Cooperating and Communicating Across Cultures Essay Example for Free

Cooperating and Communicating Across Cultures Essay Case Study: Cooperating and Communicating Across Cultures The article Cooperation and communication between cultures, points out the key components in this case study. In the scenario each one of the team members had their own preconceived notions of the right way they should interact with the team in order for the team to move forward. The viewpoints of the team members, in my opinion, were influenced in part by their own cultures in addition to their own corporate backgrounds. Jim upon entering the team considered himself well prepared. He had knowledge of German culture and language, due to the fact that his wife was German and he visited Germany often, however, he was amazed at the detail in which the planning session went. Jim soon lost patience and interest, and the respect of his fellow team members because he was hardly paying attention anymore to the process. The German team used a three-day planning session as a way to lay the foundation for the structure of the entire product launch. Jim never really understands the importance of the initial meetings in the process because he unes out most of what was being said. Because of this, Jim never really understands the way the team is working in that the first analyze the problem, all possible eventualities, and addressing issues, then dividing the work and moving forward, with the team leader checking and controlling the outcome. The German team leader demonstrates that the team had worked together for at several years and so each knew the procedures very well but Jim clearly did not. An important organizational issue Jim exhibited is not showing respect for the Germans methods nd failing to align himself with the culture more rather than removing himself from the process and complaining. Fundamentally, Jim wanted to outline the problem, jump in, adjust and confer during the process but the Germans had different ideas, and a different culture for doing things. Each side saw the others method of operating as wrong, rather than as a possible new and different way to address a product launch. In the scenario concerning Klaus, Klaus had the same issues arriving in America and learning that the project would be put together as a work in progress rather than carefully thought out prior to execution of a plan. This is a cultural difference both sides experienced that could have been addressed by an introduction to work methods before Jim/Klaus started with their new team, which could have avoided the sense of frustration all on the project felt. Outlining the process and the roles each person would play would help the visitor better learn the corporate/national culture.

Militant Nonviolence Essay Example for Free

Militant Nonviolence Essay Erik Erikson, the world-renowned author of the book Gandhi’s truth has also been popular because of his stages of psychosocial development (Niolon, 2007) . The said stages are enumerated in this manner: Infancy (Birth – 18 months) wherein the main psychosocial crisis is trust vs. mistrust, Toddler (1 1/2 – 3 years) which usually involves autonomy vs. shame doubt, Play Age (3-6 years), usually involving the psychosocial crisis of initiative vs. guilt, school age (7-12 years), which often related to industry vs. inferiority, adolescence (12-19 years), identity vs. role confusion, young adulthood (20-34 years old), intimacy vs. isolation, adulthood (35-60 years), generativity vs. stagnation, and finally, late adulthood (60 years and above that is usually associated with the psychosocial crisis integrity vs. despair (Niolon, 2007) . This paper shall look into the book authored by the same person, entitled Gandhi’s truth, a book that has been said to be the acclaimed study of Mahatma Gandhi, taking the psychoanalytic theory developed by its author into consideration. This non-fictional literary work shall be analyzed based on the theory developed by the same psychoanalyst together with the discussions obtained from the book Development and Aging by Papalia, Sterns, Feldman and Camp, including topics such as health and aging, intelligence and its measurements, creativity, mature thought, wisdom and moral intelligences; education, work and leisure, etc. It has been a known fact that humans face their decline when they reach a certain age. It is often heard from different people that this kind of decline happens as most people are not as productive as they were once was in their childhood or early adulthood. This is also most prevalent in most senior citizens (Godrej, 2002). Apparently, for most studies, development stops at a certain stage . On the contrary, Erikson’s theory disproves the fact that development stops. In fact, it continues throughout the life cycle. According to the psychoanalyst and author of the very popular book, older people are not finished developing. Older people are said to come up to terms with their own morality, making them look deeper into their while lives. More often than not, they look back to the good times with gladness, at their hard times with self –respect, and finally, look at their mistakes and regrets with forgiveness (Lasch, 1969) . It is doing so that they rediscover integrity as they get ready for whatever challenges that life and death could bring upon them. On the other hand, those who remain isolated to the hurts and sadness that their life brought to them, shall be dissatisfied with the life that they have led and would easily get depressed. These are the concepts being described by Erik Erikson in his stages of psychosocial development. He has reflected these said concepts onto the life of Mohandas Gandhi, more popularly known as Mahatma or the great soul, the father of the Indian Nation. Almost everyone on the face of this planet has heard about the contributions of one of the humans who has been said to lead a great life to the history of India and the whole world (Anderson, n. d. ). He was generally known, as mentioned, as the father of the Indian nation who continuously fought for the independence of his nation from the British colonizers, despite the consequences he faced, despite his old age. Erikson’s Gandhi’s truth is generally a psychological reconstruction of Gandhi’s early years in Kathiawar on the Arabian Sea as well as his exile in London and South Africa. In the same manner, it provided an in depth analysis of the 1918 textile workers’ strike in Ahmedabad where Gandhi was first seen to practice his doctrine of Satyagraha or non violence (Lasch, 1969) . Erikson looked into the other aspects of this great man’s life that influenced his adoption of Satyagraha. The said author looked into the precocious and relentless conscience of the great soul by looking onto these said events which included the way Gandhi nursed his father, the civil servant whose career and health declined during his son’s youth, which helped him, set the pattern for a leadership that could defeat a superior opponent nonviolently (Lasch, 1969). Gandhi’s unsuccessful and premature marriage’s effect on his adoption of Satyagraha was also examined. Generally, this unsuccessful marriage of his left him in horror of his sexuality (Anderson, n. d. ). At the same time, it encouraged him to develop the religious and spiritual aspect of his life that played a very important role in his battle for the independence of his beloved country (Lasch, 1969). Of course, this has been the reason why Mahatma Gandhi started his quest for sainthood which had taken a political form. Gandhi’s leadership in the said textile strike has also been reexamined. It is where Erikson focused his study on the life of the great soul, in relation to that of his developed theory (Anderson, n. d. ). According to the said author, this has been one of the most unusual exercises in nonviolence though it led to the victory of Mahatma and the textile workers. This does not only reflect Mahatma Gandhi’s doctrine of nonviolence but his faithfulness to dharma (Lasch, 1969) . Aside from the religious life led by Mohandas K. Gandhi, more popularly known as Mahatma Gandhi, his spatial intelligence and creativity should be reconsidered. These two has contributed so much to his doctrine as he was able to devise ways, using his intelligence as a wise man in devising ways to battle their colonizers (Lasch, 1969). Generally, his spatial intelligence allowed Gandhi a better and quicker ways of correcting mistakes than other forms of political action. Gandhi’s doctrine aims to cure men of their righteous and fanatic moralism that has been said to be the cause of violence that are quite irrational (Anderson, n. d. ). It is obviously seen that Gandhi’s actions as an aged man has not declined due to the challenges he experienced during his childhood and young adulthood (Chawla, 2001). In the same manner, his doctrine of non-violence or Satyagraha has not only been affected by his deteriorating health but of his beliefs, religiousness and faithfulness to dharma that has contributed so much in his fight for the freedom of his motherland, India, the land which had been infamously known for its division brought about by differences in religion (Anderson, n. d. ). Basically, the analysis of this book, together with the psychoanalytical theory developed by Erik Erikson, has provided the psychological foundations of what has been known all over the world as great leadership and non-violence. It showed how Gandhi’s previous experiences affected his life as an aged man. As Erikson suggest, the spirit that Gandhi had ever since his childhood has influenced standardization (Anderson, n. d. ). Every individual is then encouraged to follow his own path, a path that is based on his insights with regard to the realities of the world that he is living in as well as the realities by which he or she knows his or her own self. If this perceptions turn out to be true, then the path he has taken shall be the path of truth. This is what the life of Gandhi, based on Erikson’s book showed us. His perceptions that have been developed and continuously developing throughout his own life has influenced the development of a doctrine and philosophy that has gained him the title of a great soul (Chawla, 2001) . It is through this that he was able to influence not just his countrymen but the whole world as well. Eventually, looking into the brighter side of life can do so much good to a person who is in the last stage of his psychosocial development. In Gandhi’s case, he did not allow his weaknesses to serve as barriers in his fight, instead, he utilized them in such a way that his opponents looked onto it as his strengths (Anderson, n.d. ). References Anderson, H. (1971. ) Gandhis Truth: On the Origins of Militant Nonviolence. Theology Today. Vol 28. No. 2 Retrieved December 18, 2007 from http://theologytoday. ptsem. edu/jul1971/v28-2-bookreview10. htm Chawla, A. (2001). MOVING BEYOND GANDHIS TRUTH. Retrieved December 18, 2007 from http://www. samarthbharat. com/truth. htm ERIKSONS THEORY OF PSYCHOSOCIAL DEVELOPMENT (2007). Retrieved December 18, 2007 from http://www. fractaldomains. com/devpsych/erikson. htm Erikson, E. (1969). Gandhi’s Truth. Journal of Religion and Health. Volume 9, Number 3. Godrej. F. (2002). Gandhi’s Truth: Nonviolence as Epistemological Arbiter. Retrieved December 18, 2007 from http://www. allacademic. com/meta/p65025_index. html Lasch, C. (1969). One Mans Quest for Sainthood and the Revolutionary Philosophy to Which It Led. Retrieved December 18, 2007 from http:// www. nytimes. com/books/99/08/22/specials/erikson-gandhi. html Niolon, R. (2007) Erickons Psychosocial Stages of Development. Retrieved December 18, 2007 from http://www. psychpage. com/learning/library/person/erikson. html

