Marketing Management Debates
Chapter 10
Brand extensions Good or Bad:
Brand extensions are a good business growth strategy as it allows the company to organically grow revenue. However, extensions must be carefully evaluated and chosen to ensure that the related affect is what is expected. For example, the company needs to make sure that any extension to the brand supports those brand elements or attributes that customers associate with the brand. Any product extensions that conflict, deteriorate or dilute the brand.
Brand extensions can be a profitable business growth strategy by associating the new product with the existing strong brand that the company has developed. For example, Nike started out as a running shoe manufacturer. They built their brand equity by developing the brand elements of being memorable by: * Memorable & Meaningful - have a simple tag line of “just do it” was easy to remember and evoked an emotion of accomplishment/satisfaction, * Likeable - their products were well made and designed, * Protectable – their innovated ‘waffle’ pattern on the show sole as well as their name was patented and copy write protectable, and * Adaptable – they expanded their shoe product line to include hiking, walking and cross trainers.
The last criteria of the brand elements, transferable, is what made Nike more profitable and successful. Leveraging the strong market position and brand equity, Nike extended their brand out into active clothing wear. This extension decision was a great growth-strategy, as the product(s) complemented and enhanced their brand image. By offering active wear, then could create additional associations to affiliations to professional athletes (non-runners) as well as fashion conscious consumers.
Brand Equity Model:
Brand Equity is measured based on how well the brand is recognised and favoured over its competitors. It is the added value endowed on products and services. The value-addition may be reflected in the way
Brand extensions Good or Bad:
Brand extensions are a good business growth strategy as it allows the company to organically grow revenue. However, extensions must be carefully evaluated and chosen to ensure that the related affect is what is expected. For example, the company needs to make sure that any extension to the brand supports those brand elements or attributes that customers associate with the brand. Any product extensions that conflict, deteriorate or dilute the brand.
Brand extensions can be a profitable business growth strategy by associating the new product with the existing strong brand that the company has developed. For example, Nike started out as a running shoe manufacturer. They built their brand equity by developing the brand elements of being memorable by: * Memorable & Meaningful - have a simple tag line of “just do it” was easy to remember and evoked an emotion of accomplishment/satisfaction, * Likeable - their products were well made and designed, * Protectable – their innovated ‘waffle’ pattern on the show sole as well as their name was patented and copy write protectable, and * Adaptable – they expanded their shoe product line to include hiking, walking and cross trainers.
The last criteria of the brand elements, transferable, is what made Nike more profitable and successful. Leveraging the strong market position and brand equity, Nike extended their brand out into active clothing wear. This extension decision was a great growth-strategy, as the product(s) complemented and enhanced their brand image. By offering active wear, then could create additional associations to affiliations to professional athletes (non-runners) as well as fashion conscious consumers.
Brand Equity Model:
Brand Equity is measured based on how well the brand is recognised and favoured over its competitors. It is the added value endowed on products and services. The value-addition may be reflected in the way