...BRAND MANAGEMENT ASSIGNMENT -4 “Glow” Case Study Q1. What is the dilemma of Ranganathan. Why he should have a dilemma if its boss do not have? A1. The dilemma Ranganathan faces is that his Research and Development team have developed a new unique soap which has ‘anti-infection’ ingredient and at the time of the innovation had a unique niche market and also tremendous potential to grow as a product. The problem was that the new soap could cannibalize the mother brand ‘Glow’ if it was launched as an extension to it. However the new soap had resource constraints due to which it was not too feasible for it to be launched as a stand-alone product. Ranganathan could not decide whether or not to launch the new product as an extension to ‘Glow’, which already had 12 line and brand extensions which may have caused brand dilution also. Q2. Do you agree with Ranganathan decision to launch a new product with Glow’s line extension? A2. No, I disagree with Ranganathan strategy as the mother brand ‘Glow’ already has 15 line and brand extensions. Launching another product as an extension to it would further cause dilution of the image. Also the new product had tremendous potential due to which it might cause cannibalization amongst the various existing line and brand extensions. Q3. If you do not agree with Ranganathan, what is your brand strategy & how you implement the strategy in the constraints of organisational & financial structure ? A3. Ranganathan should launch the...
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...successful products. There are 3 things that Intel has done worldwide to solve this problem. The first, is the Intel Inside campaign - which must rank as one of the greatest advertising innovations - which has drawn attention to the Intel brand name. The second, is to ensure rapid global rollouts of all its products. The third, is to build a brand stronger than the "X86" nomenclature - by opting for the name Pentium instead of the dry 586 - the natural successor. Pentium was launched with fanfare, and a hiccup not withstanding, succeeded as expected. The added bonus was the brand name which brought the product out of numerical nomenclature and made it a high-recall brand. It was, however, the success of Pentium that put Intel in a quandary. When the 5th generation processors time came to yield place to the new, 6th generation chip, Intel was loathe to see all the money poured into Pentium become history with the brand. It was this thinking that led to the 6th generation chip being named P6 instead of 686 or whatever it may have been. Intel, opted for a brand extension. Today, Intel must wonder what it wants to name the 7th gen chip. To continue with another Pentium extension would make economic sense, but the users of the brand may feel that any extension of pentium is ultimately a 5th gen chip, may perceive more value in any competitors product that is positioned cleverly as a 6th or 7th gen...
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...BRANDS AND BRANDING: RESEARCH FINDINGS AND FUTURE PRIORITIES Kevin Lane Keller Tuck School of Business Dartmouth College Hanover, NH 03755 (603) 646-0393 (o) (603) 646-1308 (f) kevin.keller@dartmouth.edu Donald R. Lehmann Graduate School of Business Columbia University 507 Uris Hall 3022 Broadway New York, NY 10027 (212) 854-3465 (o) (212) 854-8762 (f) drl2@columbia.edu August 2004 Revised February 2005 Second Revision May 2005 Thanks to Kathleen Chattin from Intel Corporation and Darin Klein from Microsoft Corporation, members of the Marketing Science Institute Brands and Branding Steering Group, and participants at the Marketing Science Institute Research Generation Conference and 2004 AMA Doctoral Consortium for helpful feedback and suggestions. BRANDS AND BRANDING: RESEARCH FINDINGS AND FUTURE PRIORITIES ABSTRACT Branding has emerged as a top management priority in the last decade due to the growing realization that brands are one of the most valuable intangible assets that firms have. Driven in part by this intense industry interest, academic researchers have explored a number of different brand-related topics in recent years, generating scores of papers, articles, research reports, and books. This paper identifies some of the influential work in the branding area, highlighting what has been learned from an academic perspective on important topics such as brand positioning, brand integration, brand equity measurement, brand growth...
