Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
A)conforms to all FDA guidelines.
B)uses the same promotion and packaging for all segments.
C)decreases the cost of the physical plant.
D)stabilizes competition.
E)better serves customers' needs.

Question

Quizplus · Accepted Answer

Producing multiple cereals targeted at different types of users better serves customers' needs, which can lead to increased sales revenues and profits. Choosing the same promotion and packaging for all segments (B) would not effectively target each market and could lead to lower sales. Conforming to FDA guidelines (A) is necessary but does not address the question of multiple products for multiple markets. Decreasing the cost of the physical plant (C) may be beneficial, but it is not directly relevant to the question of multiple products. Stabilizing competition (D) may not be possible or desirable for a company like Kellogg's, which operates in a competitive market.

Kellogg's Has Several Cereals Targeted at Different Types of Users