include: Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and rivalry among competing firms. I believe there is a low threat of new entrants for Starbucks. Starbucks deals with threat of new entrants by use of product differentiation. In a commodity market, Starbucks differentiated itself by building a strong brand name and a unique culture. Also their access to distribution channels helps them compete with the threat of new entrants. They
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anything can referred as a Service. Eg: banking industry, tourism industry, Information Technology services etc. Levels of a Product ▪ Core benefit – What the consumer is really buying. ▪ Actual product – Includes the brand name, features, design, packaging, quality level. ▪ Augmented product – Additional services and benefits such as delivery and credit, instructions, installation, warranty, service. Core benefit:- Each level adds more customer value.
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consumers expectations are 13% higher than supposed by manufacturer. It means they are very knowledgeable about the differences in price and quality between the various brands (considered). Brand proliferation increased number of other brands and brand extensions . Brand proliferation is when a firm puts out new brand names under the same product lines. For example, Huggies is a firm owned by Kimberley-Clark. Huggies is best known for producing disposable diapers, and has different product lines
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West Spain. It holds the ownership of some world famous brands such as Massimo Dutti, Pull & Bear, Oysho, Uterqüe, Stradivarius and Bershka. The very first Zara shop was open in 1975 and their specialty is frequent innovation of new product lines. Also they decided not to outsource their production to low-cost countries which is a trend in the same industry. At the same time they followed up a special policy of investing on opening a new store instead of investing on advertising which ultimately
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deeply that is, goes to the very heart of a product and contributes to usefulness as well as to its looks. 4) Brand equity: the differential effect that knowing the brand name has on customer response to the product or its marketing. -Build a strong and profitable relationship. - attract consumer feelings about and connection with a brand. 5)* Line extension: Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. I.e. kosher salt, Morton sea
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Running head: WORKSHEET #3 Business Discussing the Concepts CH7 2) Name and describe the four major sets of variables that might be used in segmenting consumer markets. Which segmenting variable(s) do you think Starbucks is using? The four variables that segment and make it possible to identify consumer markets are defined below: A. Geographic segmentation: Consumer markets are identified based on their geographical unit of identification such as: nations, regions, states, counties
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accounts • If NOT in the presence of drugstore repositioning, Flare could lose to competitors • Flare only receives approximately 4.4% of total sales from drugstores as of 2008 • Competitors could enter and take lead Option 2: Introduce new perfume brand – Savvy Advantages Disadvantages • Power of Loveliest as an umbrella
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Generic drugs are copies of brand-name drugs that have exactly the same dosage, intended use, effects, sideeffects, and route of administration, risks, safety, and strength as the original drug. In other words, their pharmacological effects are exactly the same as those of their brand-name counterparts. Many people become concerned because generic drugs are often substantially cheaper than the brand-name versions. They wonder if the quality and effectiveness have been compromised to make
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For McDonald’s, the Healthy Choice brand will provide a good-for-you image that is lacking in many of the restaurant’s food items. McDonald’s USA president Alan Feldman has noted that he is interested in borrowing brand equity from other brands as well. A source close to the company said, “I think you’re going to see a lot more of this cobranding at McDonald’s.” The McDeli test is part of McDonald’s attempt to upgrade its overall food quality and to develop new products that will attract consumer
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NEW PRODUCTS AND BRAND EXTENSIONS To facilitate the discussion, it is useful to establish some terminology. When a firm introduces a new product, it has three main choices as to how to brand it: 1. It can develop a new brand, individually chosen for the new product. 2. It can apply, in some way, one of its existing brands. 3. It can use a combination of a new brand with an existing brand. A brand extension is when a firm uses an established brand name to introduce a new product. When a new
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