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Brand Management Assignment#2 Company Case#1 Are There Any Boundaries To The Virgin Brand Name?

This document contains a student's answers to assignment questions about brand management cases involving Virgin Group and Coca-Cola. For Virgin, the student analyzes the brand extension strategies used, reviews the brands based on brand knowledge, and discusses if the brand is overextended. For Coca-Cola, the student summarizes a case study about changing the Coke formula, proposes new extensions, and discusses what they would do differently as brand manager to ensure success.

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Faizan Khan
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299 views

Brand Management Assignment#2 Company Case#1 Are There Any Boundaries To The Virgin Brand Name?

This document contains a student's answers to assignment questions about brand management cases involving Virgin Group and Coca-Cola. For Virgin, the student analyzes the brand extension strategies used, reviews the brands based on brand knowledge, and discusses if the brand is overextended. For Coca-Cola, the student summarizes a case study about changing the Coke formula, proposes new extensions, and discusses what they would do differently as brand manager to ensure success.

Uploaded by

Faizan Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BAHRIA UNIVERSITY, KARACHI

BRAND MANAGEMENT ASSIGNMENT#2

COMPANY CASE#1

ARE THERE ANY BOUNDARIES TO THE VIRGIN BRAND


NAME?

Name: Muhammad Adnan

Class: BBA 8-C

Enrollment No: 02-111162-266

Q1: Identify which brand extension models/strategies did Virgin


group followed?

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Ans. Richard Branson launched diversification policy followed by new product in


different sector. He wanted to execute this approach with various product lines in
specific countries, but the brand identity stayed the same. The unrelated
diversification included such items as mobile telephony, transportation, financial
services, entertainment, movies, vacations, fitness and wellness. It partners with
others and transfers skills, knowledge and operational expertise from a wide range of
industries and combines these. The Virgin company flies high in brand expansion and
expands into a range of markets simply by adding the Virgin brand tag to any new
category they introduced into the market. Virgin continued to develop 300
independent firms with an approximate $21 billion in sales. Virgin's growth into new
markets has been through a number of joint projects offering the brand name to Virgin
and the investor supplying the majority capital. Another strategy implemented was
market penetration, utilizing various strategies, the same goods were marketed in the
same region. Thus, the new products of each sector had specific market penetration
strategy strategies applied which led to higher sales. The strategy to penetrate new
innovative products and services in the market arena at faster rate than ever. The
Virgin Group's main rationale is to branch out various feasible markets and further
expand the Virgin brand name at a low cost where stature can be used to reduce
barriers to static market entry. By focusing on innovation and differentiation that has
sacrificed short-term profits to gain long-term growth, Virgin aims to deliver better
quality products than any competitor in a complacent market. The extensions of
Virgin are unique given that they are truly focused on a business competitive review.
Additionally, Virgin Group Company is capable of operating their own company. The
organization also constantly supports one another in addressing issues.

Q2: Kindly Review their brands in the light of basic brand


knowledge.
Ans. Virgin Group Limited is a holding firm located in the United Kingdom, and
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Richard Branson was founded in 1989. The Virgin Group hires more than 50,000
employees, covers 30 countries and comprises more than 300 licensed businesses. In
2011, Virgin reported an estimated $21 billion in sales and Branson's financial wealth
was valued at $4.2 billion in 2011. All brands which muddled the brand name
meaning were assigned the virgin label. Of starters, a customer consuming virgin
alcohol will often use virgin health care facilities, like traveling with virgin and
listening to virgin songs, virgin hospitality, and virgin virgin investments, etc. If we
use the virgin name, the customer wouldn't be able to recognize which brand we
belong to. Due to this purpose, the clarity and separation between brands does not
exist which exemplifies lack of attention. Branson started by selling mail order
records, gaining access to high street retailers, allowing him to open a 1970 Oxford
street store. The name Virgin was chosen because it was friendly and modern, and
could be applied to other sectors than music. The Virgin Company has developed to
be one of the most popular companies in sectors spanning from mobile telephony,
entertainment, leisure, vacations, transportation, financial services, television, music,
health and wellness and value for money, efficiency, creativity, fun and a sense of
competitive competition. It has invested in another company because some of the
companies are more costly to change the loss from another sector. After 1970 the
company grew as Virgin Recordings to product marking. Virgin Atlantic, a low cost
transatlantic airline, was founded in1984. The fist foot in the diversification of
mixture. It floated on stock market in 1986. However, Branson’s personality was not
compatible with the accountability required of a chairman of a public corporation. In
1988 he bought out the external shareholders and returned the group to private
ownership.

