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Question
Scenario 15-4General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal.
On the back of its Cheerios boxes, General Mills has printed a form to fill out for a cookbook offer. The booklet is available to consumers for a nominal charge of $3.00, plus a $1.00 shipping and handling charge. This is an example of a(n):
a. self-liquidating premium.
b. on-package sample.
c. advertising specialty.
d. slotting fee.
Answer
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