Introduction
Brand extension refers to the successful use of an already successful brand name to launch a modified or new product in a new market or niche. The management of brands is a key element in product strategy in any given business, especially those that operate in highly competitive markets. Brands cannot be developed in isolation, in that they normally categorized within a business product group or product lines. In relation to a product mix, its width can be measured by the number of product lines that a business enterprise offers. This is because a product mix is the total set of brands that are marketed by a business; therefore, it contains several product lines.
Consider the following brands and discuss the extendibility of brands
Brand extension refers to a marketing strategy in which a a business that is marketing a product with a robust image uses the same brand name in a different brand category. It is also known as brand stretching because organizations use it as a strategy to leverage and increase the organization’s brand equity. This helps in increasing awareness of the brand and at the same time increases the organization’s profitability from offerings in more than one product category. Brand extension is wholly dependent upon how strong consumer’s associations are to the brands goals and even values.
Harley-Davidson
Founded in 1905, the Harley-Davidson Motor Company was the only motorcycle manufacturer in the U.S after Indian Motorcycles closed down back in 1953. The American “Motorcycle culture” grew between the 1950’s and ‘60s. This was influenced by movies such as “wild ones” and “Easy Rider”, which helped equate the Harley-Davidson with a lifestyle of a motorcycle outlaw who were perceived as to...
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...not popular the masses, because the product is often seen as a quintessential Australian product.
Summary
During the early 1990’s, many new products used brand extension to create sales and introduce new brands into the market. Brand extension helps to mitigate budget constraints and costs used for launching a new product. This is because launching a new product not only needs a big budget but it is also time consuming. Brand extension is instrumental in the creation of awareness and the promotion of the product’s benefits. It helps reduce financial risk by using an established parent name to enhance consumers’ perceived perception of the brand due to brand equity. This paper examined a number of brands and its successes and failures in terms of brand extendibility, these brands include Harley-Davidson, Red Bull, Tommy Hilfiger, Victoria’s Secret and Vegemite.
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.
Branding is defined as “the promot[ion] of a product or service by identifying it with a particular brand” (Merriam-Webster, 2015). Branding is also used to create a corporate image or brand by utilizing logos, corporate statements, and other images that will be associated with or displayed on all of that company’s products (Wolak, 2002). A brand is a valuable, enduring asset that is essential in creating and maintaining competitive advantage in an industry (Wolak, 2002; Murphy, 1988). This corporate asset can be just as important as the product or service behind it, because it carries name recognition and peace of mind to customers in the purchase decisions they make everyday (Hall, 2008). Brands essentially work as a “shorthand device” for consumers to evaluate product decisions by conveying a message of uniform quality, credibility, and experience
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).
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.
Distinguishing one product from another depends on the target market’s ability and in turn the success of any business or consumer product (Lamb, Hair & McDaniel 2009). In the marketing industry and the business world, brand is defined as “a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of others.” (Bennett, P.D., 1995). Brands are a common part of marketing and they serve as value to consumers. Brands also give firms a competitive edge over another and a certain leverage over its customers.
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).
Major escalation in the amount and kind of investments necessary to support a successful brand. Total brand management takes a variety of forms: Heavy investments in information systems, customer service which contribute to marketing of the core product, Leveraging innovations, marketing investments and trade promotions over a coherent brand port...
Brand could be anything a name, sign, term, symbol or a design that differentiate a company’s product and services it from the competitors. Brands directly affect the consumer’s purchase behavior (Erdem, et al., 2002). Furthermore, Branding is a mean for differentiation which leads to get competitive advantage over customers, brand equity helps in building a brand (pappu, et al., 2005).
This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.
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
A brand identifies a seller’s product from a competitor’s product. There are three main purposes for branding product identification, which is the most important purpose, repeat sales, and new-product sales. Branding has a lot of terms that marketers use there is brand equity, global brand, and brand loyalty. Marketers also have different brand strategies that they use for different products or customers. It all depends on the consumer for them to decide which strategy they will use. The different strategies are generic products, manufacturer’s brands, private brands, individual brands, family brands, and co-branding. The branding purposes and the branding strategy make up the importance of branding.
Product is the core of marketing, which including tangible goods like food or drinks or intangible services, as it is the major way to embody customers requirements; and, branding is directly associated with it. In fact, branding is all about decisio ns of products, like brand names or trademarks. Stork (2007) asserted that a brand is a unique business identity which represents the personality, quality or origin of products. And, such a product which added value by branding would appear in every activity of marketing, namely, branding is actually react on the whole marketing system directly and indirectly.