Narrative 7-1 India Has the Fastest-Growing Demand for Consumer Products in the in the World

question 25

Multiple Choice

Narrative 7-1
India has the fastest-growing demand for consumer products in the world. In recent years,Coca-Cola attempted to enter the Indian market once again. Coca-Cola's first attempt to enter the Indian market a decade earlier was grossly mismanaged,which led to the company losing 20 billion Indian rupees. In that first attempt,Coca-Cola purchased Thumbs Up,the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke while maintaining the Thumbs Up distribution strategy. For its return to the market,Coca-Cola built five plants,cut costly staff,revamped transport,shrunk bottles,and made the bottles lighter to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market.
-Refer to Narrative 7-1. Which of the following is reflected by the need for Coca-Cola to create a promotional strategy specifically targeted to the Indian market?

• A)a diversification strategy  
• B)an awareness of cultural differences  
• C)the desire to maintain a high contribution margin  
• D)an insular approach to strategy

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Definitions:

Breakfast Menu

A selection of morning food items offered by restaurants or eateries, typically including options such as eggs, pancakes, coffees, and juices.

Lunch/Dinner Menu

A list of food items and dishes available for selection at a meal, typically outlined by restaurants for their lunch or dinner service.

Licensing

A legal agreement permitting one party to use another's intellectual property, rights, or technologies under defined conditions.

Market Entry Strategy

The planned method of delivering goods or services to a new target market and establishing a foothold in it, which could involve exporting, licensing, franchising, or direct investment.