• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What Are The Advantages and Disadvantages of Brand Stretching?

Extracts from this document...

Introduction

What Are The Advantages and Disadvantages of Brand Stretching? In addressing the above question it is first important to establish what a brand is and the implications this gives to both existing products and products that may be laundered using existing titles. This essay will examine articles written concerning the stretching of brands and identify which brands have been successful and unsuccessful in this pursuit and why. It will also examine the financial motives for companies to penetrate existing markets using already established new products or services has lead to prosperity or disaster. The American Marketing Association refer to branding as the "use of a name, a term, a symbol or a design to identify the goods or services of one seller and to distinguish them from those of the competition " (WK4 Lecture). This use of branding is said to create an identity of the product that quickly allows consumers to identify a desired item and also gives a guarantee of quality of the product. Branding is also seen as being mutually beneficial to Manufacturers as protection is offered from competition, it allows maintenance of a premium price, promotion is made more efficient because the brand helps to evoke an image, and it also helps in the introduction of new products with the same brand name (WK4 Lectures). ...read more.

Middle

It may further be considered that the use of a brand name on its own may persuade people to try new products, such as the Mars Ice Cream Bar. This may be considered in particular when one looks at the larger supermarket chains such as Sainsbury's. Over the last two decades Sainsbury's have produced own brands to compete with nearly every product that they stock. Due to the image conveyed by Sainsbury's that implies (or in fact, guarantees) quality, it has been possible for them to penetrate nearly all areas of the food market successfully. This success may be attributed to the analysis of what a product is as defined by Nickels (1978). Nickels sees a product as "an intangible sense of value that a consumer perceives when he or she weighs the benefits and drawbacks of making an exchange". It may therefore be viewed that the success of Sainsbury's is mainly due to the consumer seeing little difference in quality between branded goods and Sainsbury's own label goods, with Sainsbury's holding the advantage when price is considered. This point is reiterated by Caulkin (1987), who states that "growing public perception that the best own-brands are no longer cheap alternatives to the real thing, but comparable in quality as well as price with the main manufacturers lines". The phenomenon of brand-stretching has not been unique to the manufacturing and retail sectors, but has in fact been used by those in the sector of public service. ...read more.

Conclusion

In their book 'Bottom Up Marketing' they argue that by companies widening their products, (even those who have been successful) they have hurt their 'brand equity'. This they attribute to the nature of communication in Western Society being so large that they feel that, "...you are lucky if your brand can mean one thing. Almost never can it mean two or three things", (10/90 p.106). Thus confusing consumers of an established image of original brands. From the above discussion it can be seen that brand-stretching can be a good way of penetrating new markets. by good use of an established brand name considerable savings can be made in the field of promotion, as there is already an existence of brand awareness so promotion can more easily be centred around the product itself, with the added bonus that consumers may feel more inclined to give an initial trail of products displaying brand names they already know, ( such as the Mars Ice Cream Bar). This too is now the case with established own-brand labels, such as Sainsbury's which offer marginally cheaper prices of products now perceived to be of equal quality to that of established brands. However inappropriate stretches, or those which do not offer good quality products have a danger of undermining the credibility of already established brands. Although from the research this sort of practice on the whole seems to lead to failure of the stretched brand, generally leaving the original in tact. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Toyota Brand management

    & Dunn and through the Toyota-United Pro Cycling Team (America Supports You - Toyota, 2007). Toyota has also partnered with some social organizations such as the Los Angeles (L.A.) Urban League and the United Negro College Fund (UNCF) to develop a positive brand image across the globe.

  2. Pepe Jeans - Brand Management

    45 Issue 1 33. Wood L.M. and Pierson B. J. (2006) 'The brand description of Sainsbury's and Aldi: price and quality positioning', International Journal of Retail & Distribution Volume: 34 Issue: 12 Page: 904 - 917 34. Wood, L. (2000) 'Brands and brand equity: Definition and management', Management Decision, Vol.

  1. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    Stage 5: Effective Marketing Company Only when all the employees realize that their jobs are created by customers does the company become an effective marketer. Stage 6: Process And Outcome Based Company Many companies are now refocusing their structure on key processes rather than departments.

  2. Managing the international brand

    Name The goal is to find a name that expresses the brand essence and is memorable and represents an advantage for the product. A further challenge is to find a name that is narrow enough to be meaningful without limiting later extension.

  1. Branding. This dissertation aims to link the brand literature with the three search, experience ...

    However, Keller (1993) contrastingly, described it as an individual's ability to 'retrieve information from the mind'. Thus, relating more to experience and credence rather than only physical appearance as advocated by Rossiter & Percy (1987). However, previous experiences with products are sure to affect recognition and eventually the search attribute (Srinivasan & Till, 2002).

  2. What is a brand ? Why we need branding ?

    Are brands dying and brand building is dead ? or is these an indication of a new era of brand building & managing ? and the turnaround in brand fortunes can be explained by market changes(ie: better informed & educated customers, the speedy response of imitators and increase retailing power.)

  1. TESCO vs. SAINSBURY: THE SUPERMARKET WAR

    2 Stakeholders: In the supermarket industry, the stakeholders include customer, employee, supplier, competitors and government, etc. These key stakeholders can be mapped based on their different level of interests and power over the industry. The position of each stakeholder is somewhat variable.

  2. Discuss how the new or existing product/services enables the business to meet the need ...

    Baked beans is a nutritional meal and is eaten by all kinds of people. The baked beans market is very competitive because there are many companies competing for the same market. Although Heinz doesn't have retail outlets it still has the most popular brand of baked beans.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work