Magazine article Marketing

Brand-Building Is Truly a la Mode

Magazine article Marketing

Brand-Building Is Truly a la Mode

Article excerpt

The news this week from two of Britain's biggest consumer goods brand owners, HP and Golden Wonder, should give heart to anyone who thought marketing's glory days had gone for good.

For five years now, brand and product managers have found themselves working on an ever-increasing variety of brand extensions. Why, their employers argued, take the risk of launching a new brand when we can come up with a sugar-free, low-fat or tangerine-flavoured variant of a brand we already know the public likes?

It's an attractive route to take when times are hard. But, as HP's Andrew Marsden says in our front-page story, it's no substitute for genuine new product development.

All too often, the incremental business generated by a brand extension is minimal: rather than buying both the original and a variant, consumers simply pick the one they want without increasing their spend. The brand owner, meanwhile, is paying for the extra development, packaging and promotional costs involved.

For just that reason, both HP and Golden Wonder are cutting away the layers of extensions which have built up around their core brands. In their place comes a renewed commitment to genuine NPD and a concentration of marketing efforts on the brands which really count. …

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