Brand Management

When launching a sassy product, it is better to pursue a shop citation schema, than to develop a invigorated taint. As evidence suggests, this statement has practically been proven to be correct time and again. Advantages of launching a unfermented soft touch In any circumstances, if the new commemorates fail, it cannot damage the separate(a) brand of the company. Consumers lug also have a positive effect of the other prosperous brand. For e.g. When IBM sold Lenovo to the Chinese government, the brand was as made because it was associated with IBM. Disadvantages of launching a new brand Launching a new brand involves a large amount of market expenditure on Consumer aw areness and other promotions. For some larger companies the cost may go into billions of dollars. Brand Extension is a strategy in which a company launches new products/designs chthonian a successful brand name that already exists in the market, a brand that is already popular among consum ers, to avoid creating a new brand. E.g. IBM does not simply manufacture computers, it has branched into relating handle of computer software and Networks. Brand extension is often compared with row extension. Line extension is having an addition to an vivacious product line. For e.g. Gillette razors started to make up Gillette grazing work out and a number of shaving products, whereas Brand Extension is when the Coca-Cola family launched Sprite.

Consumes often buy the new products when they are launched under an existing successful brand name. For e.g. When booking a hotel, customers give their premier( prenominal) preference to hotels that are un! der brands like Hilton, spend Inn, Radisson etc. To avoid the failure of brand extension, Companies follow a certain criteria. 1. Brand Fit The Company has to ensure that the new brands equalise under the current brand image. If the new brand does not fit with the existing brand, it could create a blackball effect, not solo on the new product except also on the existing brand...If you want to get a full essay, lodge it on our website: OrderCustomPaper.com

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