Hecter & Gable Inc.marketed three brands of fabric softeners called Charms,White Cloud,and Lavender Days in the early 1990s.The industry for fabric softeners and allied products was typically described as a low-growth industry.In 1993,Hecter & Gable spent $3.1 million to advertise Charms and was rewarded with sales of over $312 million.In that same year,it spent nearly $6 million marketing White Cloud,but the product had disappointing sales of less than $63 million.Lavender Days,with hardly any promotion at all,had $4.6 million in sales.According to the General Electric Portfolio Model,which of the following statements about these three products best describes them?
A) Charms was in the red zone,while White Cloud and Lavender Days were in the green zone.
B) In spite of the difference in sales,both White Cloud and Charms were in the yellow zone.
C) Due to the low market growth in the toilet paper industry,Charms was low in business strength.
D) White Cloud and Lavender Days were low in industry attractiveness and in business strength and were in the red zone.
Correct Answer:
Verified
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