Brand extension
Consider Innovation as the final style and way to compete in the market and the most intellectual asset for firms. Innovation and Brand Extension is all involved with helping brands develop new services and new products in the market and expand new channels. Most companies have benefited from the brand extension. The extended brand has the potential to be highly accepted in the market and generate positive spillover effect on the parent brand which mostly depends on how the customers view the parent brand. The new brand may improve customers experience, attract new customers and increase purchase frequency for both the parent brand and the extended brand. However, the extended brand can influence the market negatively affecting the sales of the two brand. It’s more important to have research on how the new brand can change the current demand of the parent brand. The work will provide analysis of a given brand in the market and a new Innovative brand extension.
Marlboro is a cigarette brand in America, formed during 1994 which and founded as women cigarette was later switched its eye to men (Tharakan, 2019). The company is the best and well known for selling cigarette due to its active advertising strategies (Young & Rubicam, 2000). The company has a brand value of 21.9 billion dollars approximately selling over 420 billion cigarettes annually worldwide (Tharakan, 2019). Marlboro brand has proven a steady increase concerning worldwide brand value. The company is famous for using marketing skills and has an association with premium sports thus is the top brand in the USA. Don't use plagiarised sources.Get your custom essay just from $11/page
The innovative brand extension for the Marlboro is spirits. The brand should be named Marlboro whiskey. They should have a unique design of the bottle which will attract the consumers. The brand should be coded with the Marlboro colors and branded different names for different whiskey; Marlboro medium, light, ultra-light, and menthol.
Spirits continue to swipe market share from beer in USA with hitting sale of US$26.2 billion. The sales are both domestic and exported (Gallacher, 2019). The main reason for this new extension brand is because spirits are the most selling in the market. Marlboro having spirits extensions branded with the Marlboro cigarettes label will mostly target the Marlboro consumers, and they will feel favored with spirits products, flavored with their cigarette products. Marlboro advertising skill will help high favor the spirit brand as it will get noticed in the market.80% to 95% of alcoholics smoke cigarette, and the company sales are rate to billions of sales; thus they can attract most of their cigarette consumers to like their spirits products (“Alcohol and Tobacco – Alcohol Alert No. 39-1998”, 2019).
Majority of the beverages sold in bars and restaurants are beer and spirits (Gallacher, 2019). Whiskeys remain to be the most ordered spirits where Jameson whiskey is the most selling whiskey. The Marlboro whiskey as it becomes more noticed by the Marlboro parent brand consumers it will hit to the most selling products thus they will highly compete with the Jameson whiskey
The new Marlboro whiskey with time can rate to be the most selling as per the research provided. The parents brand always make way for the extended brand in the market thus favoring the company and increasing its sales. There is a high possibility of the new brand to hit in the market due to the parent brand which is selling very well. The new brand may also affect the demand of the parent brand positively.
References
Alcohol and Tobacco – Alcohol Alert No. 39-1998. (2019). Retrieved from https://pubs.niaaa.nih.gov/publications/aa39.htm
Gallacher, R. (2019). The Most Popular Beer & Liquor Brands of 2018. Retrieved from https://www.bevspot.com/blog/2018/08/01/the-most-popular-beer-liquor-brands-of-2018/
Tharakan, K. (2019). The Marlboro Man Misses His Lung – StrategyPeak. Retrieved from https://strategypeak.com/the-marlboro-man-misses-his-lung/
Young, J. O. & Rubicam, R. (2000). Brand Asset Valuator. Young &
Rubicam Inc.