Exam 19: Product Concepts

Nestlé When consumers think of Nestlé, they probably think of chocolate. Historically, though, Nestlé's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafé, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestlé is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction. Critics claim that this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestlé.Nestlé's quest is to make some of its existing products more nutritious and provide a health benefit.This is an example of which type of product modification?

When Honda automobiles first entered the U.S.market,they were small and not very durable.However,over the years,Honda has modified its automobiles to be one of the most dependable cars on the market.This change in dependability and durability is representative of which type of product modification?

_____ products are products that are not known about or not actively searched for by consumers.These products require aggressive personal selling and highly persuasive advertising.

What purposes does branding serve?

The brand name of a manufacturer is known as a(n)_____ brand.

Binney & Smith's Crayola makes various products,all targeted toward elementary schoolchildren.Drawing,painting,and supply items are sold at convenience stores,toy stores,and grocery stores.Clothing is sold in department stores.Crayola might arrange its product items in the following way: What is the product mix width for Crayola? What is its product line depth?

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:

A(n)_____ brand is one owned by the wholesaler or retailer.

Nestlé When consumers think of Nestlé, they probably think of chocolate. Historically, though, Nestlé's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafé, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestlé is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction. Critics claim that this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestlé.One new product Nestlé intends to introduce includes fiber added to chocolate.The packages will include the fact that each chocolate bar contains 5 grams of fiber and the various health benefits of including more fiber in one's diet.Which form of labeling will this perform?

What is the best generator of repeat sales?

Unsought products are often sold through:

Hardie Siding Products James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong, weather-resistant materials. Soon consumers began asking their builders or remodelers to use the product. Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By 2000, the HardiePlank was the number one brand of siding in North America. James Hardie is now the third most recognized brand of building material in the world. -Refer to Hardie Siding Products.HardiePlank siding is an example of a product:

Which type of product modification changes a product's versatility,effectiveness,convenience,or safety?

All of the following are functions of packaging EXCEPT:

Product mix width may be defined as:

The Crayola brand is currently placed on a wide variety of products,including crayons (standard and fluorescent colors packaged in a wide variety of box sizes),markers (regular and washable),paints (watercolor and acrylic),scissors,glue,and children's clothing.Using Crayola as an example,describe the concepts of product item,product line,and product mix.

A consumer who consistently and repeatedly purchases the same brand is said to have:

_____ products are purchased with little shopping effort.These products typically are purchased regularly,usually with little planning,and require wide distribution.

Which of the following statements describes an advantage to retailers associated with developing their own brands?

Amy stopped by the grocery store to pick up a gallon of milk.As she was waiting to check out,she noticed that People Magazine had an interesting cover story about Scarlett Johansson.As Amy is a huge fan of Scarlett,she had to buy a copy.In this example,the People Magazine is an example of a(n)_____ product.