Frito-Lay Is Considering Whether to Buy the Cracker Jack Brand

question 147

Multiple Choice

Frito-Lay is considering whether to buy the Cracker Jack brand of caramel popcorn from Borden,Inc.Frito-Lay research shows that Cracker Jack has a strong brand equity.But,Cracker Jack's dollar sales market share and pound (a surrogate for unit) volume market share have declined recently and trailed the Crunch 'n Munch brand as shown in the Figure 14-A marketing dashboard above.Borden's management used an above-market,premium pricing strategy for Cracker Jack.As a Frito-Lay marketer studying Cracker Jack,calculate Cracker Jack's price premium.What position in Figure 14-A above represents the price premium of Cracker Jack?

• A)"A"
• B)"B"
• C)"C"
• D)"D"
• E)"E"

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Definitions:

Corporate Conglomeration

The process or result of a single corporation owning numerous companies across various industries, often to diversify business operations and reduce risk.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers, competitors, and the effectiveness of marketing programs.

Oscar-Contending Fare

Films considered as potential nominees for the Academy Awards, recognized for their artistic, technical, or narrative quality.

Media Conglomerate

A large company that owns numerous companies involved in various media ventures, including television, radio, publishing, and the internet.