Question

In its early years of operation, mgp ingredients inc. sold ethanol and animal feed. a steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches. what would these low-carb products be an example of?

a. a repositioning strategy
b. an addition to an existing product line
c. a new product line
d. a discontinuous innovation

Answer 1

MGP Ingredients Inc.'s development of low-carb wheat proteins and starches represents the creation of a new product line, indicating a strategic shift to enter a new market segment and diversify product offerings.

Step-by-step explanation:

MGP Ingredients Inc., after experiencing a significant drop in sales of ethanol and animal feed, shifted focus to develop the first low-carb wheat proteins and starches. This shift can be classified as a new product line. Such a strategic move is undertaken by companies aiming to diversify their offerings and entering into a new market segment with products that are distinct from existing ones. The low-carb wheat proteins and starches represent a new opportunity in response to changing market demands, notably the rise in consumer interest toward low-carbohydrate diets.