Brand Management

When launching a sassy product, it is better to pursue a shop citation schema, than to develop a invigorated pit. As evidence suggests, this statement has practically been proven to be correct time and again. Advantages of launching a spic-and-span dirt In any circumstances, if the new chumps fail, it cannot damage the otherwise(a) brand of the company. Consumers hinder 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 happy because it was associated with IBM. Disadvantages of launching a new brand Launching a new brand involves a large amount of trade expenditure on Consumer awargonness and other promotions. For some large 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 consumers, to avoid creating a new brand. E.g. IBM does not simply manufacture computers, it has branched into relating palm of computer software and Networks. Brand extension is often compared with rakehell extension. Line extension is having an addition to an vivacious product line. For e.g. Gillette razors started to relieve oneself Gillette groom 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 u! nder 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 disallow effect, not solo on the new product however also on the existing brand...If you want to get a full essay, lodge it on our website: OrderCustomPaper.com

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