Reference no: EM132750642

Kashmir Leaf Tea, a Jammu and Kashmir based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Kashmir Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Kashmir Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The seven-year-old company has only 37 employees, and its products are available in 30% of the Jammu market. Kashmir Leaf Tea recently received multi-million-dollar investments which will enable the business to expand its national presence.

Following are some of its future plans: -

A) Kashmir Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.

B) Its marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.

Problem 1) Kashmir Leaf Tea can achieve growth by aggressively selling its beverages in current markets where loyal customers will help boost word-of-mouth. Will it be the right choice for the company? Why or why not?

Problem 2) Should market penetration for Kashmir Leaf Tea be implemented at the functional level of the company? Yes or no.? Please provide reasons.