6. Managerial actions Lull management into complacency Compromises for cost- cutting reasons Do not live up with customers’ expectation Raise price without corresponding increase in benefit Cut prices to increase sales = use cheaper material Neglect to invest in cash cow phase Less attention to strong brand Reach out to new segment-alienate core customers
9. Repercussion of Competition Product Line Extension Price Change These Quick Fix is not effective over long-run!! How to deconstruct the brand ??
10. Differential Effects - Perceiving Consumer Superior Quality 1 Price Advantage 2 ‘‘Brands must offer something different; they can’t just be another flavour of vanilla’’