...of awareness of the brand 2. Rank of the bra nd in its product category 3. Similarity of the extension to the parent brand 4. Reputation of the firm Brand Associations 1. Quality of the brand 2. Attitude towards the brand 3. Satisfaction from the brand 4. Rate of return from the brand 5. Usage level of the brand 6. Level of stock of the brand. Brand Attributes 1. Packing of the brand 2. Pricing of the brand 3. Advertising of the brand 4. P romotional measures of the brand Attitude towards extension category Attitude towards the Brand Extension Product Fit Brand Fit Brand Pers onality Perception of Fit 1. Level of awareness of the brand 2. Rank of the bra nd in its product category 3. Similarity of the extension to the parent brand 4. Reputation of the firm Brand Associations 1. Quality of the brand 2. Attitude towards the brand 3. Satisfaction from the brand 4. Rate of return from the brand 5. Usage level of the brand 6. Level of stock of the brand. Brand Attributes 1. Packing of the brand 2. Pricing of the brand 3. Advertising of the brand 4. P romotional measures of the brand Attitude towards extension category Attitude towards...
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... OF PRODUCT & BRAND MANAGEMENT ON SUCCESSFUL AND UNSUCCESSFUL BRAND EXTENSIONS SUBMITTED TO- Mr. Sai Ganesh SUBMITTED BY –Khushbu Roy DSBSPGDM09022 BRAND EXTENSION “Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category.” Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. Extending a brand outside its core product...
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...NEW PRODUCTS AND BRAND EXTENSIONS To facilitate the discussion, it is useful to establish some terminology. When a firm introduces a new product, it has three main choices as to how to brand it: 1. It can develop a new brand, individually chosen for the new product. 2. It can apply, in some way, one of its existing brands. 3. It can use a combination of a new brand with an existing brand. A brand extension is when a firm uses an established brand name to introduce a new product. When a new brand is combined with an existing brand, the brand extension can also be called a sub-brand. An existing brand that gives birth to a brand extension is referred to as the parent brand. If the parent brand is already associated with multiple products through brand extensions, then it may also be called a family brand. Brand extensions can be broadly classified into two general categories: Line extension: The parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. A line extension often involves a different flavor or ingredient variety, a different form or size, or a different application for the brand (e.g., Head & Shoulders Dry Scalp shampoo). Category extension: The parent brand is used to enter a different product category from that currently served by the parent brand (e.g.. Swiss Army watches). Most new products are line extensions—typically 80 percent to 90 percent in any one year. Moreover...
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...Brand extension, or using a brand that is already set in the market to join a new product category is a method that is often used in order to diminish the risks of introducing a new product. Choosing a right strategy when expanding a product category is primordial for a company. Introducing a new product carries many risks and costs: it is costly because the development of a new product always entails many expenses, such as marketing, and it is dangerous because it is very hard to predict consumer reaction to a new product, especially under a new brand name. By going ahead with a brand extension a company can partially solve these two issues, by launching the new product under an existing brand name will reduce marketing and distribution costs and might attract consumers towards the good as they will go for a “known” brand. Levi-Strauss although being one of the world’s most known maker and distributor of denim and casual wear should consider a brand extension of larger clothes that target the growing plus size customer segment in the United States. This segment is a growing market, and many stores with incredible brand equity are not taking advantage of this growing segment. In fact, this segment has grown to 34 percent of the population, both male and female of all ages, and continues to grow dramatically every year. Also, this segment is a $27 billion dollar opportunity, and also appears to be increasing every year. Therefore, by this action of not manufacturing larger size...
