Brand Extension Essay

The company has recently decided to expand its product line to include a product that is a deviation from our traditional offerings. The expansion presents two potential outcomes. Outcome one has a potential for profit, incremental growth, and additional market share for the company. Outcome two has a potential for financial loss, reputation or brand damage and reduced market share.

It is interesting to see how branding, advertising, and marketing, that are in place to achieve specific commercial goals, completely rely upon the complex elements of human psychology, as well as on how cultural norms and values influence the individual. This has in fact been an integral concern of marketing historically; the mere presenting of a product or service is ineffective unless some reflection of its deeper value or meaning to the potential consumer is reinforced. In the mid-20th century, for example, advertisers placed a large emphasize on the post-war norms within American society, and stressed how products provided ideal supports for the idealized suburban household. This in turn affirmed existing ideas of gender roles so then, as now, marketing simultaneously employs and shapes cultural norms. This being the case, the ways in which socio-psychological principles are employed in branding, advertising, and marketing are intrinsically multifaceted and evolving as the cultures evolve. In a very real sense, marketing is perpetually “keeping pace” with social changes, just as it impacts on those changes through creating ideas exposed so widely to the society. As the following review of literature supports that, social and psychological concepts and principles are essential to successful marketing and branding, just as commercial agendas seek to instill or reinforce traditional norms going to product appeal.

be any issues with the product entering the marketplace based on the company’s consumer base.

Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.

* From the scenario, analyze the goals, product, price, and promotion for the new product launch in each stage of the product life cycle. Recommend two (2) marketing tactics and strategies that the marketing intern should consider in order to increase product revenue over time. Provide rationale for your response.

However, this strategy also has some disadvantages that may hurt the company’s development: The first is the fierce competition between these brands. And it is important to note that using this strategy means facing higher risks. Cost control is another big problem. Obviously, the more brands there are to manage, the higher the costs. For this reason, many prudent companies prefer brand extension over multi-brand management.

m. How is the firm’s current brand positioned relative to the competition? (i.e. How is their image/reputation different than their competition’s image/reputation? Is it different?).

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

Throughout the dissection there were many opportunities and weaknesses to uncover. Strong consumer loyalty is an important strength that can help increase word-of-mouth of the brand. Many people look for information for new brands online through websites, reviews,

But for new customers, the new brand extensions will be essential to be able to offer a competitive product offering that will attract them to the brand. Therefore, we can avoid conflict between both segments by letting them choose the products they want depending in their needs.

Consumers are frequently confronted with innovation that requires them to adopt new behavior or discontinue previous behaviors. Although they may be excited by the performance potential of new products, consumers become increasingly concerned with

First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.

In such cases, brand extension is a very feasible scenario where in both the parent and child product enjoy a symbiotic relationship.

The purpose of this report is to use a variety of research techniques aimed at understanding the role that knowledge and group influences have on a consumer’s decision-making process. Additionally, the report will advise a range of recommendations that an inert brand can adopt to guarantee its inclusion in the consumer’s consideration set of brands.

The first factor is economies of scale which forces entrants to come in with large scale or sustain a cost disadvantage and deter entrants. The giants in consumer goods market including Unilever, P & G, and Kraft have already achieved mass production. For instance, Unilever possesses more than 400 brands including Dove and Lux which are worth billions of dollars. And its turnover in 2014 summed up to €48.4 billion (Unilever, 2014), which indicates its high production level. The second factor is product differentiation which forces entrants to spend large money and time in accumulating its own consumer loyalties. P&G, Unilever, Kraft and other giants of consumer goods producers have already researched and developed their unique product under various brands. And some of them are greatly valuable which include Dove ($5314 million), L’Oréal Paris ($23376 million), Gillette ($19737 million) (Statista, 2015), Nestle ($12.2 billion) and Kraft ($9.2 billion) (Forbes, 2015), which immobilizes the market share distribution powerfully. In conclusion, the entrant’s threat is weak due to high level of economies of scale and production