Sweet Leaf Tea, a Texas-Based Maker of Bottled Iced Tea

question 29

Multiple Choice

Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation?

• A)New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the bottles.
• B)Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs.
• C)Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at competitive prices.
• D)Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers of all ages.

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Definitions:

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