¶ … drive brand extension success, and how these factors affect the decision to introduce a new product. Brand extension refers to the corporate activity whereby companies introduce new products, new product variants or product improvements by leveraging the brand equity of the existing parent brand (Roll, 2011).
The use of established brand names to launch new products is a frequently used branding strategy. In general, extending brands both within and beyond the original product category is profitable because it is assumed that brands are already known and recognized. As a result, the new product therefore requires lower introduction expenses, such as advertising, trade deals, or price promotions (Volckner and Sattler, 2006).
Even so, brand extension success is uncertain. According to Volckner and Sattler (2006), studies have shown failure rates of approximately 80% in many fast-moving consumer good product categories. Their research also reveals the kinds of success factors that play an important role in the success of an extension product. For example, studies reveal that the quality of the parent brand and the fit between the parent brand and extension product categories are significant brand extension success factors (Volckner and Sattler, 2006).
The fit between the parent brand and the brand extension is probably the most significant factor that affects the success of the brand extension. In general, fit refers to the compatibility of the brand extension's product category, product attributes and associations to the parent brand's product category, product attributes and associations. The better the fit between the parent brand and the brand extensions, the higher the probability of the success of the brand extension (Roll, 2011).
Another important factor that influences the success of the brand extension is the quality of experience that consumers have had with the parent brand. Such brand experience may include the physical quality of the product, service encounters, price and value perceptions, post-purchase service, retail atmosphere etc. Also, parent brand conviction,…
This extension has great reviews because of its simple and brand oriented outlay. The product has had great success because Starbucks chose to extend its brand to something its market likes. The marketing research adduced that at least 50% of their clientele also drink coffee liqueur. The coffee liqueur is in beverage form. This helps make their brand identification the same (De Mesa, 2005). Starbucks seems to have gone
Companies that have invested in defending their brand and managing the customer experience outside of their website have seen great returns. Within the travel industry, for example, companies such as InterContinental Hotels Group and Royal Caribbean Cruises have both extended their reach to manage the customer experience on partner sites with a very high degree of success. In each instance, their efforts have resulted in an improvement in the
This level of the maturity model is a transitory one and is focused more on either small, incremental gains from the first level, which is Reacting. In the Reacting layer of this proposed Branding Maturity Model, the majority of brand departments have a decidedly "every department for itself" approach to process maturity and have information flow that is purely dependent on personal productivity applications only. That is to say
brand strategy is a challenging task for many companies but it is a vital step in giving the company an identity of its own. It is this identity that is repeatedly communicated thought the business life. Developing a brand management strategy involves applying marketing techniques to a brand, or a product with the intention of giving it a unique image and to set it apart from the competitors. We
Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands
Marketing Co-Branding Roadmap of Co-branding Positions and Strategies, the Journal of American Academy of Business, Cambridge, Vol. 15, Num. 1, September 2009 The delicate balance of managing brand equity across multiple product lines and brands vs. attaining a unified global brand capable of serving as a scalable platform for future growth is explored in Roadmap of Co-branding Positions and Strategies (Chang, 2009). Illustrating how co-branding strategies need to be applied in the
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