Rather than try to compete with Coke and Pepsi in the US soft drink market,Cadbury-Schweppes offers a wide variety of flavours such as cream soda,root beer and ginger ale-almost anything but cola-to appeal to small groups of customers with unique tastes.This is an example of a challenger deploying an encirclement strategy.

Question

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An encirclement strategy involves targeting several smaller untapped or underdeveloped segments in the market simultaneously. The idea is to surround the leader's brand with a variety of offerings aimed at several peripheral segments.

Rather Than Try to Compete with Coke and Pepsi in the US