Question

Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products. The campaigns mainly focus on the features and benefits of the products that differentiate the cereals from the competition. Nutrimax Corp. is most likely to be using which of the following strategies?

a. Market penetrationb. Product developmentc. Product proliferationd. Market developmente. Capacity control

Answer 1

a. Market penetration

Step-by-step explanation:

Market penetration strategy is a product promotion approach through which a company seeks to gain a greater share in markets it already operates. The strategy is used to increase sales volumes in existing markets.

Market penetration applies where similar goods and services exist. A company uses the low-price technique or present its products as superior as compared to those of its rivals. The objective is to draw customers' attention to the company's products. Advertising using special features and benefits presents the products as unique and superior, thereby attracting customers' attention.