Chapter 10 – Strategies for Mature and Declining Markets
End of Chapter Discussion Questions and Answers
1. Suppose you were the marketing manager for General Foods’ Cool Whip frozen
dessert topping. Marketing research indicates that nearly three-quarters of all
households use your product, but the average user only buys it four times a year, and
Cool Whip is used on only 7 percent of all toppable desserts. What marketing strategy
(or strategies) would you recommend and why? What specific marketing actions would
you propose to implement that strategy?
Answer:
Student answers will vary. Answers should include elements such as:
The text states that a share leader in a mature industry might build on a cost or product
differentiation advantage and pursue a marketing strategy aimed at increasing volume by
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Strategies for Mature and Declining Markets
Cool Whip might benefit from a strategy that found new uses for the product. In this case the
Specific marketing actions that students could propose to implement the strategy:
Promotion including advertising, couponing, inventing new recipes for Cool Whip would be
helpful.
2. In recent years, McDonald’s—which had attained decades of outstanding growth by
selling burgers and fries to American families with young children—has aggressively
sought franchisees in foreign countries, including Russia and China. The firm has also
introduced a wide variety of new product lines and line extensions (breakfast items
such as Egg McMuffin, Chicken McNuggets, McChicken sandwiches,
low-carbohydrate salads, etc.). What was the strategic rationale for these moves?
Answer:
Students should be able to identify that the strategic goal here is market expansion. The text
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 10 – Strategies for Mature and Declining Markets
3. The J. B. Kunz Corporation, the leading manufacturer of passbooks and other printed
forms for financial institutions, saw its market gradually decline during the 1980s and
1990s because the switch to electronic banking was making its product superfluous.
Nevertheless, the firm bought up the assets of a number of smaller competitors, greatly
increased its market share within its industry, and managed to earn a very high return
on investment. What kind of strategy was the company pursuing? Why do you think
the firm was able to achieve a high ROI in the face of industry decline?
Answer:
Students should be able to identify that the firm is pursuing a profitable survivor strategy. It
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.