please answer the question from the notes below.
Discuss entirely transformational innovation. Discuss fully line extensions, co-branding, and brand extensions.
\fthe line and weakening the brand equity. Many new products are line extensions. This leveraging strategy consists of offering additional items in the same product class or avors, forms, colors, and packagesizes. Coca-Cola Blak (Coffee Coke) is an example. The primary danger is overextending\fLine extensions are attractive options for many companies. They help expand the market opportunity for the product line by offering more variety. The extensions are B Exten ICSoundly conceived and well-executed extensions strengthen the brand 's position in the \fa product class to launch a new product line in another product class. \fsales from the Mach3 razor although Fusion's higher price may discourage purchases. \f\f\fmarketplace. However, relying on line extensions as the primary basis for innovation \ftion as illustrated by Gillette's introduction of its Fusion razor in 2006. It will attractor may not be closely related to the brand from which it is being extended. Examples of watches. Critics of brand extensions indicate that these initiatives often do not succeed \frelated extensions include Ivory shampoo and conditioner, Nike apparel, and Swiss Armyciations; (3) failure of the new brand to deliver on its promise; (4) an unexpected incident and may damage the core brand. There are several potential risks associated with brand \f\f\fsuccessful brand extensions of the 1990s were the various lines of Healthy Choice foods. Two considerations are important. There should be a logical tie between the core brand and Regardless of the possible dangers of brand extension, it continues to be very popular. the extension. It may be a different product type while having some relationship to the core brand. The extension also needs to be carefully evaluated as to any negative impact on the \fLcts. The brand names are used in various promotional efforts. Airline co-branding alliAn interesting example of how the Virgin Group in the United Kingdom is extending bases of the two brands. Joint products may be involved or instead a composite product \f\fThis strategy consists of two well-known brands working together in promoting their prodthe brand into new industries is described in the RELATIONSHIP FEATURE. Sir Richard ances with credit card companies are illustrative. The advantage is leveraging the customer branding is used to link consumer brands. Disney, for example, is co-branding breakfast\f\f\f\f\fbusinesses within the same organization ) combine to create an offering in which brands\f\fductions facilitated. The important challenge is selecting the right brand combination and \f\f\f\f\f\f\f\fed according to (1) newness to the market; and (2) the extent of \f\f\f\f\f\f\f\f\f\f\f\fcategories. The reality is that many new products are extensions of existing product lines \fA company's new-product initiatives may include innovation in one or more of the three \fand incremental improvements of existing products rather than totally new products. These \f\f\fThe new product planning process we discuss in this chapter applies to any of the three ucts. However, as we discuss shortly, potential customers may not be good sounding boards extensions and improvements account for as much as 70 to 80 percent of all innovations. \f\fsued by Google, the Internet search leader. Google is an impressive success story driven\fcategories and is used in planning new services as well as tangible goods. \f\f\finnovations should have some relationship to needs that are not being met by existing prodOpen communications throughout the organization and high levels of employee involve\f\fCreating (and strengthening) an innovation culture can be encouraged by several interre- ment and interest are characteristic of innovative cultures. Recognizing the importance of \f\fDevelop an innovation statement highlighting the company's objectives and senior man-innovation plan. This would involve use of cross-functional teams, resource allocations, 0 Plan and implement a two-day innovation workshop of top executives to develop an \f\fConduct innovation training programs for employees and managers to encourage com\finnovative cultures may be found in corporate mission statements, advertising messages, \f\fmost promising opportunities for new products. This strategy should take into account the \fA major benchmarking study of 161 business units across a broad range of industries in 0 Schedule innovation speakers on a regular basis to expose employees to innovation \f\fmunicated new product innovation strategy is a cornerstone of superior new product per-0 Communicate the priority of innovation via articles, newsletters, and presentations to \f\fThe organization's innovation strategy spells out management's choice of the organization's \f\fthe U.S., Germany Denmark, and Canada indicates that a carefully formulated and com\f\f\f\f\ftanee of considering innovation projects that include search into three domains for organic \fning the areas of strategic focus for the corporation in terms of product scope, mar2. Communicating throughout the organization the role of new products in contributing to \fAdopting these strategy guidelines should assist management in selecting the right innova- \f\f4. Including longer term, transformational projects in the portfolio along with incremental \f\f