Appropriation of Brand Extension

Appropriation of Brand Extension LITERATURE REVIEW This chapter intends to set the theoretical frame of the thesis by introducing the main areas needed to create the basis of our analysis, shaping the ways towards our own main purpose. Thus, it begins with the roots of brand extension and starts of with the concepts of brand, brand identity and brand hierarchy and then leads into brand extension and explains it as a means of growth for a brand. Narrowing down the scope, it goes into the typology of brand extension and identifies the successful and unsuccessful factors of brand extension. Finally it identifies certain rules for the success of brand extension and looks at different models used for the effectiveness of brand extension. 2.1 BRANDING: In todays world of increased competition and consumer awareness, the marketing of new products has become ever more complex. We have moved into a time where consumers are literate enough to choose their own products on the basis of their judgment and where competition among products and services gives them an opportunity to select the best product that would suit their need. Branding has become one of the most important issues in the launch of a new product. Having functional and emotional attributes attached to it, branding has gained popularity as consumer relates more and more to it. Historically examples of branding can be found as early as 9000 years ago when owners or manufacturers used to give distinctive and distinguishing symbol or name to their property or product. However it was the 19thcentury that arguably saw the dawn of the modern branding era and it was the industrial revolution that caused its birth. It was the industrial revolution that created the mass production t hat meant an ever- increasing proportion of people worked for a manufacturer and not themselves. They no longer needed to mark the products that they produced as their own; rather what they produced was collectively produced for one company. Before we proceed further, lets look more deeply into branding and then link that to the concept of brand extension. 2.1.1 DEFINITION AND EXPLANATION Different scholars have defined the word brand differently as different meaning or contexts have been attached to them. Balmer and Greyser (2003) have given the most explanatory definition of branding explaining both the traditional and their own perspective about branding. They have stepped forward from the traditional definitions of branding and have defined branding on the corporate level having corporate implications. According to them three type of definitions have been identified. The first two are traditional whereas the third one is the advanced version of branding which incorporates their point of view about branding. They are: Erstwhile. In its simplest sense a brand denotes a name, logotype, or trademark and was originally used to signify ownership as with branding of live stock. These are, increasingly, seen to be points of entry to the essence of a brand rather than the essence of branding per se. (Definition similar to the one given in Oxford Concise Dictionary) Established. This refers to the added values that a brand brings to a product. Products may or may not have brand values. Product brand values are superimposed by the organization by its marketing and communication experts and advisers. They are made memorable. In the main, such values are fashioned in the mind; not on the production floor. They are, essentially, synthetic. Whereas products are made in a factory, brand values exist in the mind. Brands can be timeless in a way that products may not be. However Balmer and Greyser(2003) have identified a new understanding about brands. They call this aspect of branding as emergent Emergent. While the category most certainly is established, the fundamental differences between this category and the other two are only beginning to be appreciated. This category refers to brands at the corporate level. Corporate brand values are not contrived; they need to be bona fide. The role of personnel and of culture in establishing and maintaining and understanding corporate brand values is of essence. In the words of Sir Michael Perry, a former Chairman of Unilever, brand is much more than a symbol to differentiate goods and services: In the modern world, brands are a key part of how individuals define themselves and their relationships with one another. More and more we are simply consumers We are what we wear, what we eat, what we drive. This description of brand explains that brand is much more than the physical and functional value that it holds. Its a bundle of attributes both functional and emotional. Thus brands not only meet our physical needs but also address our emotional needs. A blind test was conducted on Pepsi and Coca Cola. It was found that Pepsi was preferred over Coke in regards to its taste. Yet the sales of Coke are much higher than Pepsi that shows that despite being functionally better, people are emotionally attached to coke. Stephen King was Director of planning at one of the largest advertising agencies, J Walter Thompson, when he described brand as: People choose their brand as they choose their friends. You choose your friends not usually because of specific skills or physical attributes (though of course these come into it) but simply because you like them as people. It is the total person you choose, not a compendium of virtues and vices. 2.2 BRAND IDENTITY Brand identity refers to the public image of a product, line or service in the eyes of a consumer. McClendon (2003) considers that brand identity is something that exists in the minds and hearts of the consumers when they hear the name of the brand. He further adds that it is the identity of the brand that provides the real strength to the business. It is the visual link between the company and the consumer. Brand identity includes brand names, logos, positioning, brand associations and brand personality. Upshaw (1995) has identified brand identity as a brands DNA configuration. He supposes that the particular set of brand elements is blended in a unique way to establish how the brand will be perceived in the market place. According to Kapferer (2001), it is critical for each business to understand that the attributes of a brand represent the indispensable elements. Not all brand managers are aware of this. Yet in order to find out which of the extended brand elements is needed to me diate with the market, pre testing is done and this is considered to be the best method to avoid trails and errors. In his book, Aaker (2000) argues that a brand is more than a product. Creating an extension can benefit the parent brand by helping it break out of the box. According to him, there are several reasons for building a rich extended brand identity, reasons that are going to be illustrated in the following figure and explained underneath it. A richer brand identity is a more accurate reflection of the brand. Just as a person cannot be described in one or two words, neither can a brand. Three word taglines or an identity limited to attributes will simply not be accurate (Aaker, 2000, p. 54). Aaker (2000) considers that the identity of a brand represents what the brand stands for. Taking into consideration that the brand identity is inspirational, it must comprise and reflect the values and cultures of the entire organization. Moreover, customer concern should dominate the strategy of the business. And lastly, Aaker emphasizes in his picture that the extended identity provides a home for constructs that help the brand move beyond attributes. In particular, brand personality and symbols normally fail to make the cut when a terse brand position is developed, yet both are often extremely helpful strategically as well as tactically (Aaker, 2000, p.54). Balmer (2003) has emphasized on the concept of corporate identity and in his historiography model, we are currently in stage 4 in which the emphasis would be on organizational identity, corporate identity, corporate communication, corporate reputation and finally but most importantly corporate branding. 2.3 BRAND HIEARCHY TREE Brand structure can be illustrated logically by using the brand family tree together with all the related sub-brand branches. The figure below can be viewed as an organizational chart. The horizontal and vertical dimensions are grouped after numerous factors such as segment, product, quality and design (Aaker, 2000). The horizontal dimension shows the scope of the brand in terms of the sub brands that lie under the brand umbrella in the box visualized Colgate as a parent brand. The vertical dimension represents the brands and sub-brands that exist for an individual product- market entry (Aaker, 2000). The visualized overview of the whole brand guides the brand managers to keep an eye on its entire brand and to analyze if there are too many or too few. The question is how these brands can be reinforced, what message they deliver to the consumer and what improvements to the particular message can be done (Aaker, 2000). Keeping an eye on this hierarchy is quite important as it enables a company to identify the fit for new extension and also helps to maintain a clear vision of each product keeping in view the rest of the brands in the hierarchy. Thus its easy to maintain fit and leverage in brand extension with the help of this brand hierarchy. Every company would like to see its brand growing and prospering. Brands grow through two principle means. The first mean is called organic growth whereas the second one is called growth through extension. 2.4 ORGANIC GROWTH FOR BRANDS In this case making a brand or product frequently available or adding incentives to the brand makes it more popular. Sales of any one brand increase because what they have to offer becomes attractive to somebody, somewhere. Brands can be made more attractive by improving either the functional or emotional attributes of the brand. Thus in functional attributes we can improve any of the four Ps whereas in emotional one can improve the personality or image of the brand. A good example would be of Coca Cola and their distribution. Not only have they made it available from Atlanta to Zanzibar, from Moscow to Melbourne but also you can buy it from supermarkets, newsagents, cinema, restaurants, street corners, cafà ©, football stadium, pop concert and even at car parks where you have vending machine1. Whilst there are numerous marketing tools to achieve organic growth, this type of growth stems from three things: getting that brand used by more people, getting it used by the same people more often or getting people to use more of it on any of the occasions they use it in the first place. 