Question

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It also charges higher than what other health drink companies charge. Which of the following statements would hold true for this company?
a) It offers generic and standardized products.
b) It does not invest in the field of market research.
c) It spends little on research and development.
d) It invests heavily in advertising and brand building.
e) It competes with its rivals on the basis of price.

Answer 1

Answer:

d) It invests heavily in advertising and brand building.

Explanation:

The statement that would hold true for this company is that it invests heavily in advertising and brand building as the statement indicates that company is known for launching drinks with flavors which are different from what are offered in the market and you can inferred from this that they have manage to be known for this by using communication strategies to promote their drinks and build their brand.

The other options are not right because: the company is known for launching different flavors which means that option a is false. The company knows its market and because of that, option b is false. Also, the company makes experiments to develop new flavors which indicates that option c is false. Moreover, it has higher prices than other drink companies which means that option e is not true.

Answer 2

Answer:

D) It invests heavily in advertising and brand building.

Explanation:

One of the greatest step to take in establishing a strong presence in the market place is putting in great efforts towards innovative advertising and ensuring one's brand is built strong, that way, there is established trust and consumers will stay faithful to your brand.