2. Read the article and choose the best alternative.
Zumo
The best-selling sports drink, Zumo, is produced by Zumospa, a food and
drinks company based in Valencia, Spain. In the last financial year, Zumo
contributed €30 million to Zumospa's annual sales revenue, accounting for 20% of
the company's total turnover, and €4.5 million in profits. It is, in fact, Zumospa's
cash cow, generating more revenue than any other of its products. At present,
Zumo is sold only in Europe. However, the sports drink market is the most rapidly
growing segment of the world beverage market. Zumospa would like to make Zumo
a global brand, even though the market is very competitive, with major companies
such as Coca-Cola, Pepsi Cola and Heinz fighting for market share.
Some characteristics of Zumospa’s marketing background include:
Launched in the mid 1980s. Positioned as an energy product for fitness-conscious
people, especially sportsmen and women between the ages of 20 and 45.
Distributed mainly through grocery stores, convenience stores and supermarkets.
Also through sports clubs. Also, sales generated through contracts with professional
leagues, such as football, golf and tennis associations.
Press, TV and radio advertising is backed up by endorsement contracts with famous
European footballers and tennis stars.
Zumo is offered in four flavors and its price is in the medium range.
Developing a global brand
Zumospa needs to reposition Zumo for the global market. Initial research suggests
that Zumo is perceived as a Spanish drink, and its close identification with Spain
may not be suitable when developing a global brand. Zumospa would like to launch
a global campaign focusing first on South America, Mexico, the Southern states of
the US and Japan, where they have regional offices. A decision has been taken to
use a standardized advertising theme in these markets, although the copy of the
advertisements and language of the TV and radio commercials will be adapted to
local needs.
1. Zumospa company produces
a) sports drinks
b) make-up and skin care products
c) breakfast cereals
2. Zumospa is located in
a) America
b) Asia
c) Europe
3. What does the expression ‘cash cow’ refer to?
a) Zumospa
b) Zumo
c) Coca-Cola
4. Which company is not mentioned in the article as a main Zumospa’s competitor
in the market?
a) Pepsi Cola
b) Heinz
c) Lotocus
5. Zumo is positioned as a drink for
a) people of the average age
b) teenagers
c) sportsmen and women of the middle age (20-45)
6. While making advertising campaigns Zumospa
a) does not apply to famous spots figures
b) does not apply to endorsement contracts
c) applies to endorsement
7. You can drink Zumo
a) in more than four different flavors
b) in no more than four flavors
c) in fewer than four flavors
8. The main ambition of Zumospa currently is
a) to introduce Zumo as a global brand
b) to standardize advertising theme in the market
c) to establish regional offices in a number of countries
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