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should you launch a fighter brand (5 hazard to avoid for enjoying brand…
should you launch a fighter brand
low price company vs luxury one
option : fighter brand
comat and eliminated low price rivals
philips morris 98
value of ruble down creation Bon street after ruble ok people went back to Malboro
oen a new market for the OG to pursue
usually losses for the companies itself
consummer as to see the difference of quality
5 hazard to avoid for enjoying brand fighter
will it cannibalise our premium offering
Funtime <--kodak
Funtime ate kodak's sales, were selling product lower price but the consumer di not care about the quality
need to the price concious (preserve your premium brand)
don't target the same segment
innovate the premium brand
strenghten the equity
will it lose money ?
financial damage to the company if it fails
(general motors)
Saturn ( midsize cars built in the US)
one of tte strongest brand in 94
once annual operating profit
so expensive to produce 5X than GM ( high number of employees,
cannibalisation with GM
did not have the lw cost structure and operating model to compete with
need to attain a sustainable level ofprofits
will it miss the mark with customers ?
will it fail to bury the competion
Over protection on premium brand
fighter not offensive enough
(Intel)
Celeron (fighter brand)
cheap but poor performance
Celeron A much better
improve just behind intel premium
succeed because better equipement from firt mistake (market test)