MKTG1001 Lecture Notes - Lecture 9: New Product Development, Brand Equity, Marketing Strategy

• School: University of Sydney
• Department: Marketing
• Course: MKTG1001
• Professor: Jeaney

Document Summary

New flavours for drinks: brand/category extension: same brand, new category. New to the firm, not a new product. Can be risky if it deviates from core essence of brand: multi-brands: new brands within the same product line. Form of market coverage, less (cid:272)o(cid:373)petitors, (cid:373)ore (cid:373)arket share. Risks that (cid:271)ra(cid:374)ds are(cid:374)"t differe(cid:374)t e(cid:374)ough from each other and cannibalising each other: new brand: company deciding to diversify into new product lines with new brands. Need to have strong brand equity for 1 and 2. Examples of line extensions -> multiplications of: variety of tastes and flavours, ingredients, generic form. Functions performed: containment and protection, promotional function. Labelling: regulated by law, carries warnings, legal restrictions, customer service number, dietary information. Companies obtain new products through acquisition or internally. Driven from rapid change in consumer tastes, technology and competition- a company cannot solely rely on current products. Growth, brand leverage, adapt to changing customer needs and defend market share against competitors.