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... 16.4.2015 TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………………………….3 INTRODUCTION……………………………………………………………………………...5 LITERATURE REVIEW………………………………………………………………...........6 BRAND EXTESNSION………………………………………………………………………..8 TYPES OF BRAND EXTENSION……………………………………………………............9 HORIZONTAL EXTENSION………………………………………………………………….9 VERTICAL EXTENSION……………………………………………………………………...9 NEED AND ADVANTAGES OF BRAND EXTENSION…………………………………….11 DISADVANTAGES OF BRAND EXTENSION STRATEGY……………………………….12 CRITICAL OBSERVATION…………………………………………………………............14 CONCLUSION…………………………………………………………………………………15 KEY LERATNING…………………………………………………………………………….17 REFERENCE…………………………………………………………………………………..18 EXECUTIVE SUMMARY These days marketing has become more complex and more demanding and research based activities are essential part of the Marketing to move forward. During early days it was considered that marketing is more related to sales activity but eventually it is emerged that it is a kind of multi and complex functions of activities which is infAct not finding the product but finding the customer for right product at right price and place with best services. Branding or brand management is considered in one of the activities such as SWOT Analysis, Marketing Mix Analysis, and Environment Analysis. Brand is a symbol of any product or producer which is identified on the basis of features of product/ services, process of producing product or services and people who involve in whole marketing...
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...Drivers of Brand Extension Success by Franziska Volckner & Henrik Sattler. Student ID: 0706335; Word count: 1837 Before we begin, we must first make a distinction between the concepts of “product” and “brand”. A ‘product’ is defined as a service or a good that can be offered to the market for consumption/purchase. An example of a product would be e.g. a Television set (good) or a Music concert (service). Brands on the other hand, exist to help consumers differentiate and identify between different types of product providers. As such, brands are one of the most enduring aspects of a company. Brand strength (also known as “Brand equity), measures the positive differential effect that knowing the brand name has on the actions of the consumer to the product/service on offer. A strong brand not only creates emotional attachment between the consumers, but also allows for the company to establish barriers to entry, enjoy high profits and undertake a variety of brand strategy decisions to continue increasing their appeal to customers. One of the most commonly used brand development strategies is – brand extension where by an established brand name is used to launch a new product. This strategy is popular because it allows the company to leverage the brands existing strength and customer base and as such spend less on product promotion & introduction campaigns, advertising, price deals etc (Collins – Dodd & Louvierre 1999; Tauber 1988). Since nearly 80% of brand extensions are unsuccessful...
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...Brand Name or Brand Umbrella (marjonel and fatima) Customers used to a brand would take the other product under the same of it and the same level of quality and provide similar type of satisfaction to them. Brand It is defined as “a set of images and associations linked to a commercial product”. Brand Special Features * Brand distinguishes the product from similar other products. * Brand creates specific customer needs and expectations of their fulfillment. * Brand can predict buyers’ behaviour of buying the product or just avoiding it. Brand Equity It can be defined as the “stored value built up in a brand for achieving competitive advantage.” Several Ways of Gaining Brand Equity * Resilience of the brand, its intrinsic strength as compared to the competitive brands. * Trials and test marketing of new products as brand extensions. * Premium prices secured by the company for the existing branded product and product extended products. Several Ways of Gaining Brand Equity * Leverage of brands in gaining access to the bets channels of distribution. * Access to the best media required by the target market segment at reasonable rates. Brand Value The company acquiring or buying a brand finds it more relevant than the companies that possess the brand. Brands provide leverage for brand extensions, as several products can be sold under the brand umbrella. Example: Coca Cola offers under the...
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...Brand extension: the body shop(interesting name, everybody have a body)Emphasis on communication(Think about global customers) Why would the brand extend Beauty with heart What the brand stand for (Armani has got hotel) SWOT Competitors Skin care, body care, Consumer Threats Be more precise Specific what is about Origin things Ethical economics Cosmetics or body care Skincare is something else Forecast tight the belt Value for money Why choose the body shop- How should they position it strongly Market growth Consumer taste, trends Implications of their strengths Summary of every swot How far could you stretch your brand The body shop competitors: Lush/L’occitane/Sephora/Kiehl’s/ Alliance Boots/ Olay/ Nivea Product line: – Bath and body care – Skin care – Fragrances – Make up – Men line Category: Cosmetics Slogan: Nature’s way to beautiful SWOT: S: - Wide range of beauty products: 8 Categories of beauty products with more than 1200 products - Huge franchisee network: Over 2,500 franchised stores in more than 60 countries - Re-designed store layout, not only ambience creates customer attraction, but also story selling to enhance emotional connection. - A high brand value and is viewed as a socially responsible company because of its engagement in many philanthropic activities - Good supplier network. Sources raw materials through Community trade fairs. W: - There is very little advertising of its...
