Marketing Quiz
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PRODUCT, BRANDING & INNOVATION
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A company's flagship smartphone, the 'Helio Pro,' sells for $1,000. To compete at a lower price point, the company launches the 'Helio Lite' for $600 under the same brand family. After one year, total unit sales for the 'Helio' brand are flat compared to the previous year. However, internal data shows that 70% of 'Helio Lite' purchases were made by customers who had previously purchased 'Helio Pro' models, and the brand's overall profit margin has decreased significantly.
This outcome is a classic example of which branding decision risk?
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