Question

If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy.

a) run-out
b) immediate drop
c) slow-down
d) phase-out
e) drop-down

Answer 1

7-UP is using a phase-out deletion strategy for its Diet 7-Up with Vitamins product, which is a gradual withdrawal from the market.

Step-by-step explanation:

Phase-out deletion strategy involves gradually reducing the availability of a product until it is eventually discontinued. This strategy allows the company to minimize losses by not investing in marketing efforts for the declining product.

If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a phase-out deletion strategy. A phase-out strategy is characterized by a gradual withdrawal of a product from the market. Companies typically allow existing supplies to run out without replenishing them or investing further in promotion or production. This is unlike an immediate drop strategy, which involves abruptly removing the product from the market, or a run-out strategy, where a company might sell off remaining inventory quickly, often at a reduced price.