Question

Mont Blanc uses a differentiation strategy that focuses on the social and emotional aspects of their product to appeal to a specific consumer segment. Which of the following initiatives would most be in keeping with their strategy?
Multiple Choice

an increase in the service warranty from 1 year to 2 years

an agreement with OfficeMax to more prominently show Mont Blanc pens in the writing instrument section of their stores

the release of a new pen that uses a smoother roller ball effect

an agreement with online providers to offer discounted pens

an engraving service for pen owners who may wish to will their pens to loved one

Which of the following would NOT be a reason for Bic to decide to compete in Mont Blanc’s market?

Multiple Choice

Bic’s reputation would be detrimental when competing in Mont Blanc’s target market.

Bic’s marketing department isn’t geared to addressing Mont Blanc’s target market.

Bic is a large publicly traded company with significant financial resources.

Bic’s manufacturing facilities would need to be retooled to compete in Mon Blanc’s target market.

Bic’s distribution capabilities are not well designed to reach Mont Blanc’s target market.

Answer 1

Answer:

an engraving service for pen owners who may wish to will their pens to loved one.

Bic is a large publicly traded company with significant financial resources.

Explanation:

Mont Blanc uses differentiation strategy to address to consumer social and emotional needs. The best strategy will be to provide pen with name or a special message engraved in the pen according to the consumer needs. This will focus on consumer social needs and pen owners will love to will their pens to their loved ones.

Bic is large publicly traded company which has significant financial resources available to it. Bic will not wish to compete with Mont Blanc as it will require financial resources to capture its target market. Bic pens are cheaper and consumers are attracted to it because of its low price and ease in availability.