Question

Many of the? fruit-flavored beers most likely are operating under what type of? strategy?

A. Cost Leadership

B. Focus

C. Differentiation

D. Both A and C

Answer 1

A fruit flvoured beer will definitely will not be the cheapest beer in the market since it is likely to cost more because of addition of ingredients into the beer making. Therefore, cost leadership strategy is not the right strategy for introducing fruit – flavoured beer.

A marketing strategy in which a company concentrates its resources on entering or expanding in a narrow market or industry segment.
A focus strategy is usually employed where the comopany knows its segment and has products to competitively satisfy its needs
Since the narrow market segment has not been defined here, we cant say definitely whether it is a focus strategy.

Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service.

Here the firm is trying to distinguish its product i.e. Beer from other similar beers by making it fruit flavoured.

Therefore , the correct answer in this case is “ C. Differentiation”

ANSWER ; C ) DIFFERENTIATION