micheline brand extension
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Title: micheline brand extension

Essay Details:

Subject: Business
Author: William L
Date: April 19, 2011
Level: University
Grade: A
Length: 2 / 364

Essay text:

Brand extension strategy Strength & Weakness The brand problem The brand challenge Recommendation Primary (manufacturing industry) Secondary (publishing industry) Tires (car, van, motorcycle, airplane…) Travel assistant services (travel guides, road maps, online mapping) Advantages Get more profit Enter new product categories more easily, instant recognition & faster acceptance, quickly gain market share Constitute brand territory for further brand extension Strengthen brand image Save high advertising cost usually required to familiarize consumer with a new brand Risks Difficult to manage if the new launch is in a very different market from the original brand & new target customers don’t value the brand’s associations ?Brand extension may easily fail In case of failure ?harm consumer attitudes towards the other products carrying the same brand name Lose brand name’s special positioning in the customer’s mind Confuse the image of the main brand Dilution of brand image Strengths The world second largest tires manufacturing – over 120 years history Strong brand image Easily recognized by symbolic differentiation Quality product Weaknesses Trouble with the brand extension The brand extension is facing with publishing in accurate information Effect on the brand’s central values (safety, performance) ? Reduce the brand image Competition with GaultMillau, direct competitor in the brand extension market How to strengthen the brand image in the problem of the brand extension situation? Product innovation and differentiation Strengthen the brand extension: adjust to fit the brand’s central value: Make sure all published info is correct Partnership with mobile network/social network to bring Michelin’s road maps and travel guides to mobile phones and online community...

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