Q1.Select any brand and evaluate brand extension strategy followed by the company
Ans: Brand Extension can be defined as the usage of an established brand name in new product categories. In other words, it is a marketing strategy in which a firm that markets a product with a well-developed image uses the same brand name but for a new product category. This new category to which the brand is extended can be related or unrelated to the existing product categories. Brands use this as a strategy to increase and leverage equity. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. A very successful example of Brand Extension Strategy is that of Horlicks, a brand that started primarily as a health drink and remained so for a long period, today has extended into varied food categories – biscuits, noodles, snacks, breakfast option and even flavoured milk. Besides, the health drink itself has so many multiple variants in different flavours, catering to different consumer segments.However, what binds them together as a unique position is they all are harbingers of health, a word that has become synonymous with Horlicks. GSKCH (GlaxoSmithKline Consumer Healthcare) was the company that launched this brand which has its dates of origin traced back to late 19th century when it was primarily considered as a diet supplement with basic ingredients like malt extract and milk powders. It came to India with British Army, end of World War I which saw Indian soldiers of...
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