In the Early 1990s,Jarrah Was the First Brand in the Australian

question 71

Multiple Choice

In the early 1990s,Jarrah was the first brand in the Australian market to offer pre-prepared,instant coffee mixes in flat and frothy varieties.The brand featured exotic flavourings with cheeky names such as Cheeky 'Cino Cappuccino,White Choc-a-Mocha Latte,Mocha Truffle Latte,Vanilla Thriller Latte and Crème Caramel Latte.At the time,the launch was considered high risk and did not enjoy a big budget.Accordingly,the marketers devised a plan which involved a limited scale launch first in the regional Victorian town of Ballarat.Only when that was successful was the brand launched in Tasmania.Over time,the brand was launched in more and larger towns and cities around the country.The purpose of this was to gauge customer reactions,minimise the company's risk exposure,spread out investment outlays and fine tune elements of the marketing mix.This practice is best described as a planned ________.

• A)test marketing
• B)focus group survey
• C)scaled commercialisation
• D)post-testing
• E)roll-out

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Definitions:

Tax Loss Carry Forward

A tax rule allowing businesses or individuals to use a net loss in one period to offset a profit in future periods for taxation purposes.

Interest Tax Shield

The reduction in income taxes that results from the deductible nature of interest payments on debt.

Debt Financing

A method by which companies or governments raise capital by borrowing funds, usually from a financial institution or through the issuance of bonds.

Value of a Firm

An assessment of the total worth of a business, considering all sources of equity and debt.