Rhino Records

What about the company with only a few products where there is no confusion about where profitability lies This is often the case when the product is based on intellectual property (IP) that provides a monopoly of sorts, like Rhino Records profiled in Chapter 2. A Wall Street Journal article described the implications of this product category. The products based on IP are fundamentally different. Almost all the cost is in development, and almost 100 percent of every sales dollar is pure profit. 

There are as many new-product processes as there are companies that produce new products. Some companies depend on a constant flow of new products. An example is Rhino Records, which "rereleases" past hit music. This process produces about 15 releases a month. These add to an already significant catalog of prior releases. Au Bon Pain is a sandwich shop with locations in major metropolitan areas. Its customers may grab Ixmches at Au Bon Pain several times a month, so the menu can t be static. A flow of new menu items adds variety to customers diets. 

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