Consumer Behavior: (Answer should be 1-2 pages in length) The National Beverage

Question

Consumer Behavior: (Answer should be 1-2 pages in length)

The National Beverage Corp. makes the popular Shasta and Faygo drinks. The company also produces water products, juices, and specialty drinks such as VooDoo Rain (similar to Mountain Dew). The company has provided low-cost alternatives to store brands and more heavily advertised national brands (such as Coca-Cola and Pepsi-Cola) for a number of years. The Shasta brand is especially popular with cost-conscious parents. Assume that National Beverage is considering a product line expansion to include a wine cooler product. The product will be named Shasta Cooler—“Shasta with a punch!” The rationale behind the move is to capitalize on the popular Shasta name, expand into the rapidly growing wine cooler field, and to increase profits. Assume the company believes that this spin-off brand will also be popular with cost-conscious consumers.

1. Evaluate the possibility of this line expansion from an ethical perspective.

2. Considering what you have learned about groups and the family, make a decision for the company. Be sure to explain your position and describe any modifications that you might feel are necessary.

Explanation / Answer

Answer-1 Ethically this line expansion is completely viable and fruitful for the company. The reason being the company is already into the beverage business and has the faith of the customers to its side. Therefore by keeping the same satisfaction level and using it to enhance the customer experiance is totally justifiable.

Answer-2 The company should go for this venture and the reason is the company has the faith of the customer that are loyal for its products. By expanding the product line company will only make the customer more satisfied.

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