Knowing the current performance allows companies to assess the strategic approach to the management of the brand. These decisions could mean that the brand awareness needs to be raised, the brand could need rejuvenation or brand might have a strong foothold in the market which could mean superior financial bid. Kapferer (2012) writes that when brands are being bought for over and above the physical assets of the company, the goodwill of this amount is awarded to the intangibility of the brand and its future growth. Hence, brand performance has a link to the financial performance although this might not be physically calculated on the balance
Damage to one will affect the other negatively as well. Therefore, when dealing with the consumers during crisis, companies may opt to focus on leveraging their brand equity , especially if the crisis at hand is directly linked to the branding. In the case of Starbucks, their messaging to their customers might have not only stated their stance on the issue to clarify any doubts and misunderstandings, but to also draw links to their brand values to reinforce their stance to their target audience. However, not all crises are negatively link to the brand in the consumers’ minds. If we take a look at the Johnson & Johnson Tylenol case, despite causing their shares to drop to 0%, Johnson & Johnson still went ahead with their product recall.
and Sattler, H., 2006) Mentions that these evaluations by consumers especially on their perceptions of quality of the product will be transferred if consumers recognize that the new product extension fits the mother brand. According to (http://www.brandextension.org/benefits.html) brand extensions enable companies or organisations to capitalize on the “previously paid for” brand building activities and equity of its current brand names. And they further explains that brand extensions are cost saving strategies for companies, also with the added benefit of additional sales derived from sales growth of the parent brand after the successful launch of the new brand extension. . 3.4.1 Benefits of brand extension According to (K. Mundt, J. Dawes, and B.
It will give an edge to Coca cola over Dr. Pepper and Pepsi Co., and will also help in regaining the market leadership. Through sponsorship of football leagues, very popular in Europe Coca Cola will rebuild its diluted brand equity. The strategy of focusing on core business and outsourcing the downstream activities in te value chain is good and successful, the company must divest from bottling plants and invest that amount in new product development. Given the increased health consciousness and changing lifestyle, its important for the company to focus on bottled water market, especially the new lucrative segment of sweetened bottled water in which Pepsi Co. is taking the lead. In emerging economies like India, and Latin America and also China, Coca Cola should adopt a market penetration strategy with its core products of Coca Cola, Diek Coke, Fanta, and Sprite, and focus on gaining the market share as huge potential in carbonated beverage industry lies in these
In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company. Apple Inc. strives to limit the time between ordering for the goods and receipt of the same. Normally, long distribution channels do not only influence the pricing of the products, but also the time when the consumers receive the product. Apple Inc. commands a great power in the market because it has differentiated
Like Oppo, Vivo, and Xiaomi, Lenovo can use the Zuk brand to target the low-end users and generate a significant jump on the sales units. With the cross-product synergies, the cost can reduce by relying on the same R&D team for PC and smartphone market as well as integrating the deals of the vendors of raw materials. In addition, with Lenovo’s worldwide expanding, the advantage of the economy of scale helped to lower the manufacturing cost and time and enable more manufacturing efficiency. These brought strong competitive advantages in the low-end market by pricing the low price among the market, so Lenovo can provide the relatively cheap and fair quality products to win larger market shares in a short
They recognized the relevance as it is an opportunity to benefit from the parent brand via their brand image and brand recognition to enter new markets in a new product category (Aaker & Keller, 1990). While there are few contradictory studies (Trout and Ries, 1981, 2000), many studies reveal some major benefits of brand extension strategies. Entering a new product category with a product which is served by the parent brand require lower introduction costs, for instance price promotions, advertising and trade agreements (Collins-Dodd and Louviere, 1991; Tauber, 1981, 1988). Besides, its benefits are minimizing the entry barrier, reducing the risks and maximizing the advantage of brand equity (Van Riel, Lemmink & Ouwersloot, 2001). With those major benefits in regard, we can state that brand extension is a relevant topic of
Although these barriers can prove to be an advantage for the already existing businesses, it makes it more difficult for a business to indulge in diversification. However, Mr. Price Sport has been in the market for quite some time and has developed a well known brand. There is a new entrant in the market, Cross Trainer, but it may take some time before Mr. Price Sport can be overtaken by the new entrant. Mr Price Sport does not have to worry about the new entrants as they already have developed a brand customer loyalty. Mr Price Sport also offers good quality products at affordable rates for their
Disruption is effectively a more violent form of competitive innovation. What Christiansen called ‘new market disruption’ occurs when a new product meets a new customer need – or even better – creates customer desire – like Apple did with the iPod and iPhone. What real disruption does it forces consumers to ask the most primal questions about market places. Planning for digital disruption • Adopting digitally disruptive technologies and processes should be a calculated move after careful and detailed analysis of a company’s risk appetite and its capacity for continual change. • Digital disruption is about creating better brands, resulting in better dialogue with its customers and getting its brands to the market in a faster and more efficient way.
8.2 Market Expansion Growth Opportunity The brand would accommodate customers outside the initial target location once sales and profit has stabilized and there are enough staff that can handle multiple events at the same time. The brand will also improve their technology for internet advertising and making its services available online. The brand would start new services, such as corporate events, and products, like an idea box which would contain a starter kit for clients who wouldn’t want to pay much more for an events planner. 8.3 Retail Format Growth Opportunity Retail Format Growth Opportunity Through time, the business would be testing different combinations of marketing mix to be able to see which one is better in serving the same target market. Hence, the business would be able to explore more strategies in positioning the brand in the minds of their clients.