Noting that the market segments for non-dairy ice cream and sorbets are not yet saturated, these products according to the Stages of Growth theory would fall under the: a. Maturity Stage b. Introduction Stage c. Growth Stage d. Decline Stage Kande's Delights' ability to offer 24 new natural flavors in 16 oz containers to major supermarkets island wide, while offering other sizes to hotels and restaurants are prime examples of the company: (Choose the TWO best options for your answer). a. Increasing Market Penetration b. Steadying their Existing Product or Service c. Achieving Social Expansion d. Extending their Product Lines
Answer (1)
The Stages of Growth theory , also known as the Product Life Cycle, is a concept used in business to describe the progression of a product through four typical stages of its life: Introduction, Growth, Maturity, and Decline.
Introduction Stage : This is where the product is launched into the market. Sales growth is typically slow as the market begins to become aware of the product.
Growth Stage : After successful introduction, demand and sales start to increase. The market becomes more aware of the product, and the product gains market acceptance, resulting in increased revenues and profits.
Maturity Stage : The product has achieved widespread market acceptance, and sales growth begins to slow as the market becomes saturated.
Decline Stage : Eventually, the product's sales and profits begin to fall as newer technologies or changes in consumer preferences lead to reduced demand.
Given that the non-dairy ice cream and sorbets markets are described as not yet saturated, these products fall under the c. Growth Stage . During this stage, sales are rapidly increasing, and businesses can see substantial profit growth.
Now, regarding Kande's Delights:
Extending their Product Lines : By offering 24 new natural flavors in 16 oz containers, Kande's Delights is extending its product line. This allows them to cater to a broad range of tastes and preferences, which can attract new customers and satisfy existing ones who crave variety.
Increasing Market Penetration : By distributing these products island-wide to supermarkets and offering different sizes for hotels and restaurants, they are effectively increasing their market penetration. This means they are trying to capture a larger share of the market by making their products more accessible to a wider audience.
Thus, for Kande's Delights, the best options that describe their strategy are:
a. Increasing Market Penetration
d. Extending their Product Lines
These strategies are essential in maximizing the reach and potential sales of their expanding product offerings.
