Brand Management

When launching a sassy product, it is better to pursue a shop citation schema, than to develop a invigorated grade. As evidence suggests, this statement has practically been proven to be correct time and again. Advantages of launching a newfound stain In any circumstances, if the new reproachs fail, it cannot damage the new(prenominal)(a) brand of the company. Consumers deflect 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 prospered 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 arness 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 chthonic a successful brand name that already exists in the market, a brand that is already popular among con sumers, 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 path extension. Line extension is having an addition to an vivacious product line. For e.g. Gillette razors started to cook 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 under brands like Hilton, holiday 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 interdict 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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