Question

Active Beverages targets the same people who watch the Gravity Games and enjoy skateboarding, in-line skating, mountain biking, and other extreme sports. It makes high-energy drinks for this target market. It does not attempt to make any drinks that are not targeted to this market. Active Beverages uses a(n) ________ strategy.

Answer 1

Answer:

D) limited-line strategy

Explanation:

A limited-line strategy is a type of product line strategy that focuses on selling limited variations of a product to a specific target market. In other words, the product range is limited to only a few variations of the original product.

Usually product line strategies focus on expanding their target market by offering similar products to different targets, but some products have a very loyal customer base or are so exclusive that manufacturers limit the number of products sold as well as the variations of the products. E.g. luxury car manufacturers like Ferrari or Rolls Royce only offer a couple of car models that are targeted to very wealthy and exclusive clients.

In this case, Active Beverages operates as a niche product since it limits both the product range and the target market.

Answer 2

Answer:

Limited line strategy.

Explanation:

Limited line strategy is defined as a product line that offers uniform product and only small variations in the output.

Active be stages makes only energy drinks for its customers and does not try to give them any other drink.

Active beverage targets individuals that enjoy skateboarding, in-line skating, mountain biking, and other extreme sports. They will need a high energy beverage and this is the only product supplied.

This is a limited line strategy.