CLEP Marketing

Answer: D - Heinz Co. decides to discontinue manufacturing its salsa-flavored ketchup due to poor sales in most outlets, using a product line contraction strategy. Contraction of a product line occurs when a company discontinues one or more items in a product line. Poor sales or the product’s competition with other items in the line are often reasons for this contraction. Other times, the emergence of competitors’ products in the market makes the item obsolete so that it is a better strategy to discontinue it.