BM - Brand Growth and Reposition

Explain the first way to grow…

Companies should try to better their relationship with their existing customers because obtaining new ones is costly

What are the ways to grow through existing customers?

a. Increasing volume per capita: higher volume use.. .barilla making new sauces so people need to eat pasta more, making new ocasions to eat pasta at or mroe recipes

b. adressing barriers to consumption: diet coke, coke without caffeine

c. trading up: “pugraded service or product” bigger sizes of thing or special editions like carrot cake oreos

d. new uses for things: baking soda more than baking, sunscreen more than beach

What are the other ways to grow?

2. line extensions: think iphone

3. brand extensions: gucci going into perfume not just clothes

4. internationalization: coke making new flavor for middle east consumer

5. innovation: bringing value to the market… incremental or radical

6. brand repositioning

explain the ways for line extensions to occur

1. formats and sizes (cars and soft drinks)

2. tastes and flavors (chips/candy)

3. type of ingredients (apparel. motors, food)

4. physical forms (gel vs pods vs powder soap)

5. product add ons under the same name (toilety line)

6. speficic application (shampoo for dry scalp vs oily)

innovation is a source of growth and competitiveness for a company …

In short: innovation keeps brands alive and competitive, and it can range from small improvements to big, game-changing ideas across different markets.

change is the norm so there’s always room to look at conusmer ingishts and innovate

Low involvement products typically

does not face technoglical breaskthroughs

explain why even incremental innovation is good for brand image

• good for brand image because it shows the brand is constantly trying to improve and react to consumer changing needs

in mature markets, the goal isnt to increase the market in volume but instead in value. brands goal is to look for value innovatins…. which are…

an unprecedented bundle of attributes that shift the preference function of consumers

why is doing brand extensions good?

copmanies use the name of an existing brand that are already stronger and have more visibilty and trust rather than starting brand new

what is the definition of brand repositioning. why is it done?

when a company changes a brand’s status in the marketplace.

its done to keep up with consumers’ needs and wants

what typically comes with brnd repsotioning?

changes in the marketing mix and changes to what customers assocaite with the and expect from the brand

give two examples of repositioning

1. gucci repositioning toward millentails that are digital natives

2. Abercrombie and fittch