Harley Davidson Perfume

DISCUSSION QUESTIONS

1. Which aspects should be considered when making a decision on brand extension? How to define values that could be transferred to new versions of product?

Companies adopt the brand extension strategy in order to facilitate the entry into new categories, as build a strong brand is a lengthy and expensive process. So the new product hits the market with the certification of a brand already recognized by the public. In this way while the brand transfers its credibility into the new category which is acting also comes off revitalized by new product.

However, brand extensions or product lines are often not enough to replace the gains made by the original products. But still, companies end up not just extending the brands of their products, but also to themselves in an attempt to leverage its recognition in the category, or the economic exploitation of related categories.

There are four steps that must be followed to make a successful brand extension, and they are, Determine the value of the current brand, define the categories for the new product and how it will relate to existing products, test the new positioning with consumers and develop and implementation plan.

1. What is the greatest danger when applying brand extension, that is, when using the name of the already established brand for new version of products or for various other products?

Certainly we have to take precautions and we must consider numerous points before the development of the brand extension strategy. The brand cannot be extended without deep reflection of his personality and his vision by the consumers. It is a delicate act, hence the precautions constitute a sound methodology of studies on the potential of the extension. Obviously the greatest danger when applying brand extension is when using the name of the brand for various other products that are unrelated to its core business, placing the essence of the brand at risk.

1. Is it having more or less products that are branded by the same brand that help strengthening and long term success of the brand? Give explanations and use example if possible.

Brand extension is the activity to extend the use of the brand for other versions of products and services, either directly or indirectly, in order to smooth the launch of new alternatives of goods and to protect and strengthen the existing brand. Therefore, the extension of the brand image aims to take advantage of brand positioning with the consumer in order to speed up the successful launch of new products, with minimal investment in communication. However, it is a high-risk strategy, because when the core business of a brand is moved can lead to confusion in the public perception, and consumers hate confusion, they do not change and can lose focus.

So, companies shouldn’t think that more products equals to more sales, this can happen in the short-term but in the long-term can be extremely negative for the brand especially if the product is not related to the core business of the brand.

1. Is it possible to apply Harley Davidson example to other products and use “lessons learned” for other products and which ones?

Brand extension strategy it can make sense. In several instances, brands become stronger because of this strategy. Harley Davidson is not the only one to fail when it comes to brand extension and I can give you an example of bad brand extension, BIC.

Bic is famous for its disposable pens, their disposable shavers, and their disposable lighters. But the brand thought they were too big to extend into another sort of business, so they introduced us with BIC Underwear. Without even changing the brand name, they produced a line of women disposable pantyhose. Consumers didn’t understand and on the end the product was a big fail.

Brand extensions must make sense and have to be a logical step from the leading product so, Brand extensions need to be planned wisely with appropriate information and knowledge of the market and research behind it.

1. Which are the „core customers” that are the most sensitive to brand expansion strategy? Try to identify an example of customer that “turned their back” to the brand, as it has lost its core value for them.

The consumer plays a key role in the implementation of the brand extension strategy, as it is from their perception that the strategy can be successful or unsuccessful. The transfer of attributes between the core brand and brand extension can have both positive and negative effects. The transfer of an attribute that seems inconsistent with the product resulting from the extension can generate a negative view of this extension by consumers.