Sweet Leaf Tea,a Texas-based maker of bottled iced tea,is a small but fast-growing firm that has gained a loyal following for its use of fresh,organic ingredients in its beverages.Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup,Sweet Leaf refused because of the company's mission to provide a high-quality,organic beverage to consumers.The 11-year old company has 50 employees,and its products are available in 30% of the U.S.market.Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following,if true,would best support the argument that Sweet Leaf Tea should implement a corporate-level strategy of market penetration?
A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.
B) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.
C) Sweet Leaf Tea can achieve growth by aggressively selling its beverages in current markets where loyal customers will help boost word-of-mouth.
D) Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on regional grocery-store chains rather than big box national retailers.

Question

Quizplus · Accepted Answer

C)A corporate-level strategy of market penetration means that Sweet Leaf would boost sales of its current products by more aggressively selling and marketing in its current markets.Loyal customers would most likely spread the word about the beverage through word-of-mouth.Choice A refers to a strategy of vertical integration,while Choice B involves a strategy of diversification.Price and competitors' marketing efforts fail to support the argument that Sweet Leaf should implement a market penetration strategy.

Sweet Leaf Tea,a Texas-Based Maker of Bottled Iced Tea,is a Small