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Q4 Jacqueline, Wei Ying, Ying Ting, Xilynn

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Q4 Jacqueline, Wei Ying, Ying Ting, Xilynn

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Nike

Reinvent

Nike launched Nike iD in 2012, it offers 31 fully customization parts on all Nike shoes such as base, lining, accent, stitching and etc in 82 different materials. It is successful in many countries such as Japan, China and Australia, Italy and Spain online and offline. This reinvention increased the annual sales 22% higher and 30% revenue growth that they first targeted. Nike iD is always very relevant to millennial because they are always demanding for products that can be highly customizable.

Adidas

B2B – Superstar, Stan Smith, Adidas Original

Recently Adidas has been focusing on back to basic attire such as the old school Adidas logo jacket, Adidas original and newly designed Stand Smith and Super Star. After going back to basic Adidas sales have increased 22% on currency neutral basis in North America.

KFC (USA)

Reinvent

$5 Fill up boxes that allow people to customise their food, from 3 pieces tenders to 2 pieces drum and thigh and etc rather than that standard set that customer cannot choose what they want. Because KFC realised that millennial customer preferences are changing as they prefer boneless meat, teenager prefers meals that come with dipping sauces wherea2s the older generation prefer meat on the bone. The sales have increased 10% of same-store sales in the first two-quarters.

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Q3. Identify a fading brand. What suggestions can you offer to revitalize its brand equity? Try to apply the different approaches suggested in this chapter. Which strategies would seem to work best?

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Q3. Identify a fading brand. What suggestions can you offer to revitalize its brand equity? Try to apply the different approaches suggested in this chapter. Which strategies would seem to work best?

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Koh Sum Yee, Chin Ai Qi, Amanda Woo
Roxy

Product Failure – Beach wear that doesn’t suit the local audience daily attire. Needs to reposition their clothing line in the market.

How:-
1. Expanding Brand Awareness:

-          Beat the heat:
New and completely different ways to use the brand. Introduce new line of clothing for all race that is thin and light at the same time which feels like a beach wear. This would suitable for the Malaysian crowd as its summer 365 days a year.

2. Improve Brand Image:

-          Identify target market:

Roxy targets a niche market which is surfing women only. We should still retain this market but also expand to the larger audience as there are not many surfers in Malaysia. We need to attract new and younger audience who could wear their clothing as daily attire to beat the heat.

-          Reposition the brand:
Recruit Key Opinion Leaders to style with their clothing line, reposition the brand to suit not only for the surfer/bikini body crowd but also for normal daily wear.

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Identify a fading brand. What suggestions can you offer to revitalize its brand equity? Try to apply the different approaches suggested in this chapter. Which strategies would seem to work best?

Nokia

Increase the publicity of the brand again through more advertisements such as billboards, cinema, TV-Commercials, Magazine etc.

Emphasize the strength of Nokia technology such as long life battery, reliability, to fit in modern and minimalistic design that can meet the customers wants.

Improve partnerships with applications to increase the amount of offered apps in the windows-store, offer more desirable apps.

As the brand focuses on stable, damage proof phones since the beginning, this is now a neglected segment and therefore they should focus on their strength again and try to enter this specific market à attract new customers

Strategy: refresh old sources of brand equity!

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Q2 CHEH CARLS MAY, CHAW YONG XIN, GAN LAY SAN 

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Q2 CHEH CARLS MAY, CHAW YONG XIN, GAN LAY SAN 

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Mont Blanc

It may be successful for Mont Blanc to propose such brand extensions because it has high linkage with the parent brand. They position their accessories as having high quality and are made of unique craftmanship. Mont Blanc is famous for its superb quality and technology in creating their fountain pen, that’s why people will tend to associate mont blanc’s accessories as having high quality too.

Evian

It may create a successful brand extension because Evian is a high-quality water brand and they are always associated closely with health and wellbeing. Hence, their high-end water goes hand in hand with high-end spa.

Starbucks

We don’t think it will be successful for Starbucks to execute such proposed brand extensions because production and filming are not related to what Starbucks is doing right now. It has no relation between the original brand and the extension at all. Hence, consumers may not have positive associations for Starbucks’s new proposed brand extensions.

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Q2 How successful do you predict these recent proposed extensions will be? why?

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Q2 How successful do you predict these recent proposed extensions will be? why?

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Marcus, Jason, Lisa, Alexis
a. Mont Blanc
We think that Mont Blanc's extension can be a success because of their high brand awareness which creates high impression among the consumers. Besides that, people who choose to purchase Mont Blanc items are willing to spend more for luxurious products are for status symbol. Other than that, Mont Blanc brand extension is still in the purpose of fulfilling the lifestyle needs. Therefore, the brands extension is known to be 'Line Extension".

b. Evian
Evian's brand extension will be successful because the people who purchase Evian are willing to spend their money on the best quality in the product category. Other than that, Evian’s facial spray has also been in the market for some time which indicates its sustainability in the market against its competitors. Last but not least, the people who spend on Evian products are most likely willing to spend money on self-pampering spa sessions that use high quality water. Evian's brand extension is known to be 'Category Extension' where they extended their brand and product to fulfil peoples' different needs by remaining the use of water.

c. Starbucks
As for Starbucks, we don't think they will be successful in terms of extending their brand into the different industry because of the different nature of the services. Starbucks was famous for their coffee long time ago, if they planned to extend their brand into film production and promotion industry, they are putting themselves into risk as they have no any related experience to deal with the potential risk they are going to face. Moreover, it will create a sense of confusion where people will think that Starbucks will stress their coffee in their films as product placement which people might feel annoying to this. Therefore, people will generate the negative feeling or experience towards Starbucks.

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Q4. Try to think of additional examples of brands that adopted either a back-to-basics or a reinvention revitalization strategy. How well did the strategies work? 

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Q4. Try to think of additional examples of brands that adopted either a back-to-basics or a reinvention revitalization strategy. How well did the strategies work? 

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Lika, Farras, Ainash
Harley-Davidson (back-to-basics)

The company has twice narrowly escaped bankruptcy but is today one of the most-recognized motor vehicle brands in the world. Although consumers loved the brand, sales were depressed by product quality problems.

- Harley returned by improving manufacturing processes.
- Harley also developed a strong brand community, called the Harley owner group (HOG).

- HOG sponsors bike rallies, charity rides, and other motorcycle events.

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Q1. Do you think Virgin's brand is overextended? What are the arguements for or against?

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Q1. Do you think Virgin's brand is overextended? What are the arguements for or against?

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Yes, it is overextended.

Reason being against:
• Confuses customers with too much brand extensions (banking, mobile, megastore, media, etc)
• Dilutes brand meaning (it was initially established as an airline brand but later on ventured into different industries)
• Diminishes identification with one brand category (originally an airline but tries to extend itself into many different categories)

Reason for:
• Virgin can generate more revenues from different sectors, that is if the brand extensions are perceived as reliable by the consumers and they will buy & use their products/ services.