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...When Brand Power Threatens Brand Extension There are two brands that I deter my MBA students from referring to in class. The first is CocaCola. Quite simply, Coke is the alpha of branding. And any reference to Coke usually ends up ridden with cliché’s and strategically void. If anyone ever begins a presentation on brands by talking about Coke you are in for a dull ride. The second unmentionable brand is Virgin. Inevitably the Virgin name comes up as soon as the topic of brand extensions and portfolios is mentioned, primarily because Virgin has been involved in more brand extensions than any other major brand in the past 20 years. The resulting portfolio of more than 200 different corporate entities breaks every established strategic guideline for extension and my students love nothing more than asking: "But how do you explain Virgin's success?" The simple answer is that I do not have to, because although Virgin does indeed extend its brand a lot, it rarely does so successfully. Fortunately for Virgin, Sir Richard is a consummate showman. Most business journalists confuse prevalence and proliferation with performance and power. Superficially at least, a brand portfolio that includes radio, beverages, cosmetics and airlines is a testament to the power of the Virgin brand. The launch of Virgin Mobile USA as a joint venture with Sprint PCS merely extended this remarkable track record while further obscuring the sad truth at the core of the Virgin brand. The purpose of brand extensions...
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...What valuable functions can brands perform for a firm? Brands also perform valuable functions for firms. First, they simplify product handling or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. 120. Describe the three ingredients of customer-based brand equity. There are three key ingredients of customer-based brand equity. 1. Brand equity arises from differences in consumer response. If no differences occur, the brand-name product is essentially a commodity, and competition will probably be based on price. 2. Differences in response are a result of consumers’ brand knowledge, all the thoughts, feelings, images, experiences, and beliefs associated with the brand. Brands must create strong, favorable, and unique brand associations with customers, as have Toyota (reliability), Hallmark (caring), and Amazon.com (convenience). 3. Brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the marketing of a brand. Stronger brands lead to greater revenue. 121. Advertising agency Young and Rubicam (Y&R) developed a model of brand equity called Brand Asset Valuator (BAV). What is the intent of the BAV model? List and briefly characterize the four key components (pillars) of brand equity. Based on research with almost 800,000 consumers in 51 countries, BAV compares the brand equity of thousands of brands across hundreds of different...
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...Chapter 8 – Developing a brand equity measurement and management system * Indirect approach: assess potential sources of CBBE by identifying and tracking consumers’ brand knowledge. * Direct approach: assess the actual impact of brand knowledge on consumer response to different aspects of the marketing program. * Brand equity measurement system: set of research procedures designed to provide marketers with timely, accurate, and actionable info about brands so they can make the best possible tactical decisions in the short run and strategic decisions in the long run. * New accountability- return of marketing investment. * Measuring the long-term value of marketing in terms of both its full short term and long-term impact on consumers is crucial for accurately assessing ROI. Brand Audits * Brand audit: a comprehensive examination of a brand to discover its sources of brand equity. Assesses the health of the brand, and suggests ways to improve and leverage its equity. * 2 steps in a brand audit: brand inventory and brand exploratory. * Marketing audit: comprehensive systematic, independent and periodic examination of a company’s marketing environment, objectives, strategies, and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. * Brand inventory: provides a current profile of how all the products and services sold by a company are marketed...
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...BE440 BRAND MANAGEMENT ASSESSMENT COURSEWORK Brand extension (or stretching) is a strategic concept which relates to managing the brand portfolio. In addition, it can be understood as a process by which the practices of branding extend to social contexts beyond the traditional business domain. Critically analyse the purpose, implementation, advantages and disadvantages of brand extension. Illustrate your argument with at least two practical examples of brand extension. By Mr. Olan Kaewwichit Brand extension (or stretching) is a strategic concept which relates to managing the brand portfolio. In addition, it can be understood as a process by which the practices of branding extend to social contexts beyond the traditional business domain. Critically analyse the purpose, implementation, advantages and disadvantages of brand extension. Illustrate your argument with at least two practical examples of brand extension. Companies must carefully manage their brands. First, the brand’s positioning must be continuously communicated to consumers. Major brand marketers often spend huge amounts on advertising to create brand awareness and to build preference and loyalty. For examples, General Motors spends nearly $820 million annually to promote its Chevrolet brands. McDonald’s spends more than $660 million. (Top 100 megabrands by total measured advertising spending, 16 July 2001, p.s2.) Such advertising campaigns can help to create name recognition, brand knowledge and...
