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{"id":3204,"date":"2023-02-19T16:11:56","date_gmt":"2023-02-19T16:11:56","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-15-1-product\/"},"modified":"2025-06-25T15:25:47","modified_gmt":"2025-06-25T15:25:47","slug":"apply-it-15-1-product","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-15-1-product\/","title":{"raw":"Apply It 15.1: Product","rendered":"Apply It 15.1: Product"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize common product categories&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize common product categories<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what a branding strategy is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what a branding strategy is<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the product life cycle&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the product life cycle<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the stages of the new-product development process&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the stages of the new-product development process<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand different marketing considerations to think about during the product life cycle&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15235,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;10&quot;:2,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand different marketing considerations to think about during the product life cycle<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Branding and Strategic Value<\/h2>\r\n<p>This video examines Costco's development of their store brand, Kirkland Signature, which accounts for about one-third of the company's sales. You'll see this video case study again later in the module.<\/p>\r\n<section class=\"textbox watchIt\" aria-label=\"Watch It\"><script src=\"https:\/\/www.youtube.com\/iframe_api \" type=\"text\/javascript\"><\/script>\r\n<p class=\"cc-media-iframe-container\"><iframe id=\"tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD\" class=\"cc-media-iframe\" src=\"https:\/\/www.youtube.com\/embed\/042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD?enablejsapi=1 \" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\r\n<p class=\"cc-media-iframe-container\"><script src=\"\/\/plugin.3playmedia.com\/ajax.js?cc=1&amp;cc_minimizable=1&amp;cc_minimize_on_load=0&amp;cc_multi_text_track=0&amp;cc_overlay=1&amp;cc_searchable=0&amp;embed=ajax&amp;mf=13387227&amp;p3sdk_version=1.11.7&amp;p=20361&amp;player_type=youtube&amp;plugin_skin=dark&amp;target=3p-plugin-target-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD&amp;vembed=0&amp;video_id=042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD&amp;video_target=tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD\" type=\"text\/javascript\"><\/script><\/p>\r\n<p>You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/Why+Costco+Went+All+in+on+Kirkland+%E2%80%94+and+How+It+Paid+Off+%7C+WSJ+Case+Study_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cWhy Costco Went All in on Kirkland \u2014 and How It Paid Off\u201d here (opens in new window).<\/a><\/p>\r\n<\/section>\r\n<h3>How did Costco's decision to consolidate multiple private labels into a single \"Kirkland Signature\" brand challenge conventional retail wisdom at the time?<\/h3>\r\n<p>[reveal-answer q=\"774012\"]Click to Show Sample Answer[\/reveal-answer]<br \/>\r\n[hidden-answer a=\"774012\"]Costco's decision to consolidate multiple private labels (Chelsea toilet paper, Cloud detergent, Traditions, Pinnacle) into a single \"Kirkland Signature\" brand directly challenged the established retail practice of using separate private labels for different product categories. The industry feared that negative experiences with one product would damage consumer trust across all categories carrying the same brand. By consolidating under one name, Costco took a significant risk that one poor product could damage the entire Kirkland brand across hundreds of diverse items.<\/p>\r\n<p class=\"whitespace-normal\">However, Costco recognized that multiple labels created internal confusion. When a warehouse manager couldn't identify that Pinnacle legal pads were a Costco private label, it was sign to CEO Jim Sinegal who realized that if the employees didn't understand store brands, the customers wouldn't either. This insight revealed that the benefits of brand clarity and consistency might outweigh the conventional wisdom about risk separation.[\/hidden-answer]<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize common product categories&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize common product categories<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what a branding strategy is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what a branding strategy is<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the product life cycle&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the product life cycle<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the stages of the new-product development process&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the stages of the new-product development process<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand different marketing considerations to think about during the product life cycle&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15235,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;10&quot;:2,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand different marketing considerations to think about during the product life cycle<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Branding and Strategic Value<\/h2>\n<p>This video examines Costco&#8217;s development of their store brand, Kirkland Signature, which accounts for about one-third of the company&#8217;s sales. You&#8217;ll see this video case study again later in the module.