Question

You have been hired to advise a food company that is considering whether it should sell one, both, or neither of its two breakfast brands. Here are the facts you are given: Brand A commands a market-leading share in the oatmeal category. A has a large and stable base of loyal customers. However, this category is unlikely to grow in the foreseeable future, as oatmeal preparation takes time and consumers are increasingly focused on convenience. Brand B is a market leader in the small but rapidly expanding category of grab-and-go breakfast wraps. However, it won't be easy to stay ahead of the competition; unless B is sold, the company will need to invest heavily in research and development of healthy fillings and innovative packaging. What is your best advice?

a. sell brand A
b. sell brand B
c. do not sell either brand A or brand B
d. sell brands A and B

Answer 1

Option C is correct.

Step-by-step explanation:

When you've been recruited to inform a food company to think about selling one, both, or none of its both brands for breakfast. These are the facts you get: Brand A controls a market-leading share in the segment of oatmeals. A has a strong and secure base of loyal clients.

Such category, moreover, is difficult to develop in the future, as production of oatmeal takes some time and customers are mainly focusing on comfort. Brand B is the leader in grab-and-go breakfast bags, a minor but rapidly growing segment. Nonetheless, staying ahead in the race won't be so easy; once B is sold, the firm will have to invest in the research and innovation of safe fillings and creative packaging.

The best recommendation, instead, is not to market either brand A or brand B.