Discuss how a business unit may avoid problems of cannibalism among competing brands.
What will be an ideal response?
A major responsibility when offering multiple brands is to avoid competitive threats from one brand to another, i.e., cannibalism. To avoid the problems of cannibalism, several steps must be stressed. The market should be carefully segmented, and the brand should be positioned through design and promotion to serve the chosen segment. The apparent difference in cannibalism rates shows that cost structure, degree of market maturity, and the competitive appeal of alternative offerings will affect cannibalism of sales. Finally, the degree of cannibalism must be weighed against the vulnerability of an existing brand to a competitor’s entry through a possible open spot in the market
You might also like to view...
Awards are often used to encourage
A) intermediate performance. B) short-term performance. C) long-term performance. D) both short-term and long-term performance.
During interviews, there is typically an exchange of information between a job candidate and an. interviewer. What should you, as a job candidate, be prepared to discuss during this part of the interview?
According to your text, companies that employ a pull or push-pull strategy typically establish logistics operations based on
A. speculation, forecasting, and chance. B. routine, standardization, and transportation efficiency. C. inventory levels, customer orders, and flexibility. D. sales forecasts, inventory stockpiles, and volume. E. service quality, innovation, and flexibility.
While playing soccer, Kyle suddenly fell and broke his arm. Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for the Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force?
A. Economic B. Competitive C. Political D. Legal and regulatory E. Technological