The Right Brand Extension Strategy for Improved Company Performance

1310 Words3 Pages
bulb-icon

Recommended: Brand extension success factors

Introduction
When a firm innovate and develop a new product, a strategy is needed to sell the product effectively. Furthermore, the company should create unique characteristics for the product so that the customers will be attracted to the product. Those unique characteristics are known as brand.
There are many companies which started to introduce a new product by using the parent brand to the consumers instead of developing a new brand for the new product, as they believed that this could help to get more sales. This strategy is called brand extension strategy; the process of extending into different new product category class using the brand name of the company’s established brand. However, not all companies are successfully earn the same result, some of the companies are losing the customer loyalty, and worst damaging the company’s brand because they did not apply the brand extension strategy properly.
In this report, an in depth analysis of brand extension strategy will be conducted; characteristics, advantage and disadvantage, types and principles of brand extension strategy will be explained. Furthermore, a study from well-known companies that used the brand extension strategy will be done. Lastly, conclusion will be given after the analysis.
The purpose of this report lies in conducting an in – depth and high quality literature overview on the brand extension strategy. Through this, it is anticipated that readers will gain better understanding on how importance to know the exact way to use the brand extension strategy and will use the strategy in a proper way.

What is brand extension strategy?
Before brand extension strategy are explained and analysis, the definition of “brand” itself is needed to get better insight....

... middle of paper ...

...://www.brandextension.org/definition.html. [Accessed 10 January 2014].
NaminAiddin T and MoghaddarAkbar (2013). The Impact of Brand Extension on New Product from Customer’s Perspective. International Research Journal of Applied and Basic Science, pp 789-800
Ranjbarian B, Fathi S, Jooneghani R. B. N. (2013). Determining the Effect of Brand Extension Strategies on Consumer Attitudes to New Products in the Sports Apparel Market. International Research Journal of Applied and Basic Science, 5.
Sanjay K. P. and Anand K. J. (2003). Consumer Evaluations of Brand Extensions : Evidence from India. International Academy of Business and Economics.
Utama B. Brand Extension The Benefit and Pitfalls. Bloomhead, Jakarta, Indonesia.
Vukasovič T (2012). Launching of a New Product with the Brand Extension Strategy. International School for Social and Business Studies, Celje, Slovenia.

Show More
Related

  • Contadina Pasta Case Study Summary

    1097 Words  | 3 Pages

    New product in the form of a brand extension in a segment that has not been touched.

    Read More

  • The Brand Personality of Target Corporation

    1039 Words  | 3 Pages

    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.

    Read More

  • Allround Executive Summary

    1150 Words  | 3 Pages

    There will be more experiential marketing towards the beginning of a new line extension/product, to promote brand switching from the competition products while creating brand awareness at the same time based on the value creation of each new line/product. The reduction in advertising budget due to high brand awareness of Allround will help us allocate more financial resources towards experiential marketing. As a team, we agreed that this was the best way to draw in more customers with heavily affecting the bottom

    Read More

  • Halo Effect In Branding Analysis

    1688 Words  | 4 Pages

    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

    Read More

  • Mision, Vision and Intent of Masco Cabinetry

    1001 Words  | 3 Pages

    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

    Read More

  • Heineken Case Study

    770 Words  | 2 Pages

    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.

    Read More

  • Tesco Marketing Strategy

    1665 Words  | 4 Pages

    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

    Read More

  • Burberry Case Study

    899 Words  | 2 Pages

    It is often said that the business will have to develop its marketing strategy whether small, medium or large business because of the growing marketing and competitive business increased rapidly. Therefore, don’t be surprised if the business has failed and successful. The successful business around the worlds which are KFC and Burberry. Those are interesting marketing strategy because of the challenged of the marketing with a long time, experiencing the issue failed and band revitalization of marketing strategy. The main objective of this report studies brand revitalization between KFC and Burberry. How KFC and Burberry were able to revitalization its brand. In this report to divide into three main sections,

    Read More

  • Function of a Brand Exploratory

    1121 Words  | 3 Pages

    The second step deals in creation of proper brand meaning through powerful and unique brand connection with the customers. The third step involves invoking positive brand response while the fourth one involves engaging the customers so as to build a brand affiliation aimed at enhancing active brand loyalty. However, some building blocks are requ...

    Read More

  • Nike's Brand Development Efforts

    2189 Words  | 5 Pages

    One of the fundamental parts of successful brand creation process is developing the strong brand image and communicate brand ID across all available media channels. This essay will discuss and evaluate companies NIKE marketing strategies in terms of companies brand development efforts. The company’s success in the footwear, apparel and accessory markets will be linked with marketing branding concept. Furthermore, the discussion on NIKE marketing strategies and their efforts to preserve and increase the leading market position and marketing activities to increase brand equity will be discussed and critically evaluated.

    Read More

  • Branding, Pricing, and Distribution: Home Depot

    1572 Words  | 4 Pages

    A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing logos, names, color schemes, and slogans. An effective branding strategy is one of the most important components for gaining a significant advantage in a progressive market. Basically, a company brand is its promise to its customers about what can be expected from its product and how it differentiates from the competitors. The branding strategy is the part of the marketing plan that explains how and to whom the company proposes on conveying its brand messages. It will also explain where the company plans to advertise and what it will publicize both visually and verbally (Williams, 2013). Home Depot’s marketing plan will contain domestic and global branding strategies and will be a collaboration of brand messages from both Home Depot and Reach the Top®.

    Read More

  • The Significant Factors To Building Brand Awareness

    337 Words  | 1 Pages

    The review of relevant literature is to identify what's brand awareness and how to carry out in strategic marketing, and consumers' behavior. The study prove that the significant factors on brand awareness as a perception of product, service, and image of the company and has a tremendous effect on consumers’ evaluation of system results. From reading all of the relevant journals, it is understandable that the significant factors on building a successful brand image and awareness is consumers and their relationship with the brand, company, service and the product. Brand awareness is the vital importance to marketing strategy and marketing communications because it links customer behavior to firms’ financial metric. Keller (2001), noted, customers’ reaction toward brand awareness is associated profitably brand equity.

    Read More

  • Relationship Between Advertising and Sales Promotion

    1171 Words  | 3 Pages

    Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.

    Read More

  • Essay On Branding

    761 Words  | 2 Pages

    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.

    Read More

  • Essay On Marketing Strategy

    3236 Words  | 7 Pages

    The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits. It includes all basic and long-term field activities of marketing that deal with the analyzing of initial strategy, evaluation of the strategy, and making of a new strategy if the initial strategy is found to be ineffective or even might cause loss. (Homburg, Kuester and Krohmer 2009) To make sure the effectiveness of marketing strategy, its crucial to establish the right marketing mix which cover all the element needed in marketing a product. (Clark, et al. 2009)

    Read More

More about The Right Brand Extension Strategy for Improved Company Performance

Open Document