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The Middle Class's Urge to Splurge


Q: What's an example of a more recent entrant?

A: Panera Bread (PNRA ), with their premium sandwiches, has really just taken off in the last few years.

Q: How are these products developed?

A: They take a tremendous amount of innovation. They have to represent a real technical improvement over the mainstream product in terms of what the product does and what the customer experiences. For it to work, the customer has to make a real emotional connection with the product. Often what's required is a fresh perspective and a new way of bringing the product to market.

Q: For example?

A: American Girl dolls ar


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