MKT 300 Lecture Notes - Lecture 4: Granola, 6 Years, Current Value
Document Summary
Brand extension taking a brand into a previously unrelated territory or market. Line extension adding a variation to an existing product. Coke diet coke, coke zero, cherry coke o o o o o o o o. Developing a brand portfolio strategy - what are the pros and cons of managing brands as a portfolio. Ability to adjust marketing mix to reflect he consumer"s perspectives. Can be used to defend against competitive pressure. Brand proliferation increased costs with inventory, logistics, etc. Potential to dilute marketing efforts, limiting the growth of the key brand. Insulation effect if one brand is damaged, it will not carry over to the other products. Reduction of sales form one product due to the introduction of another. Can be a new product (e. g. iphone 6 vs. iphone 5), or new channel outlet. Starbucks currently sells 5,000 coffees per day in the trsm location.
