BUFFALO, N.Y. — Companies should use existing brand names and add new, sub-brand names to maximize revenue when introducing new products to market, according to a new study from the University at Buffalo School of Management.
Forthcoming in Management Science, the study notes a proliferation of new products in the consumer packaged-goods market each year. For example, U.S. manufacturers introduced more than 150,000 new products in 2010 alone. Of these, more than 90 percent were extensions of existing brand-name products.