Case: Bayer ibuprofen
# 1 what is Bayer aspirin's current product position?
Bayer aspirin current product position is nonprescription analgesic pills.
According to the text, in competition in the analgesics market, Bayer aspirin dominated the aspirin market for many years. In recent year, acetaminophen and ibuprofen-based pain relievers have taken over much of the market. By 1995, Bayer had less than 5% of the analgesics market.
# 2 what are the benefits and risks..........this?
Since Bayer has good reputation, they have the potential for high levels of brand equity. Because brand equity is based on the product position of the brand, consumers who prefer Bayer's brand may assume that, new Ibuprofen of Bayer will have the same favorable features as their existing products. For example I use the Tylenol most of time. eg, Tylenol for headache, toothache, flu, sinus etc I feel Tylenol has strength to pain reliever than other pain killer.
If Tylenol introduce new product eg, Tylenol for especially back pain or for other any symptoms, I will try them.
Failure of new product can hurt all the products with the same brand name. Consumer generalizes bad outcomes as well as good ones. If consumers feel new Bayer ibuprofen doesn't have strength than other brand they won't trust Bayer's other existing product any more.
Another risk is, there are lots of competitors in ibuprofen market eg, Advil, Motrin which are popular and are attempting to mentioning their brand through numerous advertising strategy. Bayer may have to face difficulties in competing with them.
Should Bayer do this?
Yes they should do this because the Bayer has its own reputation & strong positive image in the aspirin market. Their new product ibuprofen- based analgesic fits with the original product Bayer aspirin eg; the new ibuprofen...