a feature (additional 50km range even when gauge shows empty) while using higher quality product materials (gas tank that can hold more fuel).

Question 12

New Coke was repositioned as a slightly sweeter, less filling soft drink because the Coca-Cola Company discovered that its 1984 market share in supermarkets was 2 percent behind Pepsi. This product repositioning strategy was:

Accepted Answer

The decision to reposition New Coke as a slightly sweeter, less filling soft drink was a reaction to a competitor's position, specifically Pepsi's market share being 2 percent ahead in supermarkets in 1984.

Question 13

Downsizing is reducing the:

Accepted Answer

Downsizing involves reducing the content of a package while keeping its size the same or even increasing the package price, often without a clear notification to the consumer. This strategy does not directly relate to the quality of materials, the number of product features, or the product's price in the sense of reducing the cost to the consumer.

Question 14

Since the creation of the Hershey candy bar over 100 years ago, the price of chocolate has fluctuated, but the price of the candy bar has slowly risen. In fact, when the price of chocolate had dramatic price fluctuations over a three-year period, the price of a Hershey's candy bar remained the same. When the price of chocolate was very high,
Hershey's was able to maintain its profits by making the bars smaller. Hershey's engaged in:

Accepted Answer

Hershey's engaged in downsizing to maintain profits when the price of chocolate was high. This means that they reduced the size of the candy bar while maintaining the same price, rather than trading up to a higher quality product or using top-down or bottom-up marketing strategies.

Question 15

TD bank always uses green colouring in all of their advertisements, while RBC always uses blue colouring in all of their advertisements. These are part of their respective:

Accepted Answer

Green colouring in TD bank's advertisements and blue colouring in RBC's advertisements are part of their respective brand names. A brand name is a distinctive name identifying a product or manufacturer.

Question 16

Pretzels were first introduced as a salty snack. Later the product was repositioned as a low-fat snack to:

Accepted Answer

Repositioning pretzels as a low-fat snack was likely done to catch the rising trend of consumers seeking healthier, low-fat snack options.

Question 17

Sealy, the largest manufacturer of mattresses in North America, recently set out to redefine its place in the bedrooms of consumers. No longer was it going to be associated as a mattress company. Henceforth, the name Sealy was going to be known as the world's leading "sleep wellness provider." This is an example of:

Accepted Answer

Repositioning involves changing a company's image in the eyes of the consumers. In this case, Sealy is shifting its focus from being solely a mattress company to a provider of overall sleep wellness.

Question 18

An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the need of this potentially large market. As a result moisturizing creams like Oil of Olay are now positioned as "age-defying" creams. This is an example of which of the four factors that may trigger a repositioning action?

Accepted Answer

Catching a rising trend (aging baby boomer population) has led to a repositioning of moisturizing creams like Oil of Olay as "age-defying" creams to satisfy the need of this potentially large market.

Question 19

A hotel chain has stripped out all non-essential services such as breakfast and Wi-Fi. In doing so, the hotel chain is:

Accepted Answer

By removing non-essential services such as breakfast and Wi-Fi, the hotel chain is reducing the number of features offered in their product. They may also be reducing the price or quality of the product, although that is not explicitly stated.

Question 20

For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product in competitive
Situations. Recently, in response to declining sales of the Frosted Flakes, the
Cereal-maker has adopted a new series of advertisements that show adults admitting they enjoy Frosted Flakes, too. Kellogg's is attempting to:

Accepted Answer

Kellogg's is attempting to reposition its product by changing the perception that Frosted Flakes is only for children and showing that adults enjoy it as well. This is a common strategy used by companies to revitalize a product and attract new customers.

Quiz 11: Managing Products and Brands