Real-Life Decision Making -- Solution
You pair up with the dairy and make something new.
You decide you can't pass up this opportunity to give your competitor a run for its profits. You see a way to give consumers a better option in the chilled, fresh, ready-made juice category -- something not only as good, but also cheaper. Marketing on the strength of your brand name, with a positive price difference to boot, you see an easy recipe for success on the horizon.
You license your new product with a large dairy and arrange for its factory to make and deliver the juice with your brand name to your client stores. With the dairy's manufacturing and distributing strength combined with your brand recognition strength, you soon find your product selling well on store shelves.
Whatever you've lost in sharing profits with the dairy, you easily make up in increased sales that year, and then some. Before long, your brand has recovered from the initial slump brought on by its competitor, and is once again a major market leader.
"When we decide on new products, what we'll do is look at how the category is doing and move from there," says brand manager Rob Peter. "If it's doing well, we'll definitely want to participate, and try to find the best logistic manner to get that product to the consumer."