1. Executive Summary This report critically analyze the concept of brand extension and how customers perceive brand extension. This study also lay emphases on how powerful branding is and the need of brand extension as a useful tool to the marketer for achieving competitive edge in the market place. This report highlights more on the brand extensions applications: the two kinds of extensions that is vertical and horizontal brand extension. In addition, the report also deliberates as well as evaluate the categories and line of brand extension.
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.
This curve indicates the per unit output at each level of the variable input. The average product curve is one of three related curves used in the analysis of the short-run production of a firm. The other two are total product curve and marginal product curve. The average product typically varies as more of the input is employed, so this relationship can also be expressed as a chart or as a graph. A typical average physical product curve is shown (APP).
After these companies go about developing products, which may be product modification or it may be a completely new product. Product offerings are increasing every year as consumers are looking for more and more variety of products. Companies which are unable to churn out new products fall back on competition and suffer the consequences. Companies face danger not just from competitors but consumer needs, technology, and product life cycle. New product development has its share of challenges.
Audi needed fifteen years to recover while it was manufacturing good cars. Types of Brand Extensions Product form extension is when a brand is launched in a different form, it is line extension. If a different product form is within an entirely different product category, it will be a brand extension. For example, Amul milk extended to Amul condensed milk and Real juices extended to real juice concentrate. Companion product extension is extensions in the form of companion products are very popular.
Depending on product market and situations corporations are using different extension method either it be horizontal or vertical brand extension . Brand extension should be based on compatibility between parent and extended brand . If the extended brand matched with the parent brand then it 's acceptability or progress may be high .
Brand extension refers to marketing strategy in which same name of a brand is used in a different product category. In short it is similar to brand stretching. Brand extension helps in evaluating opportunities related top product category, it identifies resource need and it helps organization to increase brand equity. brand extension is successful when customers value and goals match with that of core business and when these goals and value are personified in a brand then the brand is more acceptable by the customers in a business. brand extension is done for some purpose like for growth and development, trend in industry ,Economic Benefits and also for creating competition.
The Effects of Brand Extension toward the Brand Image Loh Jia Cong. Student Multimedia University Introduction Generally, brand extension is a common way that a company use to launching a new product with use same or existing brand name for that new product in a different 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.
Chapter 2 Literature Review The literature review will provide insight on the 4Ps of marketing mix and brand theories on smartphones. Marketing Mix Marketing mix consists of four factors namely product, price, place and promotion. The marketing mix is the set of marketing tools a firm utilizes to pursue its marketing objectives in the target market (Borden, 1984 and Goi, 2005). When a store markets its products, it needs to create a successful mix of the right product, sold at the right price, in the right place and using the most suitable promotion (Mohammad et al, 2012). Kotler and Armstrong (2006) are of the view that marketing mix is designed to influence consumer decision-making and lead to profitable exchanges Chapter 2 Literature
Method in calculating Average Product Average product is the unit production of a particular company. Theoretically, it is calculated by using the formula: total product divided by the input of the variable labour. According to the analysis of short