- Survey your brand equity
- Set your goals
- Review your resources
- Look into wider consumer or market trends
- Research your competitors
- Engage with your existing customers
- Narrow down your options
- Get to know your new target market
Why Coca-Cola still dominates the beverage market
Coke is sold in more than 200 countries and territories worldwide. This diverse representation helps the company in steady growth.
Coke also has one of the world’s largest distribution networks and derives more than 40% of sales from developing and emerging economy with the growing middle class.
Why does Coca-Cola have strong brand equity
Brand equity of Coca Cola and its value is driven from the willingness of the customers for spending premium for it and refusal for shifting on competitor’s products like Pepsi.
How do consumers evaluate brand extensions
1. Consumers’ evaluations of brand extensions are determined primarily by the quality of the parent brand and the fit between the original and extension product categories.
Why do brand extensions fail
When brand extensions fail, it’s usually because companies try to borrow or milk their brands, and/or they simply do not pay enough attention to creating sufficient new consumer benefits.
What is brand extension decision
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.
The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity.
How beneficial was the launch of New Coke for Coca-Cola
The company reintroduced the original Coke formula within three months, rebranded “Coca-Cola Classic”, resulting in a significant sales boost.
This led to speculation that the New Coke formula was a ploy to stimulate sales of the original Coca-Cola, which the company has denied.
Are brand extensions an important brand growth strategy
A robust brand extension strategy is essential to prosper and maintain relevance in today’s hyper-competitive marketplace.
In some ways, brand extension represents the most efficient and logical way to achieve profitable brand growth, yet many companies struggle with how far to stretch.
What is Coca-Cola’s future marketing plan
The company’s 2021 innovation pipeline will include a 40% increase in projects, managed with an equally disciplined approach.
“Innovation must be more than flavor extensions,” Quincey said. “It can also be tech-driven, or include enhancing our packaging or formulas, but in the end it must be consumer-centric.”
What is the secret behind Coca-Cola marketing strategy
The commercial itself closely follows Coca-Cola’s primary principles in their advertising rather than attempting to sell it as a drink.
Coke focuses on selling an abstract positive concept, such as happiness, family, and sharing.
What is the difference between brand extension and brand stretching
Brand stretching involves introducing a new product into the market that is similar to an existing product in terms of functional benefits, but different in terms of price or branding.
Brand extension involves introducing a new product that has little or no relationship with the original brand and its customers.
What is the biggest marketing blunder of Coca-Cola
At the height of the war, Coca-Cola made what became known as one of the biggest marketing mistakes to take place.
The Pepsi Challenge, introduced in 1975, invited consumers to conduct blind taste tests between Coke and Pepsi.
What are the components of brand extension
A comprehensive literature review identifies six elements which are crucial to the success of brand extension.
These elements are Parent Brand Image, Parent Brand Fit, Parent Brand Strength, Marketing Support, Quality of Parent Brand and Parent Brand Consumer Experience.
What are the functions of brand extension
Brand extension is a strategy where a company creates a new product category under its well-known brand name.
It helps launch new products easily, obtain higher profit, reduce costs necessary to launch a new business, and meet customers’ needs and wants.
What is vertical brand extension
Vertical extensions: Vertical extension means introducing related brand in the same product category in either of two directions, i.e., upscale extension, where a new product with higher price and quality characteristics, than the original, is introduced; or downscale extension, where a new product with lower quality
What are the advantages of brand extension
Advantages of Brand Extension It increases brand image. The risk perceived by the customers reduces.
The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.
What is brand extension strategy examples
Definition brand extension strategy Brand extension strategy refers to the use of an established company’s name or brand to enter a new product class or industry.
Perhaps one of the most well-known giants of brand extension is Amazon. In 1995, Amazon began as an online bookseller.
How does Coca-Cola respond to changes in the market
By providing more choice, we have reactivated our connection with consumers,” Avellar said. Coca-Cola’s transition into a “total beverage company” is in part a response to consumer demand in an effort to remain relevant by providing people with the drinks they want.
What is an example of brand extension strategy
Definition brand extension strategy Perhaps one of the most well-known giants of brand extension is Amazon.
In 1995, Amazon began as an online bookseller. Since then, the brand has extended into everything from music, grocery delivery, consumer goods, movies and more.
What is an example of a failed brand extension
Colgate kitchen entrees. The idea was that after a delightful Colgate meal, you could then brush your teeth afterwards using, yes, Colgate toothpaste.
This brand extension was such a disaster that it never left US soil. The problem Colgate is not a brand name one would associate with a hot meal after work.
Why is brand extension a popular marketing strategy
Why Is Brand Extension a Popular Marketing Strategy? According to Nielsen, brand extension (or brand stretching) has a likelihood of success five times that of new product launches.
Extensions also leverage equity, increase efficiency, and enjoy faster consumer adoption.
Why do companies use product line extensions
Brand Extensions Increase Customer Loyalty By choosing to offer additional offerings in the same category, you’ll give customers more opportunities to purchase your products as opposed to buying from one of your competitors.
What are some examples of product extensions?
- Colgate with Hemp Seed Oil
- Coca-Cola Cinnamon
- Lux White Impress
- Honda Civic Si
- Hellmann’s Mayonaise with Olive Oil
- Mr
- Nissan Leaf
What is product line extension marketing
Product line extension (also known as expansion) involves a business adding a new product to one of its pre-existing product lines.
What possible mistakes can a company make when pursuing a brand extension?
- Not defining your brand strategy first
- Starting with a cheap brand identity
- Failing to differentiate your brand
- Not connecting with the right audience
- Stretching your brand to far
- Not providing great brand experience
What are the various factors influencing decision for brand extension
Analysis of the factors influencing brand extension may require studying five factors such as parent brand evaluation, difference in perceived quality of brand portfolio, perceived fit, consumer’s behavioral intentions and consumer’s attitude towards brand extension.
What is brand extension trap
This tactic is undertaken due to the brand loyalty and brand awareness associated with an existing product.
Consumers are more likely to buy a new product that has a reputable brand name on it than buy a similar product from a competitor without a reputable brand name.
What has contributed to the success of Diet Coke
Diet Coke successfully targeted Millennials, from design, to flavors, to advertising style and imagery.
Developing an accurate understanding of Millennials, the audience identified as key in rebuilding the brand, has been key to Diet Coke’s recent success.
Which of the following are disadvantages of brand extensions?
- Extending the brand name too far may lead to a loss of reliability, especially if the brand extension happens in an unrelated market
- If the new product is not that great, it may spell trouble for the core brand’s image
What companies use extension strategies?
- Apple: from personal computers into MP3 players
- Callaway: from golf clubs into footwear, apparel and golf accessories
- Dyson: from vacuum cleaners into desk lamps
- Starbucks: coffee-based beverages into energy drinks
- Mailchimp: email marketing to Facebook ads
Citations
https://www.campaignlive.co.uk/article/128-years-coca-cola-its-brand-extensions/1298515
https://mailchimp.com/courier/article/building-your-product-portfolio/
https://extensionaus.com.au/extension-practice/1852-2/
