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Brand extension success factors
State the factors of brand extension
Brand extension case study
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Brand extension is a useful way to introduce promising products that will revive the brand name in hopes of retaining its loyal customers. Take a company of the magnitude as Molson Coors Brewing Company, established in 1873, whereby producing its famously known beer (Coors, 2017). There were several flavor offerings for the bottled sparkling water such as original, lemon-lime, and cherry (Time, 2009). One highly visible quandary with this promotion was that the new product carried the brand name of Coors, which remained a popular brand name that purely associated its product line with beer. Second, it carried the Coors logo on the front of each bottle, identical to the can or bottled brewed beer, suggesting too close a tie to the original brand product. Another visible problem was its water (i.e., H2O) product that could not resonant with brand loyalties, which were their target audience. In the end, sales plummet and affected market shares. According to Aaker (1990), two-thirds of the food product found on store shelves, are brand extension, which suggest the competitiveness of the business. It becomes imperative that marketers stay abreast of the shifts: who purchase the products; focus on the ideal target or segments; involve band loyalties on planning, …show more content…
The target segments needed expansion to include healthier and natural ties such as gym, yoga, sports goers, hospitals, health food stores or markets, existing in the early 1990’s, which had a better chance of appealing on a grander stand. Uggla (2015) critically scrutinize the views (i.e., pros, cons) of brand positioning and it relevance on brand product extensions. One view where Uggla examines denotes that the strength of brand positioning towards another product other than brand, severances its connectivity to its parent brand and weaken the product
Quality of products can be quoted as one prime quality that can be observed in both the companies. Manufacturing products that are environmental friendly is another common and a beautiful aspect that is common among the two companies. Molson Coors, being an old company is driven mostly by its values whereas Anheuser Busch is moving forward with the motto of “dreaming big” [1]. Both the organizations treat the employees in a good manner making them feel like they are a part of the organization and providing them with the necessary amenities required. Passion and Integrity are a few ground values on which both the companies rely on. Values such as Creativity of Molson Coors sometimes result in a product that might not gain popularity among the customers which would result in the loss of time, thinking and money invested in getting the product out. On the other hand, Anheuser Busch is growing popularity day by day by setting up high goals and working hard to make its presence
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
Same like what Guinness did. Prior to The Guinness Book Project, Guinness is a stout beer company which not everyone can recognize. But ever since it established the famous world record book, Guinness Book, many people were starting to know the origin of the brand itself and of course it makes the Guinness stout beer became pervasively well-known. Owing to this, brand extension prompts the parent brand to gain more reputation and enhance its brand image. In spite of, many people assume that it is a risk because the consequence will be flipped, if a daughter product doesn’t perform well. For example, Dr.Pepper which famous for the soft drink products, came up with the marinate sauce products. This extension is quite a bit disaster in as much as the consumer confused with what exactly is its positioning? Even there are some cases that couldn’t achieve it, there are lots of them that understand how to extend into the right way without ruining but improving the brand image
Adolph Coors is one of the most successful and long-standing brewing companies in the industry. Their ability to adapt to the changing dynamics and circumstances of their consumers has supported their achievements since their opening in 1873. Maintaining success in any industry for over a century requires constant innovation and a dedication to improvement and development. While Coors’ overall history depicts their evident care and ability to give consumers what they want, sometimes before they know they want it, there was a period in which their lag in progression could have more greatly affected their business. From 1975-1985, the fourth generation of the Coors family redeemed the company from their period of reactive business decisions
Alternatively, brand extension can also have severe impacts on a business if it turns out to be a fiasco. For instance, if Tesco was not successful with its brand extension in even one area, this piece of information could make headlines and thus attract the attention of all consumers and other competitors. If the new product or service field fails, there could be a negative impact on the core Tesco brand altogether. This will destroy the company’s image and as a result, people may be reluctant to do their shopping
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Tanner and Raymond (2014) describe branding activity as “strategies that are designed to create an image and position in the consumers’ minds” (c.6). When branding messages coincide with its offerings’ characteristics, it establishes consumer trust, and brand strength. For example, when first introducing Dove brand in 1957, by labeling its product as a “beauty cleansing bar . . . [with] ¼ moisturizing cream, that rinses cleaner than soap” (Unilever, 2016), we can see that marketers associated the brand to moisturizing and beauty, and disassociated the brand from common soap. Over the years, this consistent message coinciding with product performance has strengthened the Dove brand. Strong brand equity is derived from consistent, strategic branding that establishes perceived quality and emotional attachment (Entrepreneur, 2016); therefore, consumers are more likely to pay higher prices, as well as purchase new offerings connected to the
In the past decade companies are starting to see their brand assets, and with this branding has taken on a greater significance. So today brands are more than just marketing slogans and logos. All businesses are building their brands through certain actions and in their actual presence they find a 'position' in the mind of consumer and prospects. This is based on experience and exposure of the brand in the competitive marketplace. There are certain advantages to take into account in a Brand Strategy;
Lack of brand awareness. Our company has a strong image in other countries. But as we introduce our product into our new market where we may not have competitors with similar products, we may have competition with a variety of related products. We will address this issue with heavy and aggressive promotion emphasizing in our products’ nutrition facts.
The practice of brand management is a key component of marketing and performs an integral function by motivating the wants and needs of consumers. It is known that marketing can shape consumer needs and wants, however, consumers today appear to be more knowledgeable about the information regarding products. Consumers lead busy lives and have therefore gone to the internet as one of the many channels to learn about products in order to make informed decisions. This paper will discuss the argument that marketing should reflect the needs and wants of consumers rather than shaping these attributes. Due to the speed and ease of obtaining information, consumers do not take at face value strong marketing efforts that appear to be overly aggressive and push a brand rather than just being informative. Brand managers have to be aware of these changing dynamics and carefully craft brand management practices to meet the demands of consumers.
...nal supermarket retailers will reinvent themselves over a period of time, in order to attract and maintain a loyal customer base. New concepts, neighborhood marketing, and innovation will be the key to success over the next decade.” (Imlay, 2006) What is propose is that a smart mix of products, perhaps catering to demographic tastes and needs, may tempt the shopper not drive out to the big box store, but instead loyal to their local market.
[a] company may have a unique vision, a superior product, strong management and an efficient distribution system – yet if it is not able to convey the core benefits of the brand to its target audience it will ultimately fail. [5]
This marketing strategy dates back from the 1960`s (with retailers` brands in different products categories in this period) but it really becomes popular since the 1980`s. Indeed, it is very expensive to create and launch a new brand in the market. In addition, the market is already full of different brands. Thus, brand extension is a way of “restricting” expenses and risks compared to the creation of a new brand. This strategy consists in using a current brand name to launch a product in a category considered as new for the company. This new product has different functions and a different nature in comparison with the product the brand used to do. For instance, Mars is well-known in the sweets department but can be found in the ice-cream department as
Marketing and Branding is essential to survival. The possibility of food specials will need to be explored, as well as discounts for students, the elderly, and veterans. The ability...
In past, Marketers have built their techniques under the presumption of unbounded assets and zero impact of environment. The growth in distinction of limited assets and high natural expenses, marketers need to rethink their observations, theory and practices. They have to modify their arrangements on ‘product’ improvement, estimating, sales and distribution, and branding and packaging. Financial recessions in recent years, has included an alternate layer of concern as consumers change their ways of life-style to a lower level of spending and income. Organizations must adjust scrupulously their development objectives with the need to seek out the market share and sustainability. The focus of changing marketing need requires meeting