Feedback Effects of Brand Extensions: An Analytic Approach Using the Example of Hipp GmbH & Co Vertriebs KG
Seminar paper from the year 2007 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, Copenhagen Business School (Copenhagen Business School: Department for Marketing Communication), course: Strategic Brand Management, 15 entries in the bibliography, language: English, abstract: Even though it may sound strange, the baby food market in Germany has recently been announced to be a mature market. Referring to the Federal Statistical Office the state’s birth rate is decreasing steadily, as in 2006 only 1.331 children per woman in average were born (Statistisches Bundesamt 2007). Hipp GmbH & Co Vertriebs KG has been the market leader in the product category of baby food for over half a century now, representing a strong unique image that combines quality and trust with organic farming (Hipp 2007). Although maintaining market shares and keeping up high brand equity the company has been coping with declining turnover due to reduced market potential in the last years. To solve this problem Hipp expanded to another product category in 2006, using its strong image to break into the baby body care market – with success. But how did this strategic move impact the core brand perception? As little research has been done on extension’s feedback-effects towards the parent brand this paper presents an analytic approach towards this branding issue. After introducing Hipp’s branding strategy and highlighting two issues the company faces in concern to brand extension the paper critically analyzes five scientific articles dealing with feedback effects. In an overall conclusion the findings of these articles are related to Hipp’s branding issues.
What people are saying - Write a review
We haven't found any reviews in the usual places.
accessed October 14 Advertising a Brand advertising budget allocation associative network theory baby body baby food market baby food products Balachander and Ghose Benefit of Brand body care market body care products book-keeping model brand image Brand Management brand-choice elasticities Cacioppo Caused by Brand Change in Perception Chen and Liu consumer’s Consumers perceive core question corporate brand CUSTOMER-BASED BRAND EQUITY Ecolot Eismann extended product extension’s advertising familiar brands high involvement high motivation Hipp Baby Hipp’s baby food Hipp’s Corporate increase turnover initial-brand beliefs Journal of Product Keller launching an extension loyal users managerial implications market share mature market non-loyal Parent Brand Caused parent brand’s image parent’s own advertising Penaten perceive a parent positive information Product & Brand product category product mix promotional efforts PROVIDING THE BASIS real option reciprocal effects reciprocal spillover effects Referring Schumann segment Sheinin Strategic Benefit Supphellen Thorbjørnsen 2005 transfer new associations Vertriebs KG Zimmer