Branding in this case means, how does the hotel markets itself to the public and attract guest to stay with them. Branding of a hotel is important as that’s what affects the decision making of a guest. When choosing a hotel to stay at, guest normally will go through the hotel’s website to look at how the hotel brand itself before deciding if they want to stay there. Hotels have always been recognized by its name and, to this extent, have always held one of the features commonly associated with the branded product. Key word: Branding, guest satisfaction Brand image is the key driver of brand equity, which in other words it refers to a guest general perception
Brand extension could be explained as a new addition to an existing product or service which is different or enhanced to appeal to a new set of clientele. An example in hotel industry would be the introduction of Holiday Inn Express as an option for those looking for a no-frills room with basic amenities. Successful brands in the Product life cycle would like to grow and would try to diversify by creating newer upgrades to the current line of by capitalizing on existing brand image. Keller (2012) articulates the need for such strategy as way of growing the business as shown in Ansoff’s Growth Matrix (refer Fig. 2).
Every company hopes to utilize brand extension leverage with its competitors and increase the sales or profits with the new product they offer. The purpose is to attract potential customers and retain loyal customers. When conduct brand extension, company should use a well-known brand
On the basis of previous works in the literature, we generated a pool of sample measures of four brand equity dimensions & overall brand equity. The brand awareness scale intended to measure the strength of the brand in customer’s memory as reflected by the customer’s ability to identify various brand elements. To overcome the drawbacks of previous scales, the items measuring brand personality (Hananto,2006) which is a sub-dimension of brand associations, were incorporated. The scales of perceived quality measured customers’ subjective judgment about a brand's superiority. In the current study, the brand loyalty scale was designed to measure the overall attitudinal extent of specific brand loyalty than to measure actual brand loyal behavior such as purchase.
This statistic illustrates the challenges companies face when trying to grow in competitive environments. Achieving even 1%annual growth requires increasing sales to customers, both existing and new, by 14%. Reducing customers’ loss can dramatically improve business and brand loyalty which leads to consistent and even greater sales since the same brand is purchased repeatedly (Giddens, 2010) . 3.6.2 Premium Pricing Ability Consumers are fewer prices sensitive when increasing the brand loyalty. Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide.
Every company hopes to utilize brand extension leverage with its competitors and increase the sales or profits with the new product they offer. The purpose is to attract potential customers and retain loyal customers. When conduct brand extension, company should use a well-known
If customers are loyal to brands then company can increase its productivity by offering brand’s further extension without the fear of failure (Reichheld and Sasser, 1990).The success of a firm depends mainly on its capability to attract consumers towards its brands. In particular, it is critical for the continued existence of a company to retain its current customers, and to make them loyal to the brand. To a large extent, the success of most businesses depends on their ability to create and maintain customer loyalty. In the first place, selling to brand loyal customers is far less costly than converting new customers. In addition, brand loyalty provides firms with great competitive weapons.
1.12. IMPORTANT FACTORS IN BUILDING BRAND VALUE Professor David Jobbar identified mainly seven factors in building successful brands. 1.12.1. Quality Quality is a vital ingredient of a good brand. Remember the “core benefits” – the things consumers expect.
Therefore, it is the same story with franchising as a model for entrepreneurial growth; there are various benefits from this process for both the franchisee and the franchisor. For instance, on the part of the franchisor these typically involve the capability to expand the business speedily and the increasing of expenses and perils across the system. On the other hand, for prospective franchisees the attractiveness of opening a franchise system involves primarily the opportunity to buy a business with a proven approach for fruitful operation. Studies reveal that the United States of America has traditionally been the world`s only biggest franchise market. However, it is should be noted that currently, franchising is being employed by companies as a strategy for growth in both developed and emerging markets.
Moreover, the parent brand loyalty, equity and personality also play a huge part in the brand extension process. Ranjabraien et al., (2013) researched analyzing brand extension strategies in Service Companies indicate that the probability of success and acceptance of brand extension in order to have a competitive advantage are strongly influenced by the Perceived product quality and the perceived fit between the extended product and other products of the brand and consumer 's attitude to extension. If the extension is according to the perceived fit the brand extension strategies can be a success. Dr. Jayakrishnan et al. (2015) concluded that a recognized brand name could provide competitive advantage and hence, is considered as one of the firm’s most valuable assets.