2.5 GROWTH THROUGH EXTENSION The second and relatively newer way of growing brand is through extension, which is the core focus of this study. Before going into detail about how brands grow through extension, I will firstly define extension and try to differentiate the various types of extensions. Due to the relative immaturity of the concept, there is no standard definition of brand extension and various marketing scholars have given different definition to the same terminology. From the readings that I have conducted of books and research papers, its obvious that around a decade back scholars used to give a more generalized definition of brand extension. The generalization of the definition can be observed from the fact that brand extension was used for extension into both related and non-related products. The following definition will clarify my point of view. In a typical brand extension situation, an established brand name is applied to a new product in a category either related or unrelated, in order to capitalize on the equity of the core brand name (DeGraba and Sullivan, 1995; Pitta and Katsanis, 1995). Also certain research papers indicated that brand extension being generalized was then differentiated into two types as indicated by this piece of research work. Brand extensions come in two primary forms: horizontal and vertical. In a horizontal brand extension situation, an existing brand name is applied to a new product introduction in either a related product class, or in a product category completely new to the firm (Sheinin and Schmitt, 1994). A vertical brand extension, on the other hand, involves introducing a brand extension in the same product category as the core brand, but at a different price point and quality level (Keller and Aaker, 1992; Sullivan, 1990). In a vertical brand extension situation, a second brand name or descriptor is usually introduced alongside the core brand name, in order to demonstrate the link between the brand extension and the core brand name (e.g. Marriott Hotels, Courtyard Inn by Marriott). Most recently the word line extension has been given to extension done in the same product category whereas brand extension would refer to extension in unrelated products and in this study I will undertake this understanding of extension. Taylor (2003) has referred to them as direct and indirect stretch. Jobber (2003) has given the term brand extension to line extension whereas brand extension has been referred to as brand stretch. The current emphasis on the subject has been due to its enormous success. Consumers being the end users have become friendlier to the concept and are now accepting it as illustrated on the next page. Its obvious from this graph that consumers are becoming much friendlier to the concept then they were a decade ago and this shows the popularity of the concept and the frequency at which it has been used in the past decade. Lets get an insight into the various types of extension. 2.5.1 LINE EXTENSION OR DIRECT STRETCH Line extension is defined as being a variant of the same basic product. It might be a new flavor or a new size. Basically its a slight variation to the original product. Examples would be of Colgate. We used to have Colgate regular but now we have Colgate total, Colgate Max fresh Gel, my first Colgate for kids, Platinum, Deep clean etc. The basic purpose of this strategy is to encourage more people to use a brand. It can also be considered as a first step towards brand extension. But the only bad thing about too many variations in the products or having too many line extension is that it may confuse the user in regards to which product should he/she use. Also it may cause a cannibalization affect within the product range. 2.5.2 BRAND EXTENSION OR INDIRECT STRETCH Brand extension on the other hand would refer to extending your product range into a product category that wouldnt be commonly associated with it. A simple definition described below will illustrate my point of view. Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category. (Brandextension.org) Giles Lury in his book about Brand Watching has defined brand extension as: Brand extension is the use (and occasional misuse) of an existing brand name and equity to launch a product or service into a category or market not normally associated with that brand. (Lury, 1998) Thus in contrast to earlier scholars, who had generalized the concept of brand extension, new researchers have distinguished the concept well from line extension. 2.6 RATIONALE BEHIND USING BRAND EXTENSION Brand extension has gained a lot of popularity and is considered to be the key tool for launching new innovations. A survey was conducted by Brand gym in 2003 in which marketing directors were asked about brand extension. The following graph illustrates the response. The results indicated that 83% of the marketing directors thought that brand extension would be the main way of launching new innovation in the next two to three years. Yet research has also shown that only 50 percent of brand extension survives after the first three years. Firstly brand extension differs from line extension because where line extension offers customers more varieties or styles of the original brand in its original market, a brand extension takes an existing brand to pasture new ones. Taking Mars as an example we see that the original chocolate bar has been line extended into different styles including Mars Kingsize, Mars miniature and for a limited period Dark chocolate Mars. However when Mars launched the Mars ice cream, it entered a new market for the brand and as such had extended the brand franchise. Mars also extended into flavored milk drinks market with Mars in a bottle. The rationale behind brand extensions popularity is that its difficult and expensive to launch a completely new brand. The most often quoted statistic being that nine out of every ten new brands fail. New brands are therefore seen as a high, though sometimes high return strategy. On the other hand, brand extension is a cheaper and more reliable method of building on what already exists. Not surprisingly companies who have already invested a lot of money in creating a brand are keen to maximize its full potential. Finally it can be concluded that companies would like to leverage and thus give initial success to the new brand by exploiting the equity that has been established by the parent brand. 2.7 KELLER AND AAKERS WORK ON BRAND EXTENSION Keller and Aaker (1998) extending on their typology of product range extension and corporate brand extension have examined the impact of corporate marketing on a companys brand extension. In their research paper they have described how consumers evaluate brand extension in general and then concentrating on corporate brand extension, they have studied the impact of corporate marketing on consumer evaluation of corporate brand extension in the presence and absence of supporting product advertising. The initial research work describing product brand extension is as follows: Research on consumer responses to extensions of product brands, suggest that two key factors influence consumer evaluation. the types of association that make up the parent brand image the relationship between the parent brand and the extension product These factors affect the consumer belief about whether the new product fits as a member of the product line. In sum, the record therefore suggests that a variety of different associations for the parent brand can be transferred to an extension, assuming a basis of fit exists. Now an extension that they made in regards to brand extension was that they applied this concept to corporate brand extension. But before going further its important to know Aakers three dimensions of corporate credibility. They are: 1. Corporate expertise is the extent to which a company is thought able to competently make and sell its products and services. 2. Corporate trustworthiness is the extent to which a company is thought to be honest, dependable, and sensitive to consumer needs. 3. Corporate likability is the extent to which a company is thought likable, prestigious and interesting. This results gathered from this study have strategic implication both to the benefits/risks associated with brand extension and also to the effectiveness of brand extension. Thus a summary of the results are as follows. Firstly by showing that corporate marketing related to product innovation enhances perceptions of corporate credibility and extension fit, and thus much favorable extension evaluations, this study showed benefits for brands with reputation of high quality products. Secondly this study provided a more detailed account of particular dimensions of corporate credibility, namely corporate expertise, trust worthiness and likeability. Thus this study concluded that corporate expertise appeared to play a more influential role in evaluation of corporate brand extension than either corporate trustworthiness or likeability. Thirdly this study suggested the merits of leveraging a strong brand to introduce a new product. One advantage of using a brand extension strategy to name a new product is that a less concerted advertising effort may be necessary. To the extent that brands extensions are able to leverage existing parent brand associations in consumer memory, a company should find it easier to achieve brand image with an extension branding strategy instead of giving a new product a new name. The fact that corporate marketing activity impacted consumer evaluations of a corporate brand extension in the absence of any product specific advertising is further an empirical support for the benefit of adopting a brand extension strategy. Fourthly this study suggested that corporate marketing activity significantly influenced extension evaluations even when the extension was advertised on the basis of another image dimension point. Thus corporate image associations are more likely to transfer to an extension on the basis of the branding strategy. Lastly this study also suggested that where a company is in a situation of having a trade off between various strategies like reinforcing a strong association, strengthening a weak association or creating a new association, then it wholly depends on the situation of each of the elements to decide which strategy to choose. For example: In some cases, existing associations may be so strong that they may be better off emphasizing other information to fortify a weak or supply a missing association. 2.8 TYPES OF BRAND EXTENSION Limited work has been done on the typology of brand extension. From various research papers, books and websites that I have consulted regarding brand extension, very few have distributed brand extension into different types. (Brandextension.org) have generated the following typology of brand extension taking functional and emotional attributes of the brand into consideration. 1. Similar product in a different form from the original parent product. This is where a company changes the form of the product from the original parent product. An example is (frozen) Snickers Ice Cream Bars. The original Snickers bar is a shelf stable candy. The brand extension is a similar product, but in a different form. Jell-O Portable Pudding and Pudding Cups is Jell-O pudding in a different form and section of the store. 2. Distinctive flavor/ingredient/component in the new item. When a brand owns a flavor, ingredient or component, there may be other categories where consumers want that property. E.g. Peanut butter is a characteristic ingredient in Reeses Peanut Butter Cups candy. Chocolate is a characteristic ingredient of Hershey. Brand Extension Research identified Reeses Peanut Butter as a logical extension that capitalizes on this association. 3. Benefit/attribute/feature owned. Many brands own a benefit, attribute or feature that can be extended. E.g. Brand Extension Research showed Armor All brand was defined by automotive surface protection which can go beyond vinyl dressing. Paint needs protecting also. Arm Hammer owns a benefit of deodorizing. Their baking soda product has claimed that it removes odors from refrigerators, etc. As a result, they extended the brand into other products such as Arm Hammer underarm deodorant and cat litter deodorizer. 