Non Bleach Brand Extension

David Jobber and Fiona Ellis-Chadwick (2013). Principles and practice of marketing. 7th edition. United Kingdom: McGraw-Hill Education.

Brand extension is a technique in order to create a good brand image and increase the sales.

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.

David J. and John F. 2009, Foundations of marketing, 3rd ed., McGraw-Hill higher Education,5: 120-122

Kotler, P., & Keller, K. (2012). Marketing Management (14th ed., pp. 517-518). Essex, London: Prentice Hall.

According to Holt (2004), a brand can be defined as a term, name or a design that distinguishes product or service of one manufacturer from others. Brands are normally utilized in advertising, business and marketing. In accounting terms, brand is an intangible asset which is present within every organization. It is most valuable asset that is outlined in the balance sheet of a company. Brands owners need to effectively manage their brands in order to enhance shareholder value. Brand valuation is an important technique that associates money with a brand. Effective branding often results into high sales volumes of a particular product. A customer who prefers a brand is more likely to choose other products which are offered by the same brand. Brand can be stated as a personality that facilitates identification of a company, product or service. It even encompasses relation with other constituents like customers, partners, investors, staff, etc. Individuals distinguish psychological aspect of a brand from experimental

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.

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.

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.

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2012). Principles of Marketing. Frenchs Forest: Pearson Australia.

Armstrong, G. Brown, L. Burton, S. Deans, K., & Kotler, P. (2010). Marketing (pp. 4-40). New South Wales: Pearson

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.

For the purposes of this proposal, I focus on the second question: How does the target market react to brand remixing and what is the net effect? Is the reaction of the target market positive, negative, or one of indifference? Also, what mechanisms influence the response of the target market and how large are these responses. The literature has mainly looked at target marketing as having negative effects on non-target consumers. The unintentional, positive outcome of a brand being adopted by a non-target market has been minimally analyzed, and the resultant effects on the target market have not been studied. Conventional marketing wisdom, would have us believe that additional customers means more sales, but is every customer good for the brand? Is it possible for the brand to have a bad customer?

This essay will discuss the marketing environment as a whole, and will look in detail at certain aspects

The major point of difference for the Activeion portable handheld cleaning and sanitizing device is the different ways that it could benefit business users and households. Business users would enjoy this product because it meets the demand for being “green” or environmentally friendly. For a business to quote themselves as not using harsh chemicals to clean their building, it will attract a new market of environmentally friendly people as well as promote a healthier society. Business users would also enjoy it because the product is durable and will last a long time. Water is cheap and the benefits of the product will please the company. Households would enjoy this product because it completely clears the cleaning supply cabinet in every home. Households could clean the bathroom, kitchen, bedrooms, carpet, or anything around the home with simple tap water, and remove the use of child-proof locks. The fact that the device is safe around children is a very good selling point in regards of households.