Marketing MCQ
Marketing
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. A few years ago, Frito-Lay thought this was a great new-product concept: Why not develop Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips? But when people think of the brand name "Frito-Lay," thirst-quenching is not a benefit that comes to mind. So the "logic" lost out and Frito-Lay Lemonade failed. This innovation strategy is known as a
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. A few years ago, Frito-Lay thought this was a great new-product concept: Why not develop Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips? But when people think of the brand name "Frito-Lay," thirst-quenching is not a benefit that comes to mind. So the "logic" lost out and Frito-Lay Lemonade failed. This innovation strategy is known as a
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. A few years ago, Frito-Lay thought this was a great new-product concept: Why not develop Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips? But when people think of the brand name "Frito-Lay," thirst-quenching is not a benefit that comes to mind. So the "logic" lost out and Frito-Lay Lemonade failed. This innovation strategy is known as a
a.
brand extension.
b.
radical invention.
c.
product line extension.
d.
disruptive innovation.
e.
product deletion.
Answer: brand extension.
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