4. Expertise. Over time, certain brands may gain a reputation for having an expertise in a given area. Leverage can be achieved when extending into areas where this special expertise is deemed important. E.g. Hondas expertise in reliable engines led to lawn mowers, gas powered generators and a variety of other gasoline engine powered devices. What brand comes to mind when we think of baby products? Gerber. As a result of this acceptance of their expertise, they successfully launched Gerber Baby Powder, Gerber Baby Bottles, etc. Sara Lee is known for baked desserts, so why not other baked goods like bread. 5. Companion products. Some brand extensions are a natural companion to the products the company already makes. E.g. Contadina was a tomato paste and sauce brand. In brand extension research, consumers thought Contadina pasta was a logical companion product that would have the leverage of the Italian heritage of the parent. Aunt Jemima (the pancake mix brand) launched pancake syrup, as a companion to compete with Log Cabin syrup. 6. Vertical extensions. Some brand extensions are vertical extensions of what they currently offer. A brand can use their ingredient/component heritage to launch products in a more (or sometimes less) finished form. E.g. Nestlà ©s Toll House chocolate refrigerated cookies is an example. Most Toll House chocolate chips are used in cookies, so why not make a brand of Toll House chocolate chip cookies. Mrs. Fields Cookies were ready-to-eat. They offered frozen cookie dough, moving backwards as a vertical extension. Rice Krispies has always been used in kids treats. Kellogg offered Rice Krispies Treats ready-to-eat. 7. Same customer base. Many brand extensions represent a marketers effort to sell something else to its customer base. This works particularly well when that customer base is large and to some extent captive. E.g. VISA launched travelers checks directed to its credit card customers. 8. Designer image/status. Certain brands convey status and hence create an image for the user. E.g. Designer clothing labels have been extended to furniture, jewellery, perfume, cosmetics and a host of other items. Some brands promote a lifestyle and can extend to items that people wear, as a badge of identifying themselves with that lifestyle. The above-mentioned typology is quite useful as it indicate the key areas where extension is done along with the methodology used to extend the product line. Yet it must be said that not all research work would agree with this typology as it is felt that certain types confuses line and brand extension or in ways generalizes it more to extension rather than brand extension. For example: Adding attribute to the products in the same product line would be line extension and not brand extension. Still it is a good base for my research work and also for further research into the typology of brand extension. Aaker (1998) has described two types brand extension differentiating the concept on a corporate level. The first type described by him is product brand extension. A company makes a product brand extension when it uses an existing brand name distinct from its corporate name to introduce a new product outside its current product offering. With product brand extension consumers are often completely unaware of the company involved. The second type described by him is corporate brand extension. A corporate brand extension is one which relies on the corporate name to launch a new product . A corporate brand extension clearly identifies an organization with a product, and so evokes different reactions from consumers than a product brand extension. A corporate brand may create associations in consumers minds that reflect the values, program, and activities of the firm. 2.9 SEQUENTIAL STRETCHING AND UMBRELLA BRANDING Extension to parent brand is usually a sequential process in which brands are initially line extended and then brand extended. This sequential stretching of brands leads to the formation of a whole family of brands thus giving rise to the concept of Umbrella branding. As the name indicates, umbrella branding refers to extension of a parent brand into a variety of products such that a whole range of products would come under the same brand. Taylor (2003) has divided the sequential extension into three main steps namely core brand extension, direct stretch and indirect stretch. I will illustrate the concept using Dove as an example. Brand extension was a key driver of Doves explosive growth during the 1990s. Coupled with geographic expansion, it helped grow sales fivefold, to almost $1 billion. The brand continues to grow at 20 percent per year and is well on its way to hitting the $ 2 billion mark in the next few years. Let go through the sequential process and apply it to Dove. The first and most crucial step to be noted is that Dove didnt extend its product line until it had achieved the following two things. †¢ A strong bar business had been built †¢ The brand had satisfactory scores on attributes rating for mildness and moisturizing. An important thing to be noted is that extension took place only after Dove had secured its soap bar business and had improved it. Thus once there was strength in the brand, it extending it to other products. Stretching went through the following stages. Stage One: Core Range extensions: Dove remained a product brand with a single format at this stage. It extended (line extension) its product range by adding new versions such as sensitive skin that now accounts for up to a third of sales. Further growth of the bar through product and pack innovation, remains a key source of profitable growth. Diagrammatic illustration of this step would indicate the extension into the two types. Stage Two: Direct stretch: In this stage extension is done into markets that are quite relevant to the product line. In the case of dove, it extended its product range into bath and shower products. Yet till now dove is focused on personal washing. The key reasons of dove extension at this stage were strong product delivery and innovative packing that differentiated them from other products in the range. The following diagram illustrates their stretch in to shower and bath products. Stage three: Indirect stretch: Capitalizing on their skin care outlook, Dove decided to be ambitious and to move beyond the washing and bathing market. Although they started off selectively, they introduced products like deodorants and hair gels etc. that were once again a big success. This process of broadening a product range is referred to as Umbrella Branding as illustrated by the diagram given below. The dove success has been due to consistent marketing and a consistent communication campaign. Consistency has been a key part of building brand identity and has been an additional glue to tie together the extension. 2.10 BENEFITS AND DRAWBACKS ASSOCIATED WITH BRAND EXTENSION Brand extension being the most popular mean of brand growth has some surprising statistics. Success rate of brand extension is hard to find, especially as what constitutes a success varies enormously. Yet a survey conducted by OCC using a simple and effective definition of success (still being on shelf after six years after launch) found out that 50 percent of all brand extension fails. This figure is certainly an eye opener for most companies as half of the product fails using brand extension. Taylor (2003) has associated this huge failure figure due to Brand ego tripping and also gives effective steps to avoid it. But before we go into the detail of this concept, lets look into the benefits and drawbacks of brand extension. 2.10.1 BENEFITS ASSOCIATED WITH BRAND EXTENSION The remarkable popularity of the concept over the last decade is a confirmation of the fact that there are marked benefits that can be associated with brand extension. Taylor (2003) has described the consumer benefits of brand extension in which he has identified consumer knowledge, consumer trust and lower cost as the major benefits of brand extension. Tauber (1988) has differentiated the benefits on the basis of efficiency and effectiveness emphasizing more on the cost benefits. An existing strong brand promotes a new product or service as there is less need to create awareness and imagery. Thus in a way awareness is already present and the only thing left is Appropriation of Brand Extension Appropriation of Brand Extension LITERATURE REVIEW This chapter intends to set the theoretical frame of the thesis by introducing the main areas needed to create the basis of our analysis, shaping the ways towards our own main purpose. Thus, it begins with the roots of brand extension and starts of with the concepts of brand, brand identity and brand hierarchy and then leads into brand extension and explains it as a means of growth for a brand. Narrowing down the scope, it goes into the typology of brand extension and identifies the successful and unsuccessful factors of brand extension. Finally it identifies certain rules for the success of brand extension and looks at different models used for the effectiveness of brand extension. 2.1 BRANDING: In todays world of increased competition and consumer awareness, the marketing of new products has become ever more complex. We have moved into a time where consumers are literate enough to choose their own products on the basis of their judgment and where competition among products and services gives them an opportunity to select the best product that would suit their need. Branding has become one of the most important issues in the launch of a new product. Having functional and emotional attributes attached to it, branding has gained popularity as consumer relates more and more to it. Historically examples of branding can be found as early as 9000 years ago when owners or manufacturers used to give distinctive and distinguishing symbol or name to their property or product. However it was the 19thcentury that arguably saw the dawn of the modern branding era and it was the industrial revolution that caused its birth. It was the industrial revolution that created the mass production t hat meant an ever- increasing proportion of people worked for a manufacturer and not themselves. They no longer needed to mark the products that they produced as their own; rather what they produced was collectively produced for one company. Before we proceed further, lets look more deeply into branding and then link that to the concept of brand extension. 