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johncm
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Of course, Starbucks is a highly perishable product that some believe is almost a service. It's not something you can take home easily without degradation. If Starbucks developed a mechanism to deliver their highly perishable product to your door - that would be line extension innovation "developing a new sub-category to hold your users" - admittedly for an experiential marketing product. The next conceivable step would be for Starbucks to develop an in house delivery system - Et voila vous avez un gadget! but really a line extension innovation appropriate for their stage in the Category Adoption Life Cycle?
Is it not the inability of the product company to provide a solution that drives the rise in services in the main street phase of a product life cycle. The extreme form of this ultimately makes the end user realize it might just be simpler to buy the whole thing as a service in the first place next time around?