Assignment:
Lanase, a leading producer of aerated drinks, decides to introduce fruit juices and bottled water into the market. The company's budget requires it to keep advertising and marketing costs as low as possible. It therefore decides to introduce the products under the company brand name. Which of the following is a likely consequence of the decision?
1. The company's goodwill will be unaffected since consumers will find it easy to differentiate one product from another.
2. The development costs for future products will be extremely high.
3. Consumers will buy the products since the company name will be easily recognizable to them.
4. If the products do not perform well in the market, the company will not be affected since it has not tied its reputation to the products.