2.1.1 DEFINITION AND EXPLANATION Different scholars have defined the word brand differently as different meaning or contexts have been attached to them. Balmer and Greyser (2003) have given the most explanatory definition of branding explaining both the traditional and their own perspective about branding. They have stepped forward from the traditional definitions of branding and have defined branding on the corporate level having corporate implications. According to them three type of definitions have been identified. The first two are traditional whereas the third one is the advanced version of branding which incorporates their point of view about branding. They are: Erstwhile. In its simplest sense a brand denotes a name, logotype, or trademark and was originally used to signify ownership as with branding of live stock. These are, increasingly, seen to be points of entry to the essence of a brand rather than the essence of branding per se. (Definition similar to the one given in Oxford Concise Dictionary) Established. This refers to the added values that a brand brings to a product. Products may or may not have brand values. Product brand values are superimposed by the organization by its marketing and communication experts and advisers. They are made memorable. In the main, such values are fashioned in the mind; not on the production floor. They are, essentially, synthetic. Whereas products are made in a factory, brand values exist in the mind. Brands can be timeless in a way that products may not be. However Balmer and Greyser(2003) have identified a new understanding about brands. They call this aspect of branding as emergent Emergent. While the category most certainly is established, the fundamental differences between this category and the other two are only beginning to be appreciated. This category refers to brands at the corporate level. Corporate brand values are not contrived; they need to be bona fide. The role of personnel and of culture in establishing and maintaining and understanding corporate brand values is of essence. In the words of Sir Michael Perry, a former Chairman of Unilever, brand is much more than a symbol to differentiate goods and services: In the modern world, brands are a key part of how individuals define themselves and their relationships with one another. More and more we are simply consumers We are what we wear, what we eat, what we drive. This description of brand explains that brand is much more than the physical and functional value that it holds. Its a bundle of attributes both functional and emotional. Thus brands not only meet our physical needs but also address our emotional needs. A blind test was conducted on Pepsi and Coca Cola. It was found that Pepsi was preferred over Coke in regards to its taste. Yet the sales of Coke are much higher than Pepsi that shows that despite being functionally better, people are emotionally attached to coke. Stephen King was Director of planning at one of the largest advertising agencies, J Walter Thompson, when he described brand as: People choose their brand as they choose their friends. You choose your friends not usually because of specific skills or physical attributes (though of course these come into it) but simply because you like them as people. It is the total person you choose, not a compendium of virtues and vices. 2.2 BRAND IDENTITY Brand identity refers to the public image of a product, line or service in the eyes of a consumer. McClendon (2003) considers that brand identity is something that exists in the minds and hearts of the consumers when they hear the name of the brand. He further adds that it is the identity of the brand that provides the real strength to the business. It is the visual link between the company and the consumer. Brand identity includes brand names, logos, positioning, brand associations and brand personality. Upshaw (1995) has identified brand identity as a brands DNA configuration. He supposes that the particular set of brand elements is blended in a unique way to establish how the brand will be perceived in the market place. According to Kapferer (2001), it is critical for each business to understand that the attributes of a brand represent the indispensable elements. Not all brand managers are aware of this. Yet in order to find out which of the extended brand elements is needed to me diate with the market, pre testing is done and this is considered to be the best method to avoid trails and errors. In his book, Aaker (2000) argues that a brand is more than a product. Creating an extension can benefit the parent brand by helping it break out of the box. According to him, there are several reasons for building a rich extended brand identity, reasons that are going to be illustrated in the following figure and explained underneath it. A richer brand identity is a more accurate reflection of the brand. Just as a person cannot be described in one or two words, neither can a brand. Three word taglines or an identity limited to attributes will simply not be accurate (Aaker, 2000, p. 54). Aaker (2000) considers that the identity of a brand represents what the brand stands for. Taking into consideration that the brand identity is inspirational, it must comprise and reflect the values and cultures of the entire organization. Moreover, customer concern should dominate the strategy of the business. And lastly, Aaker emphasizes in his picture that the extended identity provides a home for constructs that help the brand move beyond attributes. In particular, brand personality and symbols normally fail to make the cut when a terse brand position is developed, yet both are often extremely helpful strategically as well as tactically (Aaker, 2000, p.54). Balmer (2003) has emphasized on the concept of corporate identity and in his historiography model, we are currently in stage 4 in which the emphasis would be on organizational identity, corporate identity, corporate communication, corporate reputation and finally but most importantly corporate branding. 2.3 BRAND HIEARCHY TREE Brand structure can be illustrated logically by using the brand family tree together with all the related sub-brand branches. The figure below can be viewed as an organizational chart. The horizontal and vertical dimensions are grouped after numerous factors such as segment, product, quality and design (Aaker, 2000). The horizontal dimension shows the scope of the brand in terms of the sub brands that lie under the brand umbrella in the box visualized Colgate as a parent brand. The vertical dimension represents the brands and sub-brands that exist for an individual product- market entry (Aaker, 2000). The visualized overview of the whole brand guides the brand managers to keep an eye on its entire brand and to analyze if there are too many or too few. The question is how these brands can be reinforced, what message they deliver to the consumer and what improvements to the particular message can be done (Aaker, 2000). Keeping an eye on this hierarchy is quite important as it enables a company to identify the fit for new extension and also helps to maintain a clear vision of each product keeping in view the rest of the brands in the hierarchy. Thus its easy to maintain fit and leverage in brand extension with the help of this brand hierarchy. Every company would like to see its brand growing and prospering. Brands grow through two principle means. The first mean is called organic growth whereas the second one is called growth through extension. 2.4 ORGANIC GROWTH FOR BRANDS In this case making a brand or product frequently available or adding incentives to the brand makes it more popular. Sales of any one brand increase because what they have to offer becomes attractive to somebody, somewhere. Brands can be made more attractive by improving either the functional or emotional attributes of the brand. Thus in functional attributes we can improve any of the four Ps whereas in emotional one can improve the personality or image of the brand. A good example would be of Coca Cola and their distribution. Not only have they made it available from Atlanta to Zanzibar, from Moscow to Melbourne but also you can buy it from supermarkets, newsagents, cinema, restaurants, street corners, cafà ©, football stadium, pop concert and even at car parks where you have vending machine1. Whilst there are numerous marketing tools to achieve organic growth, this type of growth stems from three things: getting that brand used by more people, getting it used by the same people more often or getting people to use more of it on any of the occasions they use it in the first place. 2.5 GROWTH THROUGH EXTENSION The second and relatively newer way of growing brand is through extension, which is the core focus of this study. Before going into detail about how brands grow through extension, I will firstly define extension and try to differentiate the various types of extensions. Due to the relative immaturity of the concept, there is no standard definition of brand extension and various marketing scholars have given different definition to the same terminology. From the readings that I have conducted of books and research papers, its obvious that around a decade back scholars used to give a more generalized definition of brand extension. The generalization of the definition can be observed from the fact that brand extension was used for extension into both related and non-related products. The following definition will clarify my point of view. In a typical brand extension situation, an established brand name is applied to a new product in a category either related or unrelated, in order to capitalize on the equity of the core brand name (DeGraba and Sullivan, 1995; Pitta and Katsanis, 1995). Also certain research papers indicated that brand extension being generalized was then differentiated into two types as indicated by this piece of research work. Brand extensions come in two primary forms: horizontal and vertical. In a horizontal brand extension situation, an existing brand name is applied to a new product introduction in either a related product class, or in a product category completely new to the firm (Sheinin and Schmitt, 1994). A vertical brand extension, on the other hand, involves introducing a brand extension in the same product category as the core brand, but at a different price point and quality level (Keller and Aaker, 1992; Sullivan, 1990). In a vertical brand extension situation, a second brand name or descriptor is usually introduced alongside the core brand name, in order to demonstrate the link between the brand extension and the core brand name (e.g. Marriott Hotels, Courtyard Inn by Marriott). Most recently the word line extension has been given to extension done in the same product category whereas brand extension would refer to extension in unrelated products and in this study I will undertake this understanding of extension. Taylor (2003) has referred to them as direct and indirect stretch. Jobber (2003) has given the term brand extension to line extension whereas brand extension has been referred to as brand stretch. The current emphasis on the subject has been due to its enormous success. Consumers being the end users have become friendlier to the concept and are now accepting it as illustrated on the next page. Its obvious from this graph that consumers are becoming much friendlier to the concept then they were a decade ago and this shows the popularity of the concept and the frequency at which it has been used in the past decade. Lets get an insight into the various types of extension. 2.5.1 LINE EXTENSION OR DIRECT STRETCH Line extension is defined as being a variant of the same basic product. It might be a new flavor or a new size. Basically its a slight variation to the original product. Examples would be of Colgate. We used to have Colgate regular but now we have Colgate total, Colgate Max fresh Gel, my first Colgate for kids, Platinum, Deep clean etc. The basic purpose of this strategy is to encourage more people to use a brand. It can also be considered as a first step towards brand extension. But the only bad thing about too many variations in the products or having too many line extension is that it may confuse the user in regards to which product should he/she use. Also it may cause a cannibalization affect within the product range. 2.5.2 BRAND EXTENSION OR INDIRECT STRETCH Brand extension on the other hand would refer to extending your product range into a product category that wouldnt be commonly associated with it. A simple definition described below will illustrate my point of view. Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category. (Brandextension.org) Giles Lury in his book about Brand Watching has defined brand extension as: Brand extension is the use (and occasional misuse) of an existing brand name and equity to launch a product or service into a category or market not normally associated with that brand. (Lury, 1998) Thus in contrast to earlier scholars, who had generalized the concept of brand extension, new researchers have distinguished the concept well from line extension. 2.6 RATIONALE BEHIND USING BRAND EXTENSION Brand extension has gained a lot of popularity and is considered to be the key tool for launching new innovations. A survey was conducted by Brand gym in 2003 in which marketing directors were asked about brand extension. The following graph illustrates the response. The results indicated that 83% of the marketing directors thought that brand extension would be the main way of launching new innovation in the next two to three years. Yet research has also shown that only 50 percent of brand extension survives after the first three years. Firstly brand extension differs from line extension because where line extension offers customers more varieties or styles of the original brand in its original market, a brand extension takes an existing brand to pasture new ones. Taking Mars as an example we see that the original chocolate bar has been line extended into different styles including Mars Kingsize, Mars miniature and for a limited period Dark chocolate Mars. However when Mars launched the Mars ice cream, it entered a new market for the brand and as such had extended the brand franchise. Mars also extended into flavored milk drinks market with Mars in a bottle. The rationale behind brand extensions popularity is that its difficult and expensive to launch a completely new brand. The most often quoted statistic being that nine out of every ten new brands fail. New brands are therefore seen as a high, though sometimes high return strategy. On the other hand, brand extension is a cheaper and more reliable method of building on what already exists. Not surprisingly companies who have already invested a lot of money in creating a brand are keen to maximize its full potential. Finally it can be concluded that companies would like to leverage and thus give initial success to the new brand by exploiting the equity that has been established by the parent brand. 2.7 KELLER AND AAKERS WORK ON BRAND EXTENSION Keller and Aaker (1998) extending on their typology of product range extension and corporate brand extension have examined the impact of corporate marketing on a companys brand extension. In their research paper they have described how consumers evaluate brand extension in general and then concentrating on corporate brand extension, they have studied the impact of corporate marketing on consumer evaluation of corporate brand extension in the presence and absence of supporting product advertising. The initial research work describing product brand extension is as follows: Research on consumer responses to extensions of product brands, suggest that two key factors influence consumer evaluation. the types of association that make up the parent brand image the relationship between the parent brand and the extension product These factors affect the consumer belief about whether the new product fits as a member of the product line. In sum, the record therefore suggests that a variety of different associations for the parent brand can be transferred to an extension, assuming a basis of fit exists. Now an extension that they made in regards to brand extension was that they applied this concept to corporate brand extension. But before going further its important to know Aakers three dimensions of corporate credibility. They are: 1. Corporate expertise is the extent to which a company is thought able to competently make and sell its products and services. 2. Corporate trustworthiness is the extent to which a company is thought to be honest, dependable, and sensitive to consumer needs. 3. Corporate likability is the extent to which a company is thought likable, prestigious and interesting. This results gathered from this study have strategic implication both to the benefits/risks associated with brand extension and also to the effectiveness of brand extension. Thus a summary of the results are as follows. Firstly by showing that corporate marketing related to product innovation enhances perceptions of corporate credibility and extension fit, and thus much favorable extension evaluations, this study showed benefits for brands with reputation of high quality products. Secondly this study provided a more detailed account of particular dimensions of corporate credibility, namely corporate expertise, trust worthiness and likeability. Thus this study concluded that corporate expertise appeared to play a more influential role in evaluation of corporate brand extension than either corporate trustworthiness or likeability. Thirdly this study suggested the merits of leveraging a strong brand to introduce a new product. One advantage of using a brand extension strategy to name a new product is that a less concerted advertising effort may be necessary. To the extent that brands extensions are able to leverage existing parent brand associations in consumer memory, a company should find it easier to achieve brand image with an extension branding strategy instead of giving a new product a new name. The fact that corporate marketing activity impacted consumer evaluations of a corporate brand extension in the absence of any product specific advertising is further an empirical support for the benefit of adopting a brand extension strategy. Fourthly this study suggested that corporate marketing activity significantly influenced extension evaluations even when the extension was advertised on the basis of another image dimension point. Thus corporate image associations are more likely to transfer to an extension on the basis of the branding strategy. Lastly this study also suggested that where a company is in a situation of having a trade off between various strategies like reinforcing a strong association, strengthening a weak association or creating a new association, then it wholly depends on the situation of each of the elements to decide which strategy to choose. For example: In some cases, existing associations may be so strong that they may be better off emphasizing other information to fortify a weak or supply a missing association. 2.8 TYPES OF BRAND EXTENSION Limited work has been done on the typology of brand extension. From various research papers, books and websites that I have consulted regarding brand extension, very few have distributed brand extension into different types. (Brandextension.org) have generated the following typology of brand extension taking functional and emotional attributes of the brand into consideration. 1. Similar product in a different form from the original parent product. This is where a company changes the form of the product from the original parent product. An example is (frozen) Snickers Ice Cream Bars. The original Snickers bar is a shelf stable candy. The brand extension is a similar product, but in a different form. Jell-O Portable Pudding and Pudding Cups is Jell-O pudding in a different form and section of the store. 2. Distinctive flavor/ingredient/component in the new item. When a brand owns a flavor, ingredient or component, there may be other categories where consumers want that property. E.g. Peanut butter is a characteristic ingredient in Reeses Peanut Butter Cups candy. Chocolate is a characteristic ingredient of Hershey. Brand Extension Research identified Reeses Peanut Butter as a logical extension that capitalizes on this association. 3. Benefit/attribute/feature owned. Many brands own a benefit, attribute or feature that can be extended. E.g. Brand Extension Research showed Armor All brand was defined by automotive surface protection which can go beyond vinyl dressing. Paint needs protecting also. Arm Hammer owns a benefit of deodorizing. Their baking soda product has claimed that it removes odors from refrigerators, etc. As a result, they extended the brand into other products such as Arm Hammer underarm deodorant and cat litter deodorizer. 4. Expertise. Over time, certain brands may gain a reputation for having an expertise in a given area. Leverage can be achieved when extending into areas where this special expertise is deemed important. E.g. Hondas expertise in reliable engines led to lawn mowers, gas powered generators and a variety of other gasoline engine powered devices. What brand comes to mind when we think of baby products? Gerber. As a result of this acceptance of their expertise, they successfully launched Gerber Baby Powder, Gerber Baby Bottles, etc. Sara Lee is known for baked desserts, so why not other baked goods like bread. 5. Companion products. Some brand extensions are a natural companion to the products the company already makes. E.g. Contadina was a tomato paste and sauce brand. In brand extension research, consumers thought Contadina pasta was a logical companion product that would have the leverage of the Italian heritage of the parent. Aunt Jemima (the pancake mix brand) launched pancake syrup, as a companion to compete with Log Cabin syrup. 6. Vertical extensions. Some brand extensions are vertical extensions of what they currently offer. A brand can use their ingredient/component heritage to launch products in a more (or sometimes less) finished form. E.g. Nestlà ©s Toll House chocolate refrigerated cookies is an example. Most Toll House chocolate chips are used in cookies, so why not make a brand of Toll House chocolate chip cookies. Mrs. Fields Cookies were ready-to-eat. They offered frozen cookie dough, moving backwards as a vertical extension. Rice Krispies has always been used in kids treats. Kellogg offered Rice Krispies Treats ready-to-eat. 7. Same customer base. Many brand extensions represent a marketers effort to sell something else to its customer base. This works particularly well when that customer base is large and to some extent captive. E.g. VISA launched travelers checks directed to its credit card customers. 