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Old 03-14-2013, 12:41 AM
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Quote:
Originally Posted by JCL View Post
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.
This makes sense. That's like Chevy not wanting the Camaro competing against the Corvette.
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