Dairy Doo or Dairy Don’t: A New Branding Decision
This case concerns a local entrepreneur’s decision to either expand his product line by reselling another company’s product, Nature Safe, or create a new product, Healthy Garden from a mix of Nature Safe and Dairy Doo. Brad Morgan, owner and operator of a local composting company, Morgan Composting, had a decision to make. Over the last few years, Morgan Composting had been expanding into other gardening products in addition to their mainstay, composting. The new products included fertilizers for the farmer and home gardener. Morgan Composting was working out a business deal with the manufacturer of Nature Safe, a plant fertilizer. The decision was this: Should Morgan Composting add their signature soil amendment, Dairy Doo, to Nature Safe, package the product into 40-pound bags, and market the product under the new brand, Healthy Gardens, or should Morgan maintain the Nature Safe product as is for resale?
- Assess how an entrepreneur would react to a new brand implementation versus reselling an existing brand.
- Identify the key issues facing the decision maker when selecting between new branding and resale alternatives.
- Analyze the situation for a firm making the decision to develop a new brand vs. reselling an existing brand.
- Propose a plan of action for the decision-maker.