<\/p>\n<section class=\"textbox watchIt\" aria-label=\"Watch It\"><script src=\"https:\/\/www.youtube.com\/iframe_api\" type=\"text\/javascript\"><\/script><\/p>\n<p class=\"cc-media-iframe-container\"><iframe id=\"tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD\" class=\"cc-media-iframe\" src=\"https:\/\/www.youtube.com\/embed\/042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD?enablejsapi=1\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p class=\"cc-media-iframe-container\"><script src=\"\/\/plugin.3playmedia.com\/ajax.js?cc=1&amp;cc_minimizable=1&amp;cc_minimize_on_load=0&amp;cc_multi_text_track=0&amp;cc_overlay=1&amp;cc_searchable=0&amp;embed=ajax&amp;mf=13387227&amp;p3sdk_version=1.11.7&amp;p=20361&amp;player_type=youtube&amp;plugin_skin=dark&amp;target=3p-plugin-target-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD&amp;vembed=0&amp;video_id=042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD&amp;video_target=tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD\" type=\"text\/javascript\"><\/script><\/p>\n<p>You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/Why+Costco+Went+All+in+on+Kirkland+%E2%80%94+and+How+It+Paid+Off+%7C+WSJ+Case+Study_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cWhy Costco Went All in on Kirkland \u2014 and How It Paid Off\u201d here (opens in new window).<\/a><\/p>\n<\/section>\n<h3>How did Costco&#8217;s decision to consolidate multiple private labels into a single &#8220;Kirkland Signature&#8221; brand challenge conventional retail wisdom at the time?<\/h3>\n<p><div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q774012\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q774012\" class=\"hidden-answer\" style=\"display: none\">Costco&#8217;s decision to consolidate multiple private labels (Chelsea toilet paper, Cloud detergent, Traditions, Pinnacle) into a single &#8220;Kirkland Signature&#8221; brand directly challenged the established retail practice of using separate private labels for different product categories. The industry feared that negative experiences with one product would damage consumer trust across all categories carrying the same brand. By consolidating under one name, Costco took a significant risk that one poor product could damage the entire Kirkland brand across hundreds of diverse items.<\/p>\n<p class=\"whitespace-normal\">However, Costco recognized that multiple labels created internal confusion. When a warehouse manager couldn&#8217;t identify that Pinnacle legal pads were a Costco private label, it was sign to CEO Jim Sinegal who realized that if the employees didn&#8217;t understand store brands, the customers wouldn&#8217;t either. This insight revealed that the benefits of brand clarity and consistency might outweigh the conventional wisdom about risk separation.<\/div>\n<\/div>\n","protected":false},"author":21,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"Why Costco Went All in on Kirkland u2014 and How It Paid Off\",\"author\":\"WSJ\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/042pDj9FJ7Y\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":3193,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"Why Costco Went All in on Kirkland u2014 and How It Paid Off","author":"WSJ","organization":"","url":"https:\/\/youtu.be\/042pDj9FJ7Y","project":"","license":"arr","license_terms":"Standard YouTube License"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"<script type='text\/javascript' src='https:\/\/www.youtube.com\/iframe_api'><\/script><script type='text\/javascript' src='\/\/plugin.3playmedia.com\/ajax.js?cc=1&cc_minimizable=1&cc_minimize_on_load=0&cc_multi_text_track=0&cc_overlay=1&cc_searchable=0&embed=ajax&mf=13387227&p3sdk_version=1.11.7&p=20361&player_type=youtube&plugin_skin=dark&target=&vembed=0&video_id=042pDj9FJ7Y&video_target=tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD'><\/script>\n","media_targets":["tpm-plugin-ccgfddae-042pDj9FJ7Y?si=9fWSAP6KtDJbeuiD"]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3204"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":10,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3204\/revisions"}],"predecessor-version":[{"id":9817,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3204\/revisions\/9817"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/3193"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3204\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=3204"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=3204"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=3204"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=3204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}