Q3: Do you think Virgin’s brand is overextended? What are the


arguments for or against it?

Ans. Indeed, it is over extended. Different types of goods are piling up and the
consumer becomes puzzled. Additionally, the target market is struggling to decide

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which commodity to choose from the list. Furthermore, the brands tend to cannibalize
each ether's profits, because too many new competitors reduce the interest the product
marketing plan might have created if performed correctly. The exploitation of the
brand equity can take place when entering into new markets, capitalizing on
recognition,goodwill and positive association. For example, Virgin moving into
airlines, financial services, radio stations, and bridal services. Every company faces
risk as a result of their strategy. Virgin Group's most important quality is its name.
Might be a risky tactic to improve the business. For example, a customer who enjoys
a nice holiday package on a Virgin Holidays might be happy to use Virgin Mobile,
but a customer who has a bad experience with any of the products and services could
avoid all the products and services.

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COMPANY CASE#2

COCA-COLA’S BRANDING LESSON

Q1: Write a brief summary of the case study.

Ans. The case study notes the difficulty that Coke had to meet in terms of rivalry.
Their competitor Pepsi was posing Coke's dominance in the cola sector as a serious
threat. When Pepsi brought out several blind experiments for its consumers to figure

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out which tastes even better Pepsi was preferred by everyone. Coca Cola was
frightened of this development and Coca Cola began feeling forced to act. The buyers
enjoyed Pepsi's sweeter flavor so as to restore their profits. With approximately
190000 consumers, they conducted their own experiments for the fresh sweet taste
and the findings confirmed that their consumers liked the new recipe more than the
former. For them, customer response was swift but late. They have even needed to set
up a hotline for their clients. They had around 1500 calls a day for this. They agreed
to update their old recipe named the Coke Classic despite slumping revenues.
Through this, they learned a hard lesson. Their consumers preferred as an American
Icon not just as an ordinary drink. Although Coke had an sentimental and romantic
relation with its consumers, modifying the ingredients did not improve. Over the
years, Coke made other mistakes but its biggest failure was the way the drink was
meant for his customers. This also suggested a lesson on how much coke brand meant
for the consumers.

Q2: Propose new category and line extension for coke. And discuss,
how successful do you predict these recently proposed extensions will
be? Why?

Ans. The latest category extensions will be coke chewing gum called "Tracker" and
"Coke delight" will be the main line extension. The expectations about these
extensions are that the coke itself has a fantastic optimistic identity of pleasure and
satisfaction and it provides a soothing picture of the chewing gum and the coke mint
in the minds of the customer. Because of the popularity of coke, consumer satisfaction
and price presumptions, it can be quickly infiltrated into the sector. They can also
create sub-brand flavor drink, targeting mainly young people. Since it will be better
for youth not to purchase or consume soft beverages and a taste flavored drink will be
an extension of healthy rows. We should consider adding their own chewing gum for
category extension like Pepsi does for Lays. But it will take them a long time to enter
the sector because Coke holds 80% of the market share. This might be a smart thing
because they will launch a fresh product blend with certain kinds of products that
Lays hasn't worked on. Coke also seeks to do its utmost to fulfill the customers'

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appetite whether it be soft drink, fruit or hot water. Therefore, by introducing these
different terms their market share would certainly increasing and achieve new targets.

Q3: If you were the manager of that brand, what would you do
differently to make

proposed extensions successful?

Ans. Knowing myself as a brand manager, I wouldn't be delivering dramatic


improvement to my customers, but I should have done a pilot survey and analyzed
and checked or asked for feedback on what people really want. Even a focus test will
be weighed before a major risk is conducted. The Pepsi co. commercial was a positive
relative to the Coca cola commercial. The apprehension for coca cola was in terms of
the taxes function that Pepsi had revealed, now the market share might even be
impacted when entering new business. I wouldn't change the formula for the new
product if I were to be a brand manager but I would change the brand name into
another. I will also put along new line extensions and function via social networking,
mainstream media advertising, v loggers and sponsor ships on the development and
publicity strategies for the brand. Also, If I were the brand's manager I should
calculate my Brand Value first. That's to track possible future impacts of my entire
brand. I should look at all the extension's possible threats and seek to assess the
beneficial and harmful impacts. When I make a new product, all the skills needed
from current business and marketing operations should be leveraged to gain a
competitive advantage in the new category. The new product needs to be a good
match with the company, stable, planned and meet all of my brand's characteristics
instead of launching an entirely different product to the market. Eventually, they must
seek to insure that the extension generates a significant degree of customer loyalty.

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