According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies.
A) liquidity trap
B) cognitive dissonance
C) branding fallout
D) cannibalization
E) line-extension trap

Question

Quizplus · Accepted Answer

The scenario described in the question refers to the line-extension trap. This happens when a company dilutes the strength of its brand by using it to introduce too many variants or product lines, causing confusion among consumers and reducing the brand's overall appeal. In the case of Cadbury, the brand's association with chocolates and candies should have been preserved, and the introduction of unrelated food products caused confusion among consumers.

According to Ries and Trout, Cadbury Suffered from ________ When