Hello again,
In the last few days I have been mostly doing research for a client who is currently involved in new product development. As their brand (by their own admission) is not as well known as they would like it to be, nor does it attract a very wide audience, I have been investigating the business models for similar companies in order to show us what avenues we could go down. After the initial facts and history of the company and a brief outline of their audience using TGI, I need to find out how they have evolved their brand with new products over time and which of these new enterprises were successes or failures. This threw up an interesting question in the brainstorming meeting last week, how can you define a success? Is it simply how much profit a certain product or service produces or is it more complicated? From the research that I have done in the last few days, I have seen certain unprofitable enterprises that are consistently subsidised by the company’s central funds. This is probably because these enterprises attract a larger audience, retain current customers within the brand, or increase brand awareness (partly what our client is trying to do). So, if a firm is large enough and has the overall funds, as well as the man-power to support a new scheme that is making a loss, should success really be defined by the profit created? Or, are the by-products of such a venture more valuable in the long term and worth the monetary deficiencies?
Let me know if you have any comments!
Rebecca@MCand.co.uk
Until next time
Becks
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