Brand Extension Response Paper
Neste Brand Extension
Basically a brand extension is the conversion of existing brand into a new product with the same name into the market. Companies do this because of improving the reputation and fame of the products and name of the company. I did a research on Nestle company’s products and I found some points related to their brand, which I like to discuss with you.
Also Study, Nestle Company Profile
Nestle brand has a number of categories of its products for the ease of the consumer. Nestle has introduced nestle Nescafe, nestle vita, Maggi, kit Kat, water bottles in large and small sizes, cereals like milo and cocoa crunch, nestle juices, flavored milks, food items like jam jelly, marmalade, yoghurt, milky bar, pet care biscuits and cereals are also introduced by Nestle.
Nestle has many products in one brand for example nestle has juices of different flavors like apple, mint margarita, pine colada, chunsa necter etc. Maggi has many flavors in it and it has Maggi Atta noodles as well with white flour noodles. Nestle has simple milk and nestle nesvita special milk for females also he has milo the flavored and healthy milk for kids and youngsters also.
Product Line Extension
Product line extension means to extend the range of product with the number of different items. Nestle introduced his simple purr and fresh milk first. After that they introduced nestle nesvita, special calcium enriched milk for women. Further, they introduced MILO flavored and healthy milk for kids and young ones as well. (MONEY MATTERS | ALL MANAGEMENT ARTICLES COPYRIGHT © 2018)
The Brand Strengths
The strength of any brand depends on the use of it, s products to the customers. The products which nestle introduces are all for the consumers use in daily life. All the products have made their life relax and easy. The trust of people on the product depends upon the quality and purification of the products. The food and beverages items of Nestle are healthy and pure on which consumer trust.
The best brand extension in Nestle products are milk product and variety of juices they introduced. They are exactly according to the taste that people like and are beneficial for the health of consumers use it to keep them strong and active with fitness and taste as well. This change in their products revolutionized the world of taste and health for people. This extension represents the brand best in all of its categories.
The weakest product of any brand is that whose sale does not support the brand expenses. The weakest product is also not liked by most of the people who use it first for taste. The weakest product of Nestle, which I found after doing a study on its product, is Maggi noodles. The taste of Maggi noddles is not much liked by kids as compared to the taste they like of noodles of competitors. They do not have such delicious taste which other company have in their product. This represents worst to the brand.
In my suggestion, the brand could expand its range to more food items. The frozen food is a trend now a day. People like to have them as snacks or as a proper diet on regular basis. People now days are in a rush all the time they want falsely cook food to fulfil their appetizer desire. So nestle should launch baked and readymade items for people which increases their likeness and fame.
Second Brand “DOLE”
Brand Extension leads to a successful growth to the companies who wanted to go higher in reputation and fame. Brands should be well known to people in and across the world so that your sales may increase day by day. Extending the variety and amount of product in brands increases your traffic of likeness and leads you towards the success.
Categorizing the brands should be according to trend going at that time. People are the consumer of that product so product should be liked by people and people recommend it to others. A company introduces new products of the same brand. The products they introduce should be little different from existing products and have reasonable price. If the price of new product becomes very high, so people will not buy it. Many of our people want best in less because they have a normal financial budget. So this mind would be keep in mind by the producers that new product should be affordable to people of middle salary as well.
Extension of brands is also a good stamping’s success. If company introduces a new product in same category then people will rely on it. The people have already a trust on that product which makes them comfortable. The new product with same brand attracts customers fast because they had a trust of them to that brand. When you are going to launch a new product of same brand, you should keep launching price low. You should also keep a discounted offer or buy one get one free offer to attract customers. When customer likes it when buy it in low price, he / she will definitely buy it in high price as a must. (Krishnamurti, 2007)
Product Line Extension
This type refers to the term that company should in touch the target market of their product. The variety product from existing product should be according to the wish of consumers. The “DOLE” company is very much famous in pineapple freezing. They have canned pineapples, full size and in slices as well. They have very fresh and delicious pineapple juices made fresh at their production house. They have many other fruits preserved in cold as if banana, mushrooms, melons etc but people mostly rely on them for pineapple. They are having a plan to move ahead to some other products as well. So that their sale, brand loyalty will improve in the competitors market. (Edward M. Tauber) (Hanks, 2008)
The Brand Strengths
The brand’s strength depends on the use of consumers of that product. The brand should be made according to the taste, need, want, desire and strength of expenses on his pocket. Therefore, that customer get attracted to it by leaving all other company is making same brand. The customer never compromises on the quality of the product he / she wishes to use.
This quality increases the strength of the brand and makes it strong and famous among the consumers. The company should also keep in mind these little but important aspects while making any product so that they keep winning the hearts of consumers and keep their trust on your Brand.
The “DOLE” food company is the world’s best company of fruits and vegetable growth. The company has some 200-food products that are sourced, grown, processed, marketed, and distributed in 90-plus countries in the world. It also has packaged cut fruits, salads, frozen juices and juices. Dole has more than 1 million sq. ft. of vegetable processing plants worldwide and sells its products in the Americas, Asia, Europe, and parts of the Middle East and Africa.
It was founded in 1851 and since now it, s best representation in the world are the vegetables and packaged fruits. The packaged fruits and vegetables are so fresh and tasty that people buy it on regular basis and use it as an essential part of their diet.
Dole’s operations today are multinational, spanning 117,000 acres of farms and other holdings, including thousands of acres of farmland in Hawaii and peach orchards in California. Worldwide, the company owns more than 1 million sq. ft. of vegetable processing facilities. It operates banana-ripening, produce, and flower distribution centers in Sweden, Germany, Austria, and Italy. It also has salad and vegetable plants in Sweden, Costa Rice, and Finland. By looking at this figure of working we can easily say that it had no any specific weak example of category of brand extension which minimizes their sale.
By taking a look at their graph of sale and success I have no suggestion for them to expand any product to take a higher place in the market. They already had a greatest place in worldwide market. Their competitors are trying well to compete it but all in vein.