Final answer:
a. Brand loyalty is already established
Newman's Own can save on marketing costs for new products under the same brand name due to already established brand loyalty and the formidable task competitors face in trying to match their brand recognition and marketing.
Step-by-step explanation:
When food company Newman's Own uses the same brand name for a new product, it can spend relatively less on marketing costs for the new product because brand loyalty is already established. This pre-existing brand loyalty is due to a well-respected brand name that has been carefully built up over many years. Additionally, having a firmly established brand name acts as a barrier to entry for competitors because creating a brand name and marketing effort to equal a well-known brand like Newman's Own is an enormous task. Large advertising budgets by established companies can discourage competition because few companies are willing to spend more than the promotional budgets of established brands to launch a new product.