[lapujhanna]

The following appeared in a memo from the marketing director of Bargain Brand Cereals.

"One year ago we introduced our first product, 'Bargain Brand' breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies. Although the companies producing the top brands have since tried to compete with us by lowering their prices, and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. Given our success selling cereal, Bargain Brand should now expand its business and begin marketing other low-priced food products as quickly as possible."




The argument discussed above by the marketing director of Bargain Brand cereals proves her good thinking. She draws conclusion based on the success of her first product and thinks that it may be a good choice to start a new range of different low priced food products. At this time the companies first product is a hit and it drew many customers from the top selling company’s which proves that the product is cheap and best. People have good impression of the company at this time and it may be useful in expanding the business for other products as well

There is a famous saying “First impression is the last impression.” When people are attracted with one brand they want to try it for their other services too. This is the best opportunity to take the chance and introduce other products. It should be the first concern that the quality of the product and its rates gives customers the best available option in the whole market as it was in the first product. Quality should not be compromised even if in initial stage it may be a less profitable outcome. Once when a company win the trust of customers it can thrive well in the future.

Launching of new and different products at this time can give company a good name and fame. It is a difficult for a new company to gain good reputation and give strong competition to already established companies. Success in its first product can be used to expand its business. People started to know the company and if the second product launched is good enough than it can give company a good name and fame. It will work as an advertisement. Business can be expanded greatly if they do good advertisement.

While launching of new products, company should consider that it might face different circumstances than previous one. It can face competition with others who are already in the market and selling the same product in much cheaper rates. Consequently it may become hard to compete with them. So the next product should be chosen carefully. Good taste, quality, along with the prices ought to be better than others. It is hard to win peoples’ trust but once that happened the business will be a success. This is the best time to use the previous success with precautions in mind to lead in the market.