Keele Management School
BRANDS & BRANDING
Module Leader: Chris Vaughan-Jones
Successful brands are the most vital assets of a company. Peculiarly, those assets stand for the knowledge made in the minds of consumers for this reason all of the marketing programs executed for those brands. (Kotler, 1991) This essay compares the similarity and differentness in the brand extension, brand community as well as packaging that was implemented by the two individually positioned brand Nestle Chocapic ® and Kellogg's® Rice Krispies® of the ready-to-eat cereal industry, which successfully portray breakfast cereals as suitable for children and positioning the product as a health boost. Meanwhile, discuss the benefit that they used those theories to maintain their market-leading position.
The new products launching is the momentous reason that the company hold their marketing position. In general, brand extensions draw much attention in academic research, as a result of line extensions and franchise extensions are concerned to be more cost-effective ways to introduce new products and have a higher success rate compared with creating completely new brand names.( Elliott and Percy 2007)
The brand extension is a key driver of the brand strategy for both cereal brands. Line extensions can benefit the parent company by expanding market coverage, such as by offering a product benefit whose absence might have prevented consumers from trying the brand.( Keller 2008). For example, the line extension that Nestle Chocapic ® introduction is Chocapic Duo®. This new tast was able to attract consumers who prefer much higher levels of sugar and chocolate enhance market coverage by bring more children into the brand franchise. Things happen in the complete positive direction with Kellogg. Kellogg's® Rice Krispies ® cereal is the parent brand for the Rice Krispies categorty. Kellogg's®