1. Which action, or combination of actions, should Mr Belq recommend in his marketing plan? Why should he recommend this course of action(s)? Late in April 1993 Andre Belq had to prepare a budget for Spurt, a fruit-flavored concentrate that could be sprayed into a glass of water to produce a fruit-flavored beverage. The budget, which had to include forecast costs and revenues for Spurt for 12 months beginning 1 June 1993, was due on 15 May. The budget could include: (1) costs for further consumer research,

(2) expenditures for a test market based on a tentative plan that had been submitted to Mr Belq by the firm’s advertising agency, or (3) forecast revenues and costs for a national introduction in the United States.

The company Supreme Foods of France (SFF) is a vertically integrated multinational firm that produces and markets a wide variety of convenience and commercial foods throughout western Europe. In addition, the company sells a variety of specialty products in the United States. These products are usually sold in the gourmet section of supermarkets.