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Factors of brand extension
The concept of brand strategy
Recent literature review on brand extension
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My Voice: Brand Strategy Decision
According to Philip Kotler “A brand is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors. The business firm(s) faces the choice, whether it should brand its product or not? The Generic products can be offered to the consumers at a price lower than the branded products with standard or lower quality. The brand sponsor decision involves the decision about who is going to brand the product, manufacturer or re-seller or will it be a combination of the two? Indian retailing has seen a lot of ups and downs over the last few years. With the increasing growth of the organized
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An example of a product line extension is the Toyota Lexus brand, which is a high-end extension of the basic Toyota brand that targets consumers looking for bargains. Line extension refers to the expansion of an existing product line. For instance, a soft drink manufacturer might introduce a "Diet" or "Cherry" variety to its cola line.
(2) Brand Extensions: A company may use its existing brand name to launch new products in other categories. Brand extension refers to the expansion of the brand itself into new territories or markets. For instance, if a soft drink manufacturer unveils a line of juices or bottled water products under its company name, this would constitute an example of brand extension. Gap stores now feature its name on soap, lotion, shampoo, conditioner, shower gel, bath salts, and perfume spray.
(3) Multibrands: A company will often introduce additional brands in the same product category. Seiko establishes different brand names for its higher priced (Seiko Lasalle) and lower-priced watches (Pulsar) to protect its flanks. P&G offers nine different brands of
New product in the form of a brand extension in a segment that has not been touched.
Market penetration involves with entering a new market with an existing products (Ansoff, 1957). Red Bull can make changes in the products they offer by introducing different flavours and non-caffeine drinks to penetrate the new market. This diversification of products will show their innovative skills to their customers. The company should improve their existing product and use market research, product adaptation analysis, and legal review to seek expansion for the existing products (McDonald, 2007).
There are typically four areas for market expansion; product development, diversification, penetration, and market development. What business you are in, what brands you have, and the type of products you offer will influence the type of market expansion that best fits the business. Coca Cola is giant in all the areas noted above when it comes to market expansion but what both companies had in common was the recognition that "Market development” was essential to revenue growth.
A line extension or a new product line will require additional investment for product development and marketing activities.
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
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.
Differentiation through marketing strategies, this is a form of innovation driven by the need to create a superior brand (Sadler, 2003).
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
Gone are the days when supersizing brand portfolios and product line extension were the pioneer strategy to rule the domestic market and conquer the global ones. Brand rationalization has emerged as the “panacea” to overcome the ills of supersized portfolios- be it the FMCG, Mobile services, Electronics or Automotive sector. However, the implementation of Brand rationalization (reducing the portfolio size by deleting or merging brands) has its own challenges.
Product extension – To introduce new product to an existing brand e.g Creating a new pro action running shoe to compliment the pro action running wear
Brand; - brand is known as uniqueness in term of what products or service the company provides. Brand is also set of insight or image that represents seller. Brand defines symbol, name, term or feature of company’s service or goods. Example of popular brand is apple, Amazon and Samsung.
What is brand? Brand is a trade name which can distinguish from other product or service (Intellectual property office, 2013). Another meaning of the brand is to convey the promise or message to the customer (Intellectual property office, 2013). A powerful brand can lead the company to go further in the industry and it can develop the company's potential (Temporal, 2010). Therefore, brand is a signifying of the company.
Secondly, some light has been thrown on the previous researches by various authors on the similar topics by providing with a summarised form of the same. It helps in better understanding of the ongoing concepts and perceptions on the concept of brand and its importance.
For the product, 100PLUS can be identified as an augmented product and potential product. Augmented product which is give rise to differential advantage in features or benefits that can be delivered bow to go beyond
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.