Yet their high relevance affords them this tremendous markup. The assumption that the Polo shirt is a higher quality product makes up another aspect of esteem. The knowledge that most people associate Ralph Lauren Polo with high quality suits and formal attire increases Polo s Brand Equity. The way consumers associate Polo with a high price and high quality product demonstrates this concept. A company desires a positive Brand Recognition in hopes of consumers demanding it product over competitors, thus achieving brand loyalty.
Companies have several options when expanding.
Companies can make a new product or push their existing products into new markets. In either case the company must use product development strategies. This type of incident has happened recently with Bugle Boy clothing. Bugle Boy began as a high priced brand such as Tommy Hilfiger. The company expanded into lower markets.