Talking about rare pieces of works, what entering right into our minds is to preserve it. In a business world, we also decide to preserve our position to strengthen our images. For some entrepreneurs, the word ‘Brand Extension’ might mean ‘devalue’ because this action brings about some consequences that lead to change the brand positioning according to several cases that have been failed with brand extension. For instance, in 1999, the famous women magazine named Cosmopolitan has launched the new product that really contrasts with what they actually do, The Cosmopolitan yogurt. Sounds awkward? But if we embrace to clearly spot both pros and cons of brand extension, we will understand that brand extension is such a marvelous action. Videlicet, …show more content…
In order to create a successful brand extension, we have to heuristically decide how to raise the sale of our business and put the right strategies in the right time. As an illustration, Marks & Spencer, the retail sale of clothing, has been auspiciously broadened its new goodies and services such as the retail sale of food, furniture, and financial service. After extended, Marks & Spencer found out that the Financial services now account for 18 percent of the group's total operating profit. Withal, plenty people still believe that brand extension leads a business to a failure. It is not about the brand extension but it is about how we understand and manage …show more content…
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
More important than product, people, and advertising, branding is going forward as one of the most important factors in a business. While Klein has a bias against branding and wishes the reader a word of warning, in this specific essay she focuses on what branding means for the future. Klein starts off her minor claims with the bloating of corporations. “A consensus emerged that corporations were bloated, oversized; they owned too much, employed too many people, and were weighed down by too many things (Klein 769).” Through the use of branding, these same businesses could cut down all of their problems and payrolls through importing and simply putting their brand name on the product. Then when the dreaded “Marlboro Friday” happened, and it seemed that all brand significance was for naught, Klein showed us examples of businesses that thrived from a new age of marketing. “For these companies, the ostensible product was mere filler for the real production: the brand (Klein 774).” With brand driven marketing rather than product driven sales, businesses soared with selling the idea of their products more than their products quality. Using the example of Starbucks, Klein also supports her claims of branding not through marketing but weaving its name into products and culture. “The Starbucks coffee chain was also expanding during this period spinning its name into a wide range of branded projects: Starbucks airline coffee, office coffee, coffee ice cream, coffee beer (Klein 775).” By spreading its name not through marketing, but through spreading the brand through new and different products Starbucks found success in turning their brand concept into a virus and sending it through cultural sponsorship, political controversy, consumer experience and brand extensions. These forms of image building could make a company like Starbucks successful with branding over
The second case study is focusing on the brand extension of Calvin Klein. According to Learning & Memory chapter, brand extension strategy is “try to capitalize on consumer’s positive associations with an existing brand or company name.” We gave a logo “CK, ” and everyone would know this is a logo from Calvin Klein. Calvin Klein has struggled around many fashion brands like Tommy Hilfiger, or Ralph Lauren. Since the 1970s, the fashion designer Calvin Klein had add sportswear, classic blazers, and lingerie to his women’s collection. After that, the company made attempts to create its fragrance line. Since the 1980s, Klein expanded the market of men’s underwear (Calvin Klein Underwear collections) and nowadays, we can see celebrities like Justin Bieber or Kendal Jenner are the face of CK’s underwear campaign. Many brand names and licensing have been
Sarkar, A. N., & Singh, J. (2005). New paradigm in evolving brand management strategy. Journal of Management Research, 5(2), 80-90. Retrieved from http://search.proquest.com/docview/237238894?accountid=28644
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
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
What is branding? Branding has been advocated as a potentially successful response to heightened market concentration; it offers the possibilities of centralized control and format standardization, and an added value or cost driven strategy can be used to differentiate the retail offering and reinforce market positioning. Brands provide informational cues for buyers about the store's merchandise quality, and favourable images of brands positively influence patronage decisions." Successful retail branding can provide a form of "insulation" against price competition and states: "Where the store brand name is itself a brand name based on a quality appeal, it will be easier to position the own brand as a premium product under the same name" (Schmidt, R., & Pioch, E., 2005). Further as consumers, we tend to think about brands as symbols like the Nike swoosh or McDonald’s golden arches; the working definition of a brand is broader. A brand is usually defined as a name, logo, symbol, words, or combination of these, intended to distinguish a particular company’s offerings from those of competitors. In this sense, the modern use of the word “brand” harkens back to its older meaning which is a distinguishing mark or burn to identify wine, livestock or other commodities by their owner (Koehn, N., 2013).
...er than sales, the companies should adapt themselves to suit the needs of the consumers mindset at the right time in the right channel. It’s necessary for brands to unite their business goals and brand attributes with deep audience interests, needs and passions. This way they can give the audience something that they will actively seek out, amplify and share with others.
[1] Aaker, D.A. and Jacobson, R. (1996) Building Strong Brands. New York: The Free Press.
Thus we see that brand extensions are double-edged swords in the hands of the marketing manager. They can be used to leverage the popularity of the parent brand and reap huge profits, however poorly executed brand extensions can hamper the image of the parent brand too.
Aaker, D.A., (1991), “Managing Brand Equity: Capitalizing on the Value of a Brand Name”. New York: Free Press. P. 134-140
Helm, C., & Jones, R. (2010). Extending the value chain – A conceptual framework for managing the governance of co-created brand equity. Journal of Brand Management, 17(8), 579-589. doi:10.1057/bm.2010.19
Hence the corporation needs to evaluate and possibly adjust the corporate branding strategy on a regular basis. Obviously, a corporate brand should stay relevant, differentiated and consistent throughout time, so it is a crucial balance. The basic parts of the corporate branding strategy like vision, identity, personality and values are not to be changed often as they are the basic components. The changes are rather small and involve the thousands of daily actions and interpersonal behaviors, which the corporations employ as part of the brand marketing efforts. But make sure complacency does not take root in the organization and affects the goal setting. The strong brands are the ones which are driven forward by owners whom never get tired
This has been guided by the company’s successful strategies to create value and gain a competitive advantage in the market. Among the company 's strategies is the creation of a strong brand among the customer base (Mishra, 2011). The latter allows the company to impose premium prices on its products. The company has also adopted a diversification strategy whereby it produces a wide range of products such as shoes, gear, clothing, and many other sporting products (Lussier & Kimball, 2013). Notably, this has been a major source of competitive advantage for the company. Additionally, the company 's strong advertisement campaigns and strong global presence are sources of competitive
• Aaker, David A. & Joachimsthaler, Erich, “Building Brands Without Mass Media”, Harvard Business Review, January-February 1997, pp.39-50.
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.