As smoking becomes less and less attractive in many countries, lighter firm Zippo has faced a 50 percent decline in sales levels. They have begun to offer lanterns, hand warmers, outdoor tools, cooking accessories, fragrances, and watches in hopes of leveraging their "rugged, durable, made in America, iconic" image. Which of the following strategies are Zippo executives using?
A) Forward vertical integration
B) Market penetration
C) Related diversification
D) Market development
E) Backward vertical integration

Question

Quizplus · Accepted Answer

Zippo is using related diversification by expanding its product line to include items that are related to its core brand image but are not lighters, in order to leverage its existing brand reputation and appeal to a broader market.

As Smoking Becomes Less and Less Attractive in Many Countries