Quote:
Originally Posted by JCL
There are two schools of thought on premier brands utilizing second tier brands to build volume and market share.
Theory A states that the top brand pulls up the second tier brand by its bootstraps, pushing its technology and processes down to the lower brand. The lower brand rises, and is a price competitive option, essentially the top brand product at a discount price.
Theory B states that the top brand keeps its second brand one step behind, permanently, so as not to undermine its top brand position.
Choose A or B.
I go with B. Think how good that tire could be if Michelin was prepared to put its own premium label on it.
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This makes sense. That's like Chevy not wanting the Camaro competing against the Corvette.