Scenario 12.1 Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.
About 18 months later, a series of competitors' ads was run claiming that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste.
Refer to Scenario 12.1. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)
A) strategy for the maturity phase.
B) phase-out product deletion strategy.
C) immediate-drop decision.
D) pullout product deletion policy.
E) return to test marketing.

Question

Quizplus · Accepted Answer

This action represents an immediate-drop decision, where the company decides to stop production and sell off remaining inventory quickly, often due to poor performance or negative perceptions.