The Milkybar is a candy bar produced by the Nestle Corporation since the 1930s. It is made primarily of White Chocolate and is available in numerous countries around the world.

When the Milkybar was introduced it was one of the only of its kind in a brand new barely growing marketplace which means it commanded high market share.

In the 70s, a hit movie was released that cause tremendous interest in white chocolate candy bars. Being one of the only brands in the marketplace, Milkybar scored almost all of the initial business.

The hot product caused dozens of other brands to enter the market; the new entrants were very aggressive and captured large amounts of market share from the Nestle product. Eventually, two brands each had 30% market share, Milkybar had 15% market share and 10 other brands split the remaining 25%.

After a couple of years, the excitement surrounding the white chocolate bar dropped off significantly and the marketplace shrunk to the size it was before the movie was released.

Of the 13 brands that existed at the height of the White Chocolate bar craze only 3 remained with Milkybar having clawed back to 40% the highest of the three brands.

Q1)At the peek of the post movie-excited marketplace, Milkybar had fallen to 15% market share. This brand would now be considered a ______________ in the BCG grid.

Group of answer choices

Cash Cow

Star

Question Mark

Dog

Q2)

Which of the following would be a viable strategy for Nestle if Milkybar became a question mark?

Group of answer choices

Invest in a new product placement to increase market growth rate

Wait for the market to slow down and sell off the brand which is now a dog.

Increase your price to maximize revenue while the market is hot.

Utilize the size of Nestle and purchase a competing brand which has higher market share.

Q3)

As the effects from the popular movie subsided, the market rapidly shrunk back to the initial market size. Since Milkybar only has 15% Market Share at this time, what would you consider to be its place on the BCG grid?

Group of answer choices

Cash Cow

Question Mark

Star

Dog

Q4)

Which of the following would NOT be a viable strategy for Nestle if Milkybar became a dog?

Group of answer choices

Target other brands and purchase them and their market share

Invest in marketing to try to maximize market share in the down market place.

Sell off the brand to a competitor in the marketplace

Invest heavily to make the market grow