Identify the benefits and dangers of a single company marketing different brands to different social class segments. Give an example

What will be an ideal response?

People tend to avoid stores that have the image of appealing to a social class very different from their own. For this reason, in order to appeal to working class consumers without driving away their middle and upper class consumers, companies will market different brands of their products, or even different stores, to different social class segments. For example, Gap opened its Old Navy stores with cheaper clothing in order to sell to working class consumers without giving its Gap stores a working class reputation and driving away Gap's middle and upper class customers. While Old Navy has increased the parent company's sales by targeting a new social class segment, the downside to this strategy is that Old Navy sales have cannibalized some Gap sales, with Gap customers instead choosing to buy their clothes at the less expensive Old Navy.