preseve the luxury or extend the brand
TRANSCRIPT
Stakeholders
Gaspard de Sauveterre - The owner of Chateau de Vallois - Famous wine producing estate
Claire de Valhubert – Gaspard’s granddaughter
Francois de Sauveterre – Gaspard’s son
Jean Paul Oudineaux – Gaspard’s estate manager
Negotiants – Merchants who purchase the wine and aid in distribution
• Chateau de Vallois produces two types of wine
• Sells to distributors and importers and not directly to consumers to keep their wine rare and vintage
Claire wants to enter the affordable luxury market selling directly to consumers to open a new customer base - Extend the brand
Reasons for Extending the Brand
Claire noted that younger wine enthusiasts were being priced out of high end French wines
Claire wanted to capitalize on her vintage wine brand by targeting young consumers
Reasons for Preserving the Brand
Additional costs incurred on low-priced wine in marketing and distribution
New product might result in dilution of original brand
Case Study - Horlicks
First invented to substitute milk as baby food
It’s almost a 137 year old brand
From nutritional drink it positioned itself as “pleasurable nourishment” by launching different exciting flavours
Identified with the key benefit and value proposition of their product and then executed their marketing campaigns – “Taller, Stronger, Sharper”
campaign, “Epang Opang Japang”, “Badlo Apne Bachpan ka Size”
Case Study - PONDS
Communicate message of ‘soft and caring’ beauty products through their marketing campaigns like ‘Googly Woogly Woosh’
Consumers viewed pond’s as a soft and skin friendly beauty product
Toothpaste creates the image of a product that is used to fight germs and associate medicinal benefit with it
Functional benefit of both the brands didn’t remain the same. Beauty cream/face wash is for external use and it’s major attribute is fragrance. While major attribute of toothpaste is taste
Conclusion
• Brand Extension has strategic implication on brands sales curve. It may result in enormous growth or put the asset of firm at risk
• Brand Extension should be consistent with the image of the core brand which has been already established in the consumer mind
• Market Research is of paramount significance for firms going for brand extension
• Adequate marketing support and efficiency of distribution channel is of key importance in the extension strategy