From:Jacob Chambers, BA 343 Marketing Principles
Re:Class Work for Monday, March 25, 2013
Date:March 22, 2013
1. Briefly state the main ideas of this article.
The main ideas of this article suggest while launching a fighter brand may be beneficial, there are many hazards companies should take into consideration before making a decision. The article has 5 hazards regarding launching a fighter brand. 1. Cannibalize. A fighter brand might steal customers from their own premium brand sales and customers may not be able to distinguish the value differences between the two brands. 2. Failure to Bury the Competition. A fighter brand must be competitive enough to damage the competition while still attracting a low-end market. 3. Financial Losses. Make sure the fighter brand will be profitable, and be able to stay profitable over a long period of time. 4. Missing the Mark with Customers. Be careful not to focus too much on the competition, but instead management should focus on consumer segments that the new brand is targeting. 5. Management Distractions. A fighter brand can take away vital management focus on a company’s premium brand. 2. What information or ideas discussed in this article are also discussed in your textbook or other readings that you have done? Information discussed in the article have many connections to ideas discussed in the text book, such as, developing marketing strategies and marketing plan; consumer behavior, segmentation, targeting, and positioning; product and branding; developing new products; pricing concepts for establishing value; and strategic pricing methods. All these aspects play a role in developing a new brand, even if it is a fighter brand.
3. List the textbook chapters and page numbers.
Chapter 2, page 30. Chapter 4, page 84. Chapter 6, page 148. Chapter 7, page 178. Chapter 8, page 210. Chapter 10, page 268. Chapter 11, page 294....