A new brand may often be the best way to market genuinely new products. For example, it is hard to say whether Diet Coke was the best way to introduce low-calorie soft drinks. Even if the new brand succeeds, however, its niche may develop into a strong market segment. Then established brands may be forced to introduce similar extensions to fight competition. Sanka pioneered the decaffeinated coffee category, but time and the popularity of reduced caffeine have forced all major brands to make decaffeinated versions of their own.
This system, which produces duplication, also encourages brands to innovate or be left behind. A company therefore must regularly pare the product and brand lineup to give others a chance. That is the spirit in which I interpret Quelch and Kenny’s suggestions for steering a course between variety and redundancy.
A new brand may often be the best way to market genuinely new products. For example, it is hard to say whether Diet Coke was the best way to introduce low-calorie soft drinks. Even if the new brand succeeds, however, its niche may develop into a strong market segment. Then established brands may be forced to introduce similar extensions to fight competition. Sanka pioneered the decaffeinated coffee category, but time and the popularity of reduced caffeine have forced all major brands to make decaffeinated versions of their own.This system, which produces duplication, also encourages brands to innovate or be left behind. A company therefore must regularly pare the product and brand lineup to give others a chance. That is the spirit in which I interpret Quelch and Kenny’s suggestions for steering a course between variety and redundancy.
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