Carlsberg's Brand Extension into Male Grooming: A Marketing Analysis

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This essay explores Carlsberg's brand extension strategy, specifically focusing on its entry into the male grooming market with products made with beer. It defines brand extension, elaborates on the reasons why firms choose to extend their brands, and analyzes the potential advantages and disadvantages of Carlsberg's foray into male grooming. The advantages include leveraging the established brand name, easier entry into new product categories, and defensive marketing. The disadvantages include potential brand confusion, dilution of the existing brand image, and cannibalization of existing products. The essay concludes that brand extension can be a valuable strategy for penetrating advanced marketplaces, but companies must ensure product quality to avoid undermining brand credibility. Desklib provides access to similar solved assignments and resources for students.
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Brand extension - Carlsberg male grooming 1
BRAND EXTENSION - CARLSBERG MALE GROOMING
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Brand extension - Carlsberg male grooming 2
Brand extension
Brand extension refers to the strategy of marketing in which the corporation markets a product
with the well-developed use of similar name of brand in the varied category of product. Brand
extension in some cases also refers to the brand stretching. According to report by Walsh and
Williams (2017, p. 47), it is the launch of the modified or new product into the broader category
of marketplace in which the brand operates. It is a strategy that most organizations use to
leverage and increase their brand equity. An instance of extension of brand is Carlsberg male
grooming that launch a line of products of grooming for men that were all made with wine to
targeted clients around markets. The idea increases the awareness of specified brand title
together with increasing profitability from process of offering in more than a single category of
product (Ma, Wang and Wang 2014, p. 7). Therefore, brand extension connects with the process
of development of products by introducing minor variation on products. For instance, Carlsberg
introduced Carlsberg male groom as the strategy of brand extension.
Why firms would make the decision to extend their brand
The ever-changing business environment is the major reason why most firms make the decision
of extending their brand in different markets globally. The use of technology, as well as
globalization, has changed every operation concerning business and brand presentation. Such
changes have made marketing of products to be no longer what it used to be and this motivates
firms to extend their brand (Cunha, Forehand, and Angle 2015, p. 1289). Besides, there is global
brand being presented in several marketplaces, there arises the need for local aspects and
sensibilities by the firms to be built into more brand and into the brand together with
management. Through such concern, most firms see it be imperative for them to build the
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Brand extension - Carlsberg male grooming 3
management or brand extension that can work through different micro along with macro levels.
The need to make decision to extend the brand by firms arises when there is a need for the
management to create a well known strong brand (Bellezza and Keinan 2014, p. 405). Such
brands have quality, durable, and useful features among other aspects. The created extension can
then help the company to have a good customer base that will rate it to be the best in provision of
specific brands.
The major reasons why firms would make decision to extend their brand is simply to increase
consumer knowledge, improve consumers’ trust on product, lower cost of product, enhancing
brand visibility, and provide the source of energy for the brand. The other reason is to provide
defensive strategy as a way of preventing competitors from gaining or exploiting the foothold in
the marketplace (Murray 2018, p. 12). Firm would make decision to extend their brand as the
study focuses on evaluation of consumer of extension and attitude toward the parent brand. The
idea can help firm to increase their sales as the strategy of brand extension is popular mostly
because it is less harmful. It is also cheaper strategy compared to the new brand, making most
firms to focus on brand extension (Chun, Park, Eisingerich, and MacInnis 2015, p. 581). Some of
the advantages and disadvantages of brand extension in case study of Carlsberg male grooming
are discussed below.
Potential advantages and disadvantages of brand extension - Carlsberg male grooming
Advantages
In Carlsberg male grooming, brand extension is useful as it has both advantages and
disadvantages around targeted markets, consumers, and management of company. During the
launch of male products of beauty that are made with Real Beer, brand extension is useful as it
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Brand extension - Carlsberg male grooming 4
helped the company to succeed to use brand name to launch its new products or the product that
the company modified in the same broad market. The use of brand extension can be essential for
Carlsberg in entering the new product categories in simpler manner (Niero, Hauschild,
Hoffmeyer, and Olsen 2017, p. 748). The idea allowed Carlsberg male grooming to launch a
line of products of grooming for men that were all made with wine to targeted customers. The
idea help in making such products that were all made from wine by the company to e easily
accepted by consumers. The idea also aids in increasing the image of brand under provision for
male to purchase and use. Brand extension acts as defensive strategy as it can prevent instances
of chief competitors from exploiting or gaining the foothold around different markets (Congwen,
Mingyang, and Ke 2017, p. 971). The idea also promotes the new product of Carlsberg male
grooming by making it less significant to develop the imagery and awareness.
