Using an existing brand name to introduce a product that is new to the company into a totally new,unfamiliar market seems like a good idea.Several years ago,Bic-the marketer of disposable pens,disposable lighters,and disposable shavers,decided to introduce disposable underwear under the Bic brand name-and it failed quickly.This innovation strategy is known as a
A)radical invention.
B)brand extension.
C)product line extension.
D)disruptive innovation.
E)product deletion.

Question

Quizplus · Accepted Answer

This innovation strategy is known as brand extension, which is using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market. Bic introduced a new product, disposable underwear, under the existing Bic brand name. However, the product failed quickly as it did not match the brand image and did not appeal to the target market.

Using an Existing Brand Name to Introduce a Product That