Question
In: Operations Management
17. Acknowledging the demand for healthier drinking options, a large beverage company has developed a new...
17. Acknowledging the demand for healthier drinking options, a large beverage company has developed a new line of beverages with no calories and no artificial sweeteners to add to its existing product line. Which of the following approaches to market segmentation is the beverage company using?
a. Broad low-cost strategy
b. Focus differentiation strategy
c. Medium market segmentation strategy
d. Focus low-cost strategy
e. Broad differentiation strategy
Solutions
Expert Solution
By developing the new line of beverages, the company wants to target the specific groups of health conscious individuals who would not like any calorie or sugar in their drink. Since it is a small and focussed market, the strategy in case is focussed dfferentiation strategy. Option b is right.
Options a and d are uled out as we are not talking cost here. Broad differentiation happens across huge market or industry wide, while Medium market segmentation strategy is not relevant response.
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