Disadvantages of brand extension of Carlsberg male grooming
Some of the disadvantages of rand extension in the case of Carlsberg male rooming include
creation of confusion regarding meaning of brand. It also results in dilution of the existing image
of brand that the company had offered to its consumer sometimes back. Brand extension leads to
instances if cannibalization where it cannibalizes the existing products of the brand when
whenever there are positioned in the closed marketplace (Ma, Wang, and Wang 2014, p. 13). The
practice can lead to occurrence of disaster during operations. The occurrence of disaster can
occur and be out of control. The more extension the brand make on Carlsberg male grooming,
more vital the damages shall be in the market. Additionally, dilution of existing image of brand
can be the major disadvantage of brand extension on Carlsberg male grooming (Walsh and
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Brand extension - Carlsberg male grooming 5
Williams 2017, p. 54). The idea presents the massive danger or risk for the existing brand of
Carlsberg because the image of brand can be diluted easily by producing new products.
In Conclusion, from this presentation, it can be clearly seen that strategy of brand extension can
be a vital way of penetrating advanced marketplace. By utilization of the established name of
brand, considerable saving can be attained in the sector of promotion. Moreover, companies that
do not provide quality products have the risk of undermining the credibility of brands that are
already established.
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Brand extension - Carlsberg male grooming 6
List of References
Bellezza, S. and Keinan, A. (2014) ‘Brand Tourists: How Non–Core Users Enhance the Brand
Image by Eliciting Pride’, Journal of Consumer Research, 41(2), pp. 397–417. doi:
10.1086/676679.
Chun, H., Park, C. Eisingerich, A. and MacInnis, D. (2015) ‘Strategic benefits of low fit brand
extensions: When and why?’, Journal of Consumer Psychology (John Wiley & Sons, Inc. ),
25(4), pp. 577–595. doi: 10.1016/j.jcps.2014.12.003.
Congwen Shan, Mingyang Yu. and Ke Xue (2017) ‘Effects of Metaphor Advertising on Brand
Extension Evaluation: Construal Level as Mediator’, Social Behavior & Personality: an
international journal, 45(6), pp. 967–985. doi: 10.2224/sbp.5962.
Cunha Jr., M., Forehand, M. and Angle, J. (2015) ‘Riding Coattails: When Co-Branding Helps
versus Hurts Less-Known Brands’, Journal of Consumer Research, 41(5), pp. 1284–1300. doi:
10.1086/679119.
Ma, Q., Wang, C. and Wang, X. (2014) ‘Two-Stage Categorization in Brand Extension
Evaluation: Electrophysiological Time Course Evidence’, PLoS ONE, 9(12), pp. 1–19. doi:
10.1371/journal.pone.0114150.
Murray, R. (2018) ‘Carlsberg alibi marketing in the UEFA euro 2016 football finals:
implications of Probably inappropriate alcohol advertising’, BMC Public Health, 18(1), p. 1-22.
doi: 10.1186/s12889-018-5449-y.
Niero, M. Hauschild, M. Hoffmeyer, S. and Olsen, S. (2017) ‘Combining Eco-Efficiency and
Eco-Effectiveness for Continuous Loop Beverage Packaging Systems: Lessons from the
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Brand extension - Carlsberg male grooming 7
Carlsberg Circular Community’, Journal of Industrial Ecology, 21(3), pp. 742–753. doi:
10.1111/jiec.12554.
Walsh, P. and Williams, A. (2017) ‘To Extend or Not Extend a Human Brand: An Analysis of
Perceived Fit and Attitudes Toward Athlete Brand Extensions’, Journal of Sport Management,
31(1), pp. 44–60. doi: 10.1123/jsm.2015-0314.
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