8. Designer image/status. Certain brands convey status and hence create an image for the user. E.g. Designer clothing labels have been extended to furniture, jewellery, perfume, cosmetics and a host of other items. Some brands promote a lifestyle and can extend to items that people wear, as a badge of identifying themselves with that lifestyle. The above-mentioned typology is quite useful as it indicate the key areas where extension is done along with the methodology used to extend the product line. Yet it must be said that not all research work would agree with this typology as it is felt that certain types confuses line and brand extension or in ways generalizes it more to extension rather than brand extension. For example: Adding attribute to the products in the same product line would be line extension and not brand extension. Still it is a good base for my research work and also for further research into the typology of brand extension. Aaker (1998) has described two types brand extension differentiating the concept on a corporate level. The first type described by him is product brand extension. A company makes a product brand extension when it uses an existing brand name distinct from its corporate name to introduce a new product outside its current product offering. With product brand extension consumers are often completely unaware of the company involved. The second type described by him is corporate brand extension. A corporate brand extension is one which relies on the corporate name to launch a new product . A corporate brand extension clearly identifies an organization with a product, and so evokes different reactions from consumers than a product brand extension. A corporate brand may create associations in consumers minds that reflect the values, program, and activities of the firm. 2.9 SEQUENTIAL STRETCHING AND UMBRELLA BRANDING Extension to parent brand is usually a sequential process in which brands are initially line extended and then brand extended. This sequential stretching of brands leads to the formation of a whole family of brands thus giving rise to the concept of Umbrella branding. As the name indicates, umbrella branding refers to extension of a parent brand into a variety of products such that a whole range of products would come under the same brand. Taylor (2003) has divided the sequential extension into three main steps namely core brand extension, direct stretch and indirect stretch. I will illustrate the concept using Dove as an example. Brand extension was a key driver of Doves explosive growth during the 1990s. Coupled with geographic expansion, it helped grow sales fivefold, to almost $1 billion. The brand continues to grow at 20 percent per year and is well on its way to hitting the $ 2 billion mark in the next few years. Let go through the sequential process and apply it to Dove. The first and most crucial step to be noted is that Dove didnt extend its product line until it had achieved the following two things. †¢ A strong bar business had been built †¢ The brand had satisfactory scores on attributes rating for mildness and moisturizing. An important thing to be noted is that extension took place only after Dove had secured its soap bar business and had improved it. Thus once there was strength in the brand, it extending it to other products. Stretching went through the following stages. Stage One: Core Range extensions: Dove remained a product brand with a single format at this stage. It extended (line extension) its product range by adding new versions such as sensitive skin that now accounts for up to a third of sales. Further growth of the bar through product and pack innovation, remains a key source of profitable growth. Diagrammatic illustration of this step would indicate the extension into the two types. Stage Two: Direct stretch: In this stage extension is done into markets that are quite relevant to the product line. In the case of dove, it extended its product range into bath and shower products. Yet till now dove is focused on personal washing. The key reasons of dove extension at this stage were strong product delivery and innovative packing that differentiated them from other products in the range. The following diagram illustrates their stretch in to shower and bath products. Stage three: Indirect stretch: Capitalizing on their skin care outlook, Dove decided to be ambitious and to move beyond the washing and bathing market. Although they started off selectively, they introduced products like deodorants and hair gels etc. that were once again a big success. This process of broadening a product range is referred to as Umbrella Branding as illustrated by the diagram given below. The dove success has been due to consistent marketing and a consistent communication campaign. Consistency has been a key part of building brand identity and has been an additional glue to tie together the extension. 2.10 BENEFITS AND DRAWBACKS ASSOCIATED WITH BRAND EXTENSION Brand extension being the most popular mean of brand growth has some surprising statistics. Success rate of brand extension is hard to find, especially as what constitutes a success varies enormously. Yet a survey conducted by OCC using a simple and effective definition of success (still being on shelf after six years after launch) found out that 50 percent of all brand extension fails. This figure is certainly an eye opener for most companies as half of the product fails using brand extension. Taylor (2003) has associated this huge failure figure due to Brand ego tripping and also gives effective steps to avoid it. But before we go into the detail of this concept, lets look into the benefits and drawbacks of brand extension. 2.10.1 BENEFITS ASSOCIATED WITH BRAND EXTENSION The remarkable popularity of the concept over the last decade is a confirmation of the fact that there are marked benefits that can be associated with brand extension. Taylor (2003) has described the consumer benefits of brand extension in which he has identified consumer knowledge, consumer trust and lower cost as the major benefits of brand extension. Tauber (1988) has differentiated the benefits on the basis of efficiency and effectiveness emphasizing more on the cost benefits. An existing strong brand promotes a new product or service as there is less need to create awareness and imagery. Thus in a way awareness is already present and the only thing left is

American And Nigerian Culture Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  American and Nigerian cultures are alike in some aspects of life, while being dissimilar in other aspects. This idea is clearly exemplified when one compares their own experience and knowledge of culture in America to that description and portrayal of Nigerian culture as seen through Buchi Emecheta's novel, The Wrestling Match.   Ã‚  Ã‚  Ã‚  Ã‚  Both of our societies can be looked at as parallel in how teenagers are typically stereotyped, rivalry among towns/villages, and the attainment of manhood or maturity through experiences or accomplishments.   Ã‚  Ã‚  Ã‚  Ã‚  Contrary to the similarity of the cultures, there are also some basic differences. One of the main distinctions is that we live in a technologically advanced empire while Emecheta shows us that Nigerians are more typically a primitive nation.   Ã‚  Ã‚  Ã‚  Ã‚  No matter in what culture you find teenagers, they will probably be stereotyped. This is evident in the novel as well as in our own culture. For example, the Akpei people (neighbors to the nearby Igbuno village) have found that someone has fished and trampled in their stream. ( This is a very bad thing because the vegetation and fish are now no longer available) The blame immediately lands upon the Uma aya Biafra, or teenagers of Igbuno. There is no question, it is just assumed that teenagers were involved. (Unfortunately, Uche, a teenager from Igbuno, has committed this hei...

Capitalism and Feudalism: The Lowell System Essay -- Economics Norma R

Capitalism and Feudalism: The Lowell System During the mid-nineteenth century, as the industrial revolution was taking shape, so too, was an economic system in Lowell, Massachusetts. The system involved a series of textile mills, which hired mostly women from rural towns, which were slowly giving way to the large cities as a result of industrialization. The textile mills hired the women to work long hours in brutal, often dangerous conditions, and many paid high rent to company boardinghouses. This may sound like feudalism, but it was, in fact, an example of oligarchical capitalism. However, it shares features with the conditions in "Norma Rae" and "Matewan". In the Lowell System, power was concentrated within the textile companies, creating an oligarchy. The situation is best described by Thomas Dublin, in his book Women at Work when he writes that 'the textile corporations in Lowell...adopted a unified set of policies from the outset. They shared waterpower rights, technological developments, labor policies, and marketing strategies.' (Thomas Dublin, Women at Work. p. 10) The logic behind the co-operation of the different companies was that the 'textile firms in this period were owned and directed by a narrow circle of capitalists, known collectively as the Boston Associates'. (Thomas Dublin, Women at Work, p. 10) This created an oligarchical situation because there was collective control by the companies. The oligarchy existed within a capitalist system, however, because the workers had a choice of which company to work for and the textile mills were not the only places to work. The textile industry was a major industry at the time. Ho wever, one could still lead a normal life without working in the textile mill. Furth... ...ning company to yield to their demands for better working conditions. The Lowell System shows features similar to both "Matewan" and "Norma Rae" because it occurred in a period in American history when the economy was in transition from feudalism to capitalism, allowing it to retain some features of feudalism while manifesting the early stages of modern capitalism. This is the reason why the Lowell System shares features with both "Norma Rae" and "Matewan". It also accounts for the fact that the system was an oligopoly. The companies did not have a complete monopoly over the labor force, however they had concentrated power. As the economy of the United States evolved, the Lowell System became less feudal and more capitalist, and evolved into situations similar to "Norma Rae". 1. Dublin, Thomas. Women at Work. 1979, Columbia University Press, New York. p. 87

Julius Caesar :: essays research papers fc

Julius Caesar   Ã‚  Ã‚  Ã‚  Ã‚  Themes play an integral role in the play Julius Caesar. The actions and the way that the characters express themselves define the themes in the play. The play is not comprised of one or two themes, but rather made up of an innumerable amount of them. A major theme in the play is fate. Fate is found from the smallest instance such as a dream to the prediction from a soothsayer. Another theme that is prevalent in the play is betrayal. Julius Caesar is betrayed along with many other people. Love is another theme that appears many times throughout the play. The love that is demonstrated in this play ranges from love between a husband and wife to the love for a country. Trust is another common theme in this play. Many characters in this play have trust in each other. They trust each other with their lives resulting in the death of many people. Loyalty is the final theme that is evident in this play. There are people who are loyal, and then there are people who are not loyal. The actions that these different characters make create a multitude of themes.   Ã‚  Ã‚  Ã‚  Ã‚  The theme that stands out the most in this play is fate. There is no doubt that there is divine intervention in this play. The destiny of many of the characters in this play have been prearranged because there are so many predictions or visions of the future that actually come true. For example, the soothsayer predicted that Julius Caesar was going to die on the Ides of March. (I. ii ll. 11-20) He did not make this prediction after he heard that Caesar was going to be assassinated, or the night before when everyone knew that he was going to die. He made this prediction many months in advance. The soothsayer knew that Caesar was going to die, because it was Caesar’s fate to die on the Ides of March. It has been predetermined that it was Caesar’s time to go on the Ides of March. Another instance of fate relating to the death of Caesar was the night before he died. His wife had an awful dream predicting that her husband was going to die in the house of the Senate the next day. Although Calpurnia told her husband of this, he chose to ignore resulting in his assassination. This is a strong example of fate because frequently throughout time people see the future in dreams.

A Game of Thrones Chapter Two

Catelyn Catelyn had never liked this godswood. She had been born a Tully, at Riverrun far to the south, on the Red Fork of the Trident. The godswood there was a garden, bright and airy, where tall redwoods spread dappled shadows across tinkling streams, birds sang from hidden nests, and the air was spicy with the scent of flowers. The gods of Winterfell kept a different sort of wood. It was a dark, primal place, three acres of old forest untouched for ten thousand years as the gloomy castle rose around it. It smelled of moist earth and decay. No redwoods grew here. This was a wood of stubborn sentinel trees armored in grey-green needles, of mighty oaks, of ironwoods as old as the realm itself. Here thick black trunks crowded close together while twisted branches wove a dense canopy overhead and misshappen roots wrestled beneath the soil. This was a place of deep silence and brooding shadows, and the gods who lived here had no names. But she knew she would find her husband here tonight. Whenever he took a man's life, afterward he would seek the quiet of the godswood. Catelyn had been anointed with the seven oils and named in the rainbow of light that filled the sept of Riverrun. She was of the Faith, like her father and grandfather and his father before him. Her gods had names, and their faces were as familiar as the faces of her parents. Worship was a septon with a censer, the smell of incense, a seven-sided crystal alive with light, voices raised in song. The Tullys kept a godswood, as all the great houses did, but it was only a place to walk or read or lie in the sun. Worship was for the sept. For her sake, Ned had built a small sept where she might sing to the seven faces of god, but the blood of the First Men still flowed in the veins of the Starks, and his own gods were the old ones, the nameless, faceless gods of the greenwood they shared with the vanished children of the forest. At the center of the grove an ancient weirwood brooded over a small pool where the waters were black and cold. â€Å"The heart tree,† Ned called it. The weirwood's bark was white as bone, its leaves dark red, like a thousand bloodstained hands. A face had been carved in the trunk of the great tree, its features long and melancholy, the deep-cut eyes red with dried sap and strangely watchful. They were old, those eyes; older than Winterfell itself. They had seen Brandon the Builder set the first stone, if the tales were true; they had watched the castle's granite walls rise around them. It was said that the children of the forest had carved the faces in the trees during the dawn centuries before the coming of the First Men across the narrow sea. In the south the last weirwoods had been cut down or burned out a thousand years ago, except on the Isle of Faces where the green men kept their silent watch. Up here it was different. Here every castle had its godswood, and every godswood had its heart tree, and every heart tree its face. Catelyn found her husband beneath the weirwood, seated on a moss-covered stone. The greatsword Ice was across his lap, and he was cleaning the blade in those waters black as night. A thousand years of humus lay thick upon the godswood floor, swallowing the sound of her feet, but the red eyes of the weirwood seemed to follow her as she came. â€Å"Ned,† she called softly. He lifted his head to look at her. â€Å"Catelyn,† he said. His voice was distant and formal. â€Å"Where are the children?† He would always ask her that. â€Å"In the kitchen, arguing about names for the wolf pups.† She spread her cloak on the forest floor and sat beside the pool, her back to the weirwood. She could feel the eyes watching her, but she did her best to ignore them. â€Å"Arya is already in love, and Sansa is charmed and gracious, but Rickon is not quite sure.† â€Å"Is he afraid?† Ned asked. â€Å"A little,† she admitted. â€Å"He is only three.† Ned frowned. â€Å"He must learn to face his fears. He will not be three forever. And winter is coming.† â€Å"Yes,† Catelyn agreed. The words gave her a chill, as they always did. The Stark words. Every noble house had its words. Family mottoes, touchstones, prayers of sorts, they boasted of honor and glory, promised loyalty and truth, swore faith and courage. All but the Starks. Winter is coming, said the Stark words. Not for the first time, she reflected on what a strange people these northerners were. â€Å"The man died well, I'll give him that,† Ned said. He had a swatch of oiled leather in one hand. He ran it lightly up the greatsword as he spoke, polishing the metal to a dark glow. â€Å"I was glad for Bran's sake. You would have been proud of Bran.† â€Å"I am always proud of Bran,† Catelyn replied, watching the sword as he stroked it. She could see the rippling deep within the steel, where the metal had been folded back on itself a hundred times in the forging. Catelyn had no love for swords, but she could not deny that Ice had its own beauty. It had been forged in Valyria, before the Doom had come to the old Freehold, when the ironsmiths had worked their metal with spells as well as hammers. Four hundred years old it was, and as sharp as the day it was forged. The name it bore was older still, a legacy from the age of heroes, when the Starks were Kings in the North. â€Å"He was the fourth this year,† Ned said grimly. â€Å"The poor man was half-mad. Something had put a fear in him so deep that my words could not reach him.† He sighed. â€Å"Ben writes that the strength of the Night's Watch is down below a thousand. It's not only desertions. They are losing men on rangings as well.† â€Å"Is it the wildlings?† she asked. â€Å"Who else?† Ned lifted Ice, looked down the cool steel length of it. â€Å"And it will only grow worse. The day may come when I will have no choice but to call the banners and ride north to deal with this King-beyond-the-Wall for good and all.† â€Å"Beyond the Wall?† The thought made Catelyn shudder. Ned saw the dread on her face. â€Å"Mance Rayder is nothing for us to fear.† â€Å"There are darker things beyond the Wall.† She glanced behind her at the heart tree, the pale bark and red eyes, watching, listening, thinking its long slow thoughts. His smile was gentle. â€Å"You listen to too many of Old Nan's stories. The Others are as dead as the children of the forest, gone eight thousand years. Maester Luwin will tell you they never lived at all. No living man has ever seen one.† â€Å"Until this morning, no living man had ever seen a direwolf either,† Catelyn reminded him. â€Å"I ought to know better than to argue with a Tully,† he said with a rueful smile. He slid Ice back into its sheath. â€Å"You did not come here to tell me crib tales. I know how little you like this place. What is it, my lady?† Catelyn took her husband's hand. â€Å"There was grievous news today, my lord. I did not wish to trouble you until you had cleansed yourself.† There was no way to soften the blow, so she told him straight. â€Å"I am so sorry, my love. Jon Arryn is dead.† His eyes found hers, and she could see how hard it took him, as she had known it would. In his youth, Ned had fostered at the Eyrie, and the childless Lord Arryn had become a second father to him and his fellow ward, Robert Baratheon. When the Mad King Aerys II Targaryen had demanded their heads, the Lord of the Eyrie had raised his moon-and-falcon banners in revolt rather than give up those he had pledged to protect. And one day fifteen years ago, this second father had become a brother as well, as he and Ned stood together in the sept at Riverrun to wed two sisters, the daughters of Lord Hoster Tully. â€Å"Jon . . . † he said. â€Å"Is this news certain?† â€Å"It was the king's seal, and the letter is in Robert's own hand. I saved it for you. He said Lord Arryn was taken quickly. Even Maester Pycelle was helpless, but he brought the milk of the poppy, so Jon did not linger long in pain.† â€Å"That is some small mercy, I suppose,† he said. She could see the grief on his face, but even then he thought first of her. â€Å"Your sister,† he said. â€Å"And Jon's boy. What word of them?† â€Å"The message said only that they were well, and had returned to the Eyrie,† Catelyn said. â€Å"I wish they had gone to Riverrun instead. The Eyrie is high and lonely, and it was ever her husband's place, not hers. Lord Jon's memory will haunt each stone. I know my sister. She needs the comfort of family and friends around her.† â€Å"Your uncle waits in the Vale, does he not? Jon named him Knight of the Gate, I'd heard.† Catelyn nodded. â€Å"Brynden will do what he can for her, and for the boy. That is some comfort, but still . . . â€Å" â€Å"Go to her,† Ned urged. â€Å"Take the children. Fill her halls with noise and shouts and laughter. That boy of hers needs other children about him, and Lysa should not be alone in her grief.† â€Å"Would that I could,† Catelyn said. â€Å"The letter had other tidings. The king is riding to Winterfell to seek you out.† It took Ned a moment to comprehend her words, but when the understanding came, the darkness left his eyes. â€Å"Robert is coming here?† When she nodded, a smile broke across his face. Catelyn wished she could share his joy. But she had heard the talk in the yards; a direwolf dead in the snow, a broken antler in its throat. Dread coiled within her like a snake, but she forced herself to smile at this man she loved, this man who put no faith in signs. â€Å"I knew that would please you,† she said. â€Å"We should send word to your brother on the Wall.† â€Å"Yes, of course,† he agreed. â€Å"Ben will want to be here. I shall tell Maester Luwin to send his swiftest bird.† Ned rose and pulled her to her feet. â€Å"Damnation, how many years has it been? And he gives us no more notice than this? How many in his party, did the message say?† â€Å"I should think a hundred knights, at the least, with all their retainers, and half again as many freeriders. Cersei and the children travel with them.† â€Å"Robert will keep an easy pace for their sakes,† he said. â€Å"It is just as well. That will give us more time to prepare.† â€Å"The queen's brothers are also in the party,† she told him. Ned grimaced at that. There was small love between him and the queen's family, Catelyn knew. The Lannisters of Casterly Rock had come late to Robert's cause, when victory was all but certain, and he had never forgiven them. â€Å"Well, if the price for Robert's company is an infestation of Lannisters, so be it. It sounds as though Robert is bringing half his court.† â€Å"Where the king goes, the realm follows,† she said. â€Å"It will be good to see the children. The youngest was still sucking at the Lannister woman's teat the last time I saw him. He must be, what, five by now?† â€Å"Prince Tommen is seven,† she told him. â€Å"The same age as Bran. Please, Ned, guard your tongue. The Lannister woman is our queen, and her pride is said to grow with every passing year.† Ned squeezed her hand. â€Å"There must be a feast, of course, with singers, and Robert will want to hunt. I shall send Jory south with an honor guard to meet them on the kingsroad and escort them back. Gods, how are we going to feed them all? On his way already, you said? Damn the man. Damn his royal hide.†