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Explore the laws of exceptions and expansion in marketing through the stories of General Electric and Volkswagen. GE's strategy of focusing on being number one or two in businesses and utilizing additional brands like NBC is contrasted with the pitfalls of Volkswagen's failed attempt at upmarket expansion. Learn valuable insights on brand strength and market positioning in this insightful analysis.
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There are exceptionsto every law includingthe laws of marketing. The law of exceptions.
What about General Electric? • GE is 112 years old. • GE got rid of all businesses where it wasn’t No. 1 or No. 2. • GE competes with other conglomerates:ABB, GM, Siemens, United Technologies. • GE uses other brands. NBC, for example. • GE failed in tomorrow-type products. Computers, for example.
When you expand a brand,you weaken the brand. The law of expansion.
Volkswagen’s downhill drive. Percentage of U.S.import market
Volkswagen went upmarket. Automotive News, January 14, 2002.