Question 1

Data released by ACNielsen show that sales of packaged food companies such as General Mills, Kellogg's, and Sara Lee only improved 1.4 percent in a period lasting from February 2004 to February 2005, while sales of middlemen's brands grew by more than 3.2 percent during the same period. This means:

Accepted Answer

The growth in sales of middlemen's brands compared to the slower growth of packaged food companies suggests that the former's lower prices could be a factor attracting more consumers.

Question 2

Many of the roses used in floral arrangements by U.S. florists are grown in Ecuador. An Ecuadorian company called Farm Connection is trying to develop a brand preference for its roses. To do this, it could:

Accepted Answer

Creating consumer awareness of the superiority of Farm Connection brand roses would help develop a brand preference by highlighting the unique qualities and benefits of their roses, distinguishing them from competitors.

Question 3

What kind of branding strategies can the manufacturers of Forever storm doors, Armstrong flooring, and Trex Wood-Polymer lumber most effectively use?

Accepted Answer

These products are typically sold as replacements for existing items in homes, making a strategy focused on selling in the consumer market as replacement goods most effective.

Question 4

Since the type of doors and windows used to build a house is a decision typically made when a house is under construction, why would Peachtree doors and windows buy an ad in Better Homes & Gardens?

Accepted Answer

Peachtree is using a strategy of branding fabricating parts and materials by advertising in Better Homes & Gardens, aiming to influence homeowners or those planning to build homes to consider their products during the construction phase. This approach helps in creating brand awareness and preference among consumers who can then request or prefer Peachtree products in their construction projects.

Question 5

How might Whirlpool benefit if appliances it manufactured were sold at Sears under the Kenmore brand name?

Accepted Answer

Selling appliances under the Kenmore brand at Sears would enable Whirlpool to use its production resources and working capital more effectively, increase plant capacity, and generate additional sales volume, thus encompassing all the benefits listed.

Question 6

From the manufacturer's viewpoint, selling all or part of its output under a middleman's brand:

Accepted Answer

Selling a significant portion of output under a middleman's brand can lead to dependency on the middleman, potentially giving the middleman considerable leverage over the manufacturer. This can place the manufacturer at a disadvantage, especially if the middleman becomes a dominant customer.

Question 7

Why does the A&P supermarket chain find it advantageous to market its own line of canned fruits and vegetables under the Ann Page name?

Accepted Answer

By selling its own brands at lower prices, A&P can attract price-sensitive customers and maintain control over pricing and profits, without relying on external brands' pricing strategies.

Question 8

Many large retailers and some large wholesalers have their own brands because:

Accepted Answer

Retailers and wholesalers have their own brands to increase control over pricing, marketing, and distribution, allowing them to better target their market.

Question 9

Which of the following statements about middlemen's brands is True?

Accepted Answer

Middlemen, such as retailers and wholesalers, can often sell their own brands (also known as private label brands) at lower prices compared to national brands while still maintaining higher gross margins. This is possible because they can control production costs, avoid marketing and advertising expenses typically associated with national brands, and leverage their direct access to consumers.

Question 10

Using the company name for branding purposes within a product line is called _____ branding and makes it simpler and less expensive to introduce new, related products into a line.

Accepted Answer

Family branding involves using the company name for branding purposes across a product line, making it easier and more cost-effective to introduce new, related products.

Question 11

Krups is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Krups name and carries on the Krups's reputation for high quality. Krups uses _____ branding.

Accepted Answer

Krups uses family branding because it markets all its products, from coffee makers to ice cream makers, under the same Krups brand name, leveraging the brand's reputation for high quality across different product lines.

Question 12

In 2005, Campbell Soup launched a variety of chilled soup packaged in sterile cartons that are more commonly used for fruit juices. This new product and Campbell's microwaveable bowls, which were introduced in 2004, are both marketed under the Campbell's name. This is an example of the use of _____ branding.

Accepted Answer

Family branding is used when multiple products are marketed under the same brand name, as is the case with Campbell's variety of chilled soup and microwaveable bowls both being marketed under the Campbell's name.

Question 13

In 2005, Campbell Soup launched a variety of chilled soup packaged in sterile cartons that are more commonly used for fruit juices. This new product and Campbell's microwaveable bowls, which were introduced in 2004, are both marketed under the Campbell's name. The reason Campbell is using this branding strategy is due to:

Accepted Answer

The answer of In 2005, Campbell Soup launched a variety...

Question 14

McCormick markets spices and flavorings that are recognized by people who cook as being high-quality products. Every item the company sells bears the McCormick brand. This company is using _____ branding.

Accepted Answer

Family branding is used when a company sells all its products under one brand name, which is the case with McCormick selling all its spices and flavorings under the McCormick brand.

Question 15

Ralston-Purina puts a checkerboard on all of the brands of cereals it manufactures. This is an example of _____ branding.

Accepted Answer

Family branding is when a company uses one brand name for all its products in a product class. Ralston-Purina using a checkerboard on all of its cereal brands is an example of this, as it creates a family identity for its products.

Question 16

Del Monte Foods puts a distinctive red and yellow shield containing the words Del Monte on all of its canned fruits and vegetables. Del Monte Foods uses _____ branding.

Accepted Answer

Family branding is used when a company uses the same brand name for all its products in a product line, creating a family of products that are easily recognizable to consumers. Del Monte using a distinctive red and yellow shield with the words Del Monte on all of its canned fruits and vegetables is an example of family branding, as the same brand identity is applied across a range of products.

Question 17

The maker of Lava soap makes several different hand-cleaning products, including Lava heavy-duty hand cleaner towels, all under the Lava brand. This is an example of the use of:

Accepted Answer

A family branding strategy is used when a company markets multiple products under the same brand name. In this case, the maker of Lava soap uses the Lava brand for different hand-cleaning products, which is a classic example of family branding.

Question 18

One of the advantages of using family branding is that the strategy:

Accepted Answer

Family branding allows a company to leverage the existing reputation and marketing of its brand when introducing new, related products, making it less expensive and more efficient than marketing each product independently.

Question 19

One of the difficulties with using family branding is that the strategy:

Accepted Answer

Family branding requires maintaining a consistent quality across all products because the reputation of one product affects the others.

Question 20

Assume Kellogg's is planning to market a line of mobile phones. Which of the following brand strategies would Kellogg's be LEAST likely to use?

Accepted Answer

Kellogg's is known for its food products, so using the Kellogg's name for mobile phones would not align with their established brand identity and could confuse consumers.

Quiz 10: Brands, Packaging, and Other Product Features