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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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...making a decision on brand extension? How to define values that could be transferred to new versions of product? Companies adopt the brand extension strategy in order to facilitate the entry into new categories, as build a strong brand is a lengthy and expensive process. So the new product hits the market with the certification of a brand already recognized by the public. In this way while the brand transfers its credibility into the new category which is acting also comes off revitalized by new product. However, brand extensions or product lines are often not enough to replace the gains made by the original products. But still, companies end up not just extending the brands of their products, but also to themselves in an attempt to leverage its recognition in the category, or the economic exploitation of related categories. There are four steps that must be followed to make a successful brand extension, and they are, Determine the value of the current brand, define the categories for the new product and how it will relate to existing products, test the new positioning with consumers and develop and implementation plan. 2. What is the greatest danger when applying brand extension, that is, when using the name of the already established brand for new version of products or for various other products? Certainly we have to take precautions and we must consider numerous points before the development of the brand extension strategy. The brand cannot be extended without...
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...305–313 Contents lists available at ScienceDirect Journal of Business Research Brand extension feedback: The role of advertising ☆ Eva Martínez a,⁎, Teresa Montaner b,1, José M. Pina a,2 a b Departamento de Economía y Dirección de Empresas, Facultad de Ciencias Económicas y Empresariales, Gran Vía 2, Zaragoza 50005, Spain Departamento de Economía y Dirección de Empresas, Escuela Universitaria de Estudios Empresariales, María de Luna S/N Edificio Lorenzo Normante, Zaragoza 50018, Spain A R T I C L E I N F O A B S T R A C T Firms often use brand extensions as a way of introducing their new products, although they also risk diluting their brand image. In order to understand how consumers assess extensions and extended brands, the present work proposes and estimates a theoretical model, using the structural equation methodology. The results of the estimation indicate that the attitude towards the extension influences brand image and that this attitude is a consequence of the initial brand beliefs and the coherence of the new product. A multisample analysis also reveals that favoring the introduction of extensions through adequate advertising constitutes an efficient way of protecting brand image. © 2008 Elsevier Inc. All rights reserved. Article history: Received 1 May 2007 Received in revised form 1 February 2008 Accepted 1 May 2008 Keywords: Brand extensions Brand image Brand equity Advertising 1. Introduction Launching new products is a business activity...
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...Practices in Brand Extension: Effective Application of Brand Recognition BRAND EQUITY CAN BE DIVIDED INTO THREE COMPONENTS: EXPERTISE, EMOTIONAL ATTACHMENTS AND PRODUCT ATTRIBUTES Brand extensions are an effective and popular method of gaining a competitive advantage when entering a new product area. Consumers are faced with an increasingly complex and confusing marketplace. The ability of a brand to act as a mental shortcut for consumers, thereby simplifying the decision-making process, makes it one of, it not the, most important asset for a company. The ability of a brand to influence consumer behavior, and its subsequent value to companies, will increase as consumers face a growing amount of information in the marketplace. By placing a well-known brand on a new product, a company can imbue that product with all the positive associations of that brand, thereby giving it a competitive advantage. With some estimates of the failure rate for new products at 90%, the added value of being associated with a trusted brand can be critical to a new product’s survival. Given the increasing value of established brands and the difficulty in launching new products, the popularity of brand extensions is understandable. However, the brand extension process must be carefully planned in order to insure the value of the brand is successfully transferred to the extension without jeopardizing the brand’s equity. To do so, a company must understand how consumers perceive their brand and how an extension...
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...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
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...GB530 Brand Extension Marketing Plan: Guide Introduction Use this document as your guide to success. All Brand Extension Marketing Plan documents should use 1” margins, 12 pt. font, and include a cover page and a reference page. For the Brand Extension Marketing Plan assignments in this class you will not use the usual APA rules which require in-text citations as 1) no marketing plan ever uses direct quoting within its contents, 2) we are making an exception due to the nature of a marketing plan assignment and 3) you will not use double-spacing but instead you will use this document’s formatting. It is important that you write your Brand Extension Marketing Plan in third person (there is no “I” in a marketing plan), using your own words, and/or paraphrasing instead of direct quoting. Once deposited into the Drop box for grading, Brand Extension Marketing Plan assignments are submitted to Turnitin for a potential plagiarism review, so it continues to be important for you never to use anyone else’s words verbatim. For each of the Brand Extension Marketing Plan assignments, you should list, on the reference page, all of the references you used when preparing your plan. Again, you do not need to include the in-text parentheses noting references and timeframes as normally required in our APA assignments, but you do need to use APA to format your references list. If you have any questions on this exception to using APA, let me know. All the components of the Marketing...
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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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...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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