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...Consumer Attitude Towards Brand Extensions: An Integrative Model and Research Propositions Sandor Czellar1 University of Geneva 1 University of Geneva, Section HEC, 40, boulevard du Pont-d’Arve, 1211 Geneva 4, Switzerland. 00 41 22 705 8114 (tel), 00 41 22 705 8104 (fax), czellars@hec.fr (email). 1 Consumer Attitude Towards Brand Extensions: An Integrative Model and Research Propositions The paper proposes an integrative model of the antecedents and consequences of brand extension attitude based on the dominant cognitive paradigm. The four key processes of the model are: (1) the perception of fit, (2) the formation of primary attitudes towards the extension, (3) the link between extension attitude and marketplace behaviour and (4) the reciprocal effect of brand extension attitude on parent brand/extension category attitude. Moderator and control variables of these processes are identified and classified into three groups: (1) consumer characteristics, (2) marketer-controlled factors and (3) external factors. This integrative model leads to the identification of missing links and variables in past research, resulting in a propositional inventory for future studies. The paper ends with a reflection on the long-term perspectives of scientific inquiry on brand extensions. Keywords: Brand extensions, Consumer Attitudes, Brand Associations, Brand Affect, Cognitive Psychology 2 Introduction Brand extension is the "use of established brand names to enter new...
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...creating building brand strategy. Provide an example of a company that has developed a strong branding strategy. The real impact and strength of a brand is in the thoughts, feelings, images, beliefs, attitudes, and experiences that exist in the minds of existing or future customers. This so called “brand knowledge” affects how those customers respond to products, prices, communications, selected channels and other marketing activities (ultimately, impacting brand value). A brand strategy is the proactive effort to use advertising tools to position a given brand relative to competitors, so targeted customers are convinced that the brand offers greater value than competing brands – goal is to positively impact those thoughts, feels, etc. of consumers. Thus, effective positioning is most important to attract customers, gaining marketing share and building a loyal following. Companies use a variety of strategies to establish strong, favorable, and unique associations for their brands. One needs to understand consumer behavior and how consumers make decisions about whether a brand is likeable or not. Thus, need to be clear about a) unique features of a brand (points-of difference) that are favorably seen by consumers, and b) features that are shared with other brands (points-of parity). Furthermore, marketing managers need to develop the right, memorable brand elements (name, logo, slogan, packaging, etc.) that customers can associate with the given brand. An example of...
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...Brand Extensions and consumers perceptions During the 21st century, globalization has transformed the way businesses operate (Doh, 2003). Competition is tougher than even before and for that reason, companies have to maximize their competitive advantages in order to stay in business. One way to do it is by exploiting their brand name through brand extension, the practice of using a well-known brand name to promote new products in an unrelated field (“Brand Extension”, 2013). Previous studies have shown that the success of a brand extension often depends on certain assumptions about consumer behaviour, such as “beliefs and favorable attitudes toward the original brand” (Aaker & Keller, 1990). Moreover, Aaker & Keller have shown that one of two factors must be respected for a brand extension to be successful: the perceived ability of a manufacturer to extend to a new product class and whether the new product is a complement of the original one or not (1990). They found out that when this factor is guaranteed consumers are likely to transfer the quality associated with the brand to the new product characterized by the same brand. This has to be true whether the brand is perceived as a high quality brand or not. We can find the evidence of this statement in their article when they describe the effects of a brand extension. They argued: “If the brand is associated with high quality, the extension should be benefit; if it is associated with an inferior quality, the extension...
