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CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

A Pune-based packaged snacks company sells the same product range nationwide but changes only the pack size and price points for rural markets. Which element of the marketing mix is being adjusted most directly when it launches Rs 5 sachets for villages?

The adjustment is mainly to price. Launching Rs 5 sachets fits the product to the low purchasing capacity of rural customers by lowering the per-purchase outlay. Channels and advertising are unchanged, so place and promotion are not the primary elements being altered here.

  1. APlace, because distribution reach is widened
  2. BPromotion, because awareness is created
  3. CProduct, because the product is redesigned
  4. DPrice, because affordability is matched to the target segment's purchasing capacityCorrect

Explanation

Introducing Rs 5 sachets aims at a price point that rural buyers can afford, so the main lever is price. Pack size is a means to reach that price point. Place or promotion would change only if channels or messages were altered, which is not stated.

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