Freshmornings Is One of the Breakfast Cereals Produced by Kenny's

question 50

Multiple Choice

Freshmornings is one of the breakfast cereals produced by Kenny's Ltd.Marketers at the company analyze that the product is experiencing a slowdown of growth in both sales and profits.Within a year, due to changes in consumer needs, the product sales have consistently decreased.They decide to keep the product but reduce the marketing support in an attempt to reap some minor profits at this stage in the life cycle. Which strategy were the marketers at Kenny's adopting when they decided to reduce the marketing support for Freshmornings to reap some minor profits?

• A)price moderation
• B)price skimming
• C)harvesting
• D)line extension

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Gross Profit Percentage

A financial ratio that expresses the gross profit as a percentage of sales revenue, indicating the efficiency of production and cost management.

Cost of Goods Sold

Costs directly related to the creation of a company's sold products, involving expenses for materials and workforce.

Net Income

The total earnings of a company after subtracting all expenses from revenues, which includes costs, interest, taxes, and other expenditures.