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...Kaplan University Graduate School of Business and Management GB530 Marketing Management: Brand Extension Marketing Plan Dr. Blake Escudier July 15, 2012 1.0 Executive Summary The purpose of this marketing plan is to present a new category-brand extension product designed by DeWALT Power Tools and manufactured by Calloway Golf. The new DeWALT IronDrive Pro category line of golf clubs will embody the brand reputations of quality, power, top of the line features, superior technology and durability that have made both DeWALT and Calloway leaders within their perspective industries. This product is a specialty niche set of golf clubs packaged in a branded walking golf bag and also will include club head covers, a club towel, and balls to complete the perfect golfing experience. Consumers who purchase this product will enjoy the industry leading golf technology of Calloway and combined with the industry leading power tool features and benefits provided by DeWALT. The target market for this product consists of males 20-65 years old, college educated, makes an annual salary of $40,000 or more, and purchases high end products. The ideal customer lives all across the United States, but in particular resides in the industry’s largest regions of the Mid-Atlantic, New England, East North Central, South Central, and West North Central regions. The customer will have some knowledge of around the house DIY projects and tools to complete the task. The value...
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...An empirical test of brand extension on IMC effectiveness Natalia Alexander MKT/544 March 25, 2012 Jon Zimmerman An empirical test of brand extension on IMC effectiveness This article begins with a discussion of the airline industry in the last decade, and the failure of a number of airlines. Southwest Airline, the only U.S. airline to remain profitable in the last 15 years, has been the model that other airlines have tried to emulate. This includes startups. Established airlines such as United’s, Ted spinoff have tried to establish short-haul, point-to-point travel at an economical cost while maintaining ties to original brand. Ted (whose name is derived from the last three letters of United) made a valiant effort to distinguish its flying experience from the other budget airlines. Image was of vital importance to Ted, and the company tried to create an image of Ted being fun and relaxed. Ted had a brief life from 2004-2009 when it ceased operations. This article explores the desired image for the Ted spinoff, how the image was developed, and whether or not it was successful. Furthermore, Massey explores the effects of Ted’s IMC campaign. It also explores the claims made by IMC theorists as to the effectiveness of IMC and illustrates the role IMC plays in organizational image management. Organizational Image Management Organizational image management draws on sociology, communications and business to develop its perspectives on an organization. A business must develop...
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...the enthusiasm started failing as investments were not recovered from operations and profits were dipping. A number of factors pointed out that with amendments in Government rules and regulations, the industry could revive from their losses. Considering this, the Phase II of privatization was initiated in 2006, wherein the regulations were made more flexible and provided ample scope of growth. The general audience notion of the available radio stations is lack of differentiation in terms of content. This report gives a description of the problem regarding similar content and is a result of a market survey providing an insight in the consumer preference. Specifically, the report was an exercise conducted to validate the application of brand extension in service industry. 1 ACKNOWLEDGEMENT I am indebted to Dr. Samar Faten Badar, Faculty Member (Marketing,), for her great support and help all through the project. I am also thankful to Prof. Ramkishen, without whose help and support it would have been difficult to obtain the necessary data for the report. I would also like to thank the staff of the Mumbai University Library and the British Library for being patient and helpful all throughout. I would also like to thank the 120 odd respondents who took out time to help with the market research. 2 TABLE OF CONTENTS Executive Summary Acknowledgement 1 Introduction 1.1 1.2 1.3 1.4 1.5 1.6 2 Background Growth Potential and...
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...Assignment 1: Hörhammer case 1. SWOT analysis Strengths: -Having contacts to some other companies -Good reputation, because they always look for high quality works -They are familiar with their market and key customers Weaknesses: -Luck of high quality works -Competitors, Bukowski and Hagelstam Opportunities -Recovering from the decline and growing the market -Opening out other possibilities of the kinds of arts Threats -It is tough to find high quality works and evaluate them. -It is easily affected by external factors such as media, business depression, exchange instability, and so on. 2. Segmentation -Demographic segmentation Ages: elderly people and younger people The auction house received most of art works form private people who are collectors, elderly people, who wanted to move to better art works or wanted more money. It is thought of as the most of people who sell their art works are elderly people because they have knowledge about arts. It is important to change the way to advertise depending on the age. -Psychographic segmentation Lifestyle, Social class: -Behavioral segmentation It is essential to know when customers want to sell or buy art works, and how to appreciate them. That links to find key customers and potential customers. 3. Targeting Hörhammer auction has two types of auctions which are major quality auctions and B-auctions. -Extensive Market: B-auctions The price and value of B-auction is lower than...
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