After becoming a successful national brand, Penelope's Pizza has made the decision to expand overseas and enter the global market. Using a globally integrated marketing plan, Penelope's plans to enter the pizza market in Germany, Japan, and India. The CEO wants to use an adaptation plan in the new markets, and thus offer kielbasa pizza in Germany, sushi pizza in Japan, and vegetarian pizza in India. The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable. Which statement, if True, supports the CEO's argument?
A) Traditionally, all three markets are slow to adapt to the idea of fast food, and prefer meals with known ingredients that are familiar to them.
B) The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent.
C) Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume American fast food as a status symbol of increasing wealth.
D) The current economic slump has decreased the volume of sales for all fast foods on a global basis.
E) Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

Question

Quizplus · Accepted Answer

A) Choice A says that these three markets are unlikely to embrace a new fast food product with mostly foreign ingredients. Thus the CEO's plan-to adapt the product and the advertising to focus on cultural preferences and known ingredients that are familiar and readily available locally-makes sense. Choices B and E would support the argument made by the advertising firm for standardization, since adaptation would raise costs. Choice C also supports the advertising firm's stand, as it would emphasize fast food as sold in America, thus standardization. Choice D does not support either argument.

After Becoming a Successful National Brand, Penelope's Pizza Has Made