The Effects of Brand Extension toward the Brand Image Loh Jia Cong. Student Multimedia University Introduction Aaker and Keller (1990) define it as, “brand extension occurs when a firm uses an established brand name to introduce a new product into a new product category”. The existing brand name is also called parent brand. Brand extension also representative a company utilizes their brand name to a new product and leverage equity for expansion. Every company hopes to utilize brand extension leverage with its competitors and increase the sales or profits with the new product they offer.
B. How firms can respond to the emergence of potentially disruptive technologies and innovations. The term, disruptive innovation was coined by Clayton Christensen.16 In his book, The innovator’s dilemma, 17 he describes two types of innovations: sustaining and disruptive innovation. According to him, sustaining innovations are those that improve product performance in ways that the mainstream or high-end customers would normally value, while disruptive innovations have new features that generally target the low end, less profitable part of the market, or even create a market for new customers. Initially, they deliver worse product performance than the already established technologies based on what mainstream customers value, but usually catch
Thenceforward, whether an ability was proprietary and if it was common that 3rd parties could achieve the intended scale. To define the appropriate proprietary value for Saudi Aramco, there is a need to find out if each capability that generated more value than the company’s rivals could be realized. Furthermore, contingent upon the company, there is a potential of experiencing a significant level of strategic damage if others could imitate that particular proprietary. Saudi Aramco has to identify capabilities in which outside suppliers were advanced and well-established across their industry, or even across several industries, because these common business processes or capabilities could pose an immediate and/or future threat to cost position. The below figure of sourcing opportunity map, can help to allocate proprietary
Most importantly, Toyota has been extremely fruitful in separating on the premise of predominant configuration and quality. This has prompted Toyota having the capacity to make a brand picture that is extremely solid and one that infers quality, enduring autos when a potential client sees it. The quality of Toyota's image picture has been seen as of late with the reviews and issues Toyota confronted in managing these reviews. Toyota had the capacity survive these issues on the grounds that they had such a long and demonstrated reputation of value and unrivalled. Another, zone that Toyota separates is in innovation.
Shell Global Solutions provides support and develop to its customers through the licensing of cutting-edge technologies. With a license policy by Shell Global Solutions, customers can receive a special technical support or advice to improve the operational performance of their business. Factors can be influenced internationalization process Shell. A company is a, "the most suitable mode for my development" as a question to arrive when he decided to expand foreign market. You must use the best mode of export, licensing, franchising, turnkey projects, joint ventures, and many development strategies, including wholly owned subsidiaries.
In my opinion, Wynn Resorts is not utilizing the three horizons adequately. For horizon 1, I would prescribe an expansion of current activities that start at the corporate level. Streamlining protracted procedures concentrate more on hazard administration and decrease the requirement for specific positions. This will moderate the blockages, deliver more compelling correspondence and create results. In this way, it will empower the association to plan and conjecture changes to the business and clients successfully.
Brand extension is a strategy of marketing in which a firm promoting a product with an established image uses the same brand name in a different product category. The new product is called a spin-off. Conveying brand image to target market is an important promotional activity (Park,1986) . In the same way Mc Vitie will extend its product and use this strategy to increase leverage the net worth and sustainability from the well established name. Marketing mix: Marketing mix consists of studying the product, price, place and promotion of a company.
(2006) also have established the effects of the marketing mix on brand equity. They provided evidence that companies keep on investing in the strategy of product, price, place and promotion, company’s brand awareness and a positive brand image would be created. In this way, brand equity with the supplier’s equity and brand fidelity with the customer fidelity lead forwards revenue growth. Thus, Luk Fook Jewellery is necessarily to continuous drastically meliorating their marketing mix for prolonged competiveness in the marketplace. Company background Luk Fook Jewellery was founded in 1991, which
Branding is more than a name, term, design and symbol. A brand is created and influenced by people, perception, words, messages, visuals, culture, style, opinions, news media and especially social media. Earning and maintaining a good reputation is challenges for new and established businesses. When bad publicity emerges, businesses could be portrayed as irresponsible, dishonest or appear to be only looking out for their best interests. Although it is possible to make a good name for your business on a local or national scale, doing so can be an uphill battle, especially in the face of bad publicity.
CHAPTER ONE: INTRODUCTION Background of Study Brand equity is a term to describe a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. In recent years, it has been noted that noticeable subject matter has been a unification of the investigation flow which is associates brand equity with customers, and loyalty in the literature of marketing. Moreover, altogether memory-based relations to specific trade name are concerned for brand equity which is based on consumers and establishes in the consumers mentality. Usually, the current retail environment was more promotion-driven.