Launching a brand

Why is it that some new brands fail - even from major players such as Coca-Cola - while others thrive? Because brand launches are expensive and risky, brand managers need careful research and a strategic launch plan to ensure acceptance of the new brand in the market.

Launching a brand

Radu Dimitriu and Lynette RyalsCranfield School of Management

The principles of launching a brand or a brand extension are critical to a business. Get it wrong and the consequences can be disastrous.

Launching a new brand is an expensive and risky business. Recent US research suggests that launching a new supermarket product typically costs $30 million to $50 million. But, the risks are high: around 70% of all new brands fail within three years. A failed brand launch not only costs the company money, it can also damage its reputation in the market.

In 1985, Coca-Cola...

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