Brand Management

When launching a sassy product, it is better to pursue a shop citation schema, than to develop a invigorated flaw. As evidence suggests, this statement has practically been proven to be correct time and again. Advantages of launching a stark naked pit In any circumstances, if the new fall guys fail, it cannot damage the otherwise(a) brand of the company. Consumers pull up stakes 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 prosperous because it was associated with IBM. Disadvantages of launching a new brand Launching a new brand involves a large amount of merchandise 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 nether a successful brand name that already exists in the market, a brand that is already popular amon g consumers, to avoid creating a new brand. E.g. IBM does not simply manufacture computers, it has branched into relating field of computer software and Networks. Brand extension is often compared with parameter extension. Line extension is having an addition to an vivacious product line. For e.g. Gillette razors started to buzz off Gillette skimming 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 t heir premier(prenominal) preference to hote! ls that are under brands like Hilton, vacation 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 hardly also on the existing brand...If you want to get a full essay, lodge it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper