PRESERVE THE LUXURY OR
EXTEND THE BRAND
Harvard Business Review
Stakeholders
 Gaspard de Sauveterre - The owner of Chateau de
Vallois - Famous wine producing estate
 Claire de Valhuber...
• Chateau de Vallois produces two types of
wine
• Sells to distributors and importers and not
directly to consumers to kee...
Claire wants to enter the affordable luxury market
selling directly to consumers to open a new
customer base - Extend the ...
Reasons for Extending the
Brand
 Claire noted that younger wine
enthusiasts were being priced out of
high end French wine...
Reasons for Preserving the
Brand
 Additional costs incurred on low-priced
wine in marketing and distribution
 New produc...
SHOULD CHÂTEAU DE VALLOIS BEGIN
PRODUCING A MORE-AFFORDABLE
WINE?
Case Study - Horlicks
 First invented to substitute milk as baby food
 It’s almost a 137 year old brand
 From nutrition...
Brand Extension
Line extension
WHY HORLICKS WAS SUCCESSFUL IN
EXTENDING THE BRAND WHILE
PRESERVING IT’S IDENTITY ?
Their products were
consistent with the
image of the core
brand offering
same functional
benefits
Identified with the key benefit and value proposition of their product and
then executed their marketing campaigns – “Tall...
Case Study - PONDS
Communicate message of ‘soft and caring’ beauty products
through their marketing campaigns like ‘Googly...
WHY PONDS BRAND EXTENSION FROM
BEAUTY PRODUCTS TO TOOTHPASTE
WAS UNSUCCESSFUL ?
 Consumers viewed pond’s as a soft and skin
friendly beauty product
 Toothpaste creates the image of a product that is
u...
So the brand extension was a failure due to clashing
images of brands in the mindset of consumers.
Conclusion
• Brand Extension has strategic implication on brands sales
curve. It may result in enormous growth or put the ...
Created by:
Mohd Wasil
IIT Delhi
During Internship by
Sameer Mathur, IIM
Lucknow
Preseve the luxury or extend the brand
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Preseve the luxury or extend the brand

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Preseve the luxury or extend the brand

  • 1. PRESERVE THE LUXURY OR EXTEND THE BRAND Harvard Business Review
  • 2. Stakeholders  Gaspard de Sauveterre - The owner of Chateau de Vallois - Famous wine producing estate  Claire de Valhubert – Gaspard’s granddaughter  Francois de Sauveterre – Gaspard’s son  Jean Paul Oudineaux – Gaspard’s estate manager  Negotiants – Merchants who purchase the wine and aid in distribution
  • 3. • Chateau de Vallois produces two types of wine • Sells to distributors and importers and not directly to consumers to keep their wine rare and vintage
  • 4. Claire wants to enter the affordable luxury market selling directly to consumers to open a new customer base - Extend the brand
  • 5. Reasons for Extending the Brand  Claire noted that younger wine enthusiasts were being priced out of high end French wines  Claire wanted to capitalize on her vintage wine brand by targeting young consumers
  • 6. Reasons for Preserving the Brand  Additional costs incurred on low-priced wine in marketing and distribution  New product might result in dilution of original brand
  • 7. SHOULD CHÂTEAU DE VALLOIS BEGIN PRODUCING A MORE-AFFORDABLE WINE?
  • 8. Case Study - Horlicks  First invented to substitute milk as baby food  It’s almost a 137 year old brand  From nutritional drink it positioned itself as “pleasurable nourishment” by launching different exciting flavours
  • 9. Brand Extension
  • 10. Line extension
  • 11. WHY HORLICKS WAS SUCCESSFUL IN EXTENDING THE BRAND WHILE PRESERVING IT’S IDENTITY ?
  • 12. Their products were consistent with the image of the core brand offering same functional benefits
  • 13. Identified with the key benefit and value proposition of their product and then executed their marketing campaigns – “Taller, Stronger, Sharper” campaign, “Epang Opang Japang”, “Badlo Apne Bachpan ka Size”
  • 14. Case Study - PONDS Communicate message of ‘soft and caring’ beauty products through their marketing campaigns like ‘Googly Woogly Woosh’
  • 15. WHY PONDS BRAND EXTENSION FROM BEAUTY PRODUCTS TO TOOTHPASTE WAS UNSUCCESSFUL ?
  • 16.  Consumers viewed pond’s as a soft and skin friendly beauty product  Toothpaste creates the image of a product that is used to fight germs and associate medicinal benefit with it  Functional benefit of both the brands didn’t remain the same. Beauty cream/face wash is for external use and it’s major attribute is fragrance. While major attribute of toothpaste is taste
  • 17. So the brand extension was a failure due to clashing images of brands in the mindset of consumers.
  • 18. Conclusion • Brand Extension has strategic implication on brands sales curve. It may result in enormous growth or put the asset of firm at risk • Brand Extension should be consistent with the image of the core brand which has been already established in the consumer mind • Market Research is of paramount significance for firms going for brand extension • Adequate marketing support and efficiency of distribution channel is of key importance in the extension strategy
  • 19. Created by: Mohd Wasil IIT Delhi During Internship by Sameer Mathur, IIM Lucknow

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