Chapter 7 - Article #3 Flashcards
What is the primary purpose of brand stretching for alcohol companies?
a) To diversify their business into unrelated industries.
b) To bypass advertising restrictions and maintain brand visibility.
c) To replace traditional forms of alcohol marketing.
d) To reduce production costs.
b) To bypass advertising restrictions and maintain brand visibility.
Which of the following is an example of a line extension in the alcohol industry?
a) Guinness-branded chocolates.
b) Jack Daniels barbecue sauces.
c) Carling Zest citrus-flavored beer.
d) Kingfisher Airlines.
c) Carling Zest citrus-flavored beer.
What was a key factor in the failure of Coors’ attempt to market spring water?
a) The water was too expensive compared to competitors.
b) Consumers did not associate the brand with drinking water.
c) Coors did not invest in sufficient marketing.
d) The product lacked regulatory approval.
b) Consumers did not associate the brand with drinking water.
How do alcohol-branded merchandise (ABM) items like T-shirts and mugs impact youth behavior?
a) They increase brand visibility without influencing drinking behavior.
b) They are highly regulated and do not affect youth alcohol consumption.
c) They increase the likelihood of youth initiating drinking behaviors.
d) They have no measurable effect on consumer behavior.
c) They increase the likelihood of youth initiating drinking behaviors.
Which statement best describes the marketing strategy behind Baileys ice cream?
a) It uses sensuous branding to align with Baileys’ core product identity.
b) It targets a completely different audience than Baileys liqueur.
c) It avoids any connection with the Baileys parent brand.
d) It focuses on low-cost, high-volume distribution.
a) It uses sensuous branding to align with Baileys’ core product identity.
What is an example of how alcohol companies in India have adapted to strict advertising bans?
a) Partnering with international retailers for alcohol exports.
b) Launching non-alcoholic products under the same brand name, such as Kingfisher Airlines.
c) Reducing alcohol prices to attract consumers.
d) Increasing direct advertising through social media.
b) Launching non-alcoholic products under the same brand name, such as Kingfisher Airlines.
According to the Portman Group, what was the ruling on Burts Guinness-flavored crisps?
a) The product was banned for appealing to children.
b) The product did not breach alcohol marketing rules.
c) The product was allowed but only for adult consumers.
d) The product was discontinued due to public complaints.
b) The product did not breach alcohol marketing rules.
What is a key risk associated with brand stretching?
a) It can erode the core brand if the extension fails.
b) It significantly increases production costs.
c) It prevents companies from expanding into new markets.
d) It limits the target audience to niche markets.
a) It can erode the core brand if the extension fails.
Which factor is most important for the success of a brand extension?
a) Offering the product at the lowest price in the market.
b) Maintaining a strong perceived fit with the parent brand.
c) Avoiding associations with the parent brand.
d) Expanding into unrelated industries.
b) Maintaining a strong perceived fit with the parent brand.
What concern is raised about alcohol-branded products targeted at children?
a) They do not comply with international trade laws.
b) They may create early brand loyalty and familiarity with alcohol.
c) They reduce alcohol sales in adult markets.
d) They violate environmental sustainability regulations.
b) They may create early brand loyalty and familiarity with alcohol.
