Nestlé When Consumers Think of Nestlé, They Probably Think of Chocolate

question 83

Multiple Choice

Nestlé
When consumers think of Nestlé, they probably think of chocolate. Historically, though, Nestlé's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafé, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestlé is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction. Critics claim that this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company.
-Refer to Nestlé.What adjustment to its product mix is Nestlé doing when it removes underperforming items from the market?

• A) Product line extension
• B) Product line contraction
• C) Product pruning
• D) Product line retraction
• E) Functional modification

Identify and explain the criteria for product defects under strict product liability.

Understand the requirements for liability under Section 402a of the Restatement of Torts (Second).

Learn how damages can be recovered under the Uniform Commercial Code (UCC).

Distinguish between different types of product defects (design, manufacturing, and warning).

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Definitions:

Firm's Effectiveness

A measure of a firm's success in achieving its goals and objectives, which can be evaluated through financial performance, market share, customer satisfaction, and other metrics.

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Market Share Analysis

Marketing analytics tool that measures the percentage of total market sales captured by a brand, product, or firm.

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