• 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

    This has helped project entertaining and effectual advertisements for its diversified audience, thereby helping them increase brand equity (Diversity in Business - Toyota, 2005). This diversity has been moved forward to the company's website and it offers a functional Spanish version to its consumers in Spain.

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

    How can a firm anticipate a competitor's reactions?? One way is to assume that the competitor reacts in a set way to price changes. The other is to assume that the competitor treats each price change as a fresh challenge and reacts according to self-interest at the time.

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

    able to really appreciate the differences between brands, thus, leaving them to base opinions about the quality on more intuitive aspects (Alba & Hutchison, 1987). Brand Differentiation In a market where plenty of products are available, brand names themselves are the only source of differentiation for providers of products and services (De Chernatony, 2001).

  2. Influence of the brand uopn the consumer

    Further studies, however, published figures suggesting that brand loyalty for many consumers goods held steady or actually increased a little from 1975 to 1983. Concern is again growing that store and brand loyalty are eroding, that images and reputations will decay in the face of price discounting by major retail

  1. Managing the international brand

    are they using it to solve and what other products or services is related to, is crucial to brand planning. Such understanding may be based at least partly on qualitative data, and should always be founded on personal experience. Even the most senior managers ought to be exposed to real consumers regularly.

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

    The Brand Experience A brand represents an experience for consumers and, as such, becomes less associated with an individual product or service than the brand values. company's manufacturing competencies become less relevant than its ability to understand consumers and to manage a brand.

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

    carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place. Now look at the 4Ps in more detail. Price No matter how good the product is, it is unlikely to succeed unless the price is right.

  2. Pepe Jeans - Brand Management

    The products offered are contemporary and innovative and the impression it leaves, is never missed. The brand image is not a thought on its own, it is engraved in the consumer mind by the marketers through the use of various marketing tools.

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