Tuesday, May 25, 2010

The Approachable Line

Business Week looks at the Starbucks strategy of boosting Seattle's Best. An excerpt:

Starbucks' move is a familiar one in the consumer world. In fashion, there's Gap (GPS, Fortune 500) with its Old Navy and Banana Republic brands, or take Ralph Lauren's (RL, Fortune 500) American Living line for J.C. Penney (JCP, Fortune 500). Williams-Sonoma (WSM) has Pottery Barn and West Elm. Marriott (MAR, Fortune 500) has the Fairfield Inn, and the list goes on. Companies do it because it's a classic, proven way to grow a business.

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