Brand extension The new products launching is the momentous reason that the company hold their research, as a result of line extensions and franchise extensions are concerned to be more cost-effective ways to introduce new products and have a higher success rate compared with creating completely new brand names. ( Elliott and Percy 2007) The brand extension is a key driver of the brand strategy for both cereal brands. Line extensions can benefit the parent company by expanding market coverage, such as by offering a product benefit whose absence might have prevented consumers from trying the brand. Keller 2008). For example, the line extension that Nestle Chopin introduction is Chopin [email protected] This new taste was able to attract consumers who prefer much higher levels of sugar and chocolate enhance market coverage by bring more children into the brand franchise. Things happen in the complete positive direction with Kellogg. Kellogg'” Rice Crispier cereal is the parent brand for the Rice Crispier category. Kellogg'” Rice [email protected] Gluten Free cereal are launched for those group of people who sensitive with the protein, but also can have the same quality and taste of Rice Crispier.
And also Kellogg'” Rice Crispier Treat” cereal attracts to the groups who like to make their own cereal with variety material such as caramel to treat holiday-specific. More than that, from perspectives of consumers, consumers is more interested on the quality and features that the existing well- known-strong brands promised. Keller and Asker (1998) move forward to elaborate that the customer can transfer his knowledge of brand from the present brand to the it extension or unfit extension brand. If the general opinion of the brand is favorable, the behavior regarding the brand extension should be the positive as well.
In addition, not only the extension benefit from this fame, also the sub-brand can contribute to clarify the meaning of a whole brand to consumers and deigned the kinds of markets in which it competes. (Dennis and Satanic 1995). Kellogg’ Rice Crispier has stayed close to the core positioning of delivering on a tasty, nutritious breakfast, however offer consumers to a wide variety of fit extension branding to get the core product benefit. The original parent brand promotes overall health while Rice Crisped Muddles help the body emerge “friendly’ bacteria.
Meanwhile, the Coca Crispier provides a way for consumers to support child’s immunity. (CLC 2008 ). Those sub-brands fits the parent brand and leverage the meaning of whole brand. Nevertheless, the brand extension strategy is not always successfully. Dauber (1981) state the risks associated with brand extension that the fail extension not only lead to the decrease in volume of the core brand, but also damage the core meaning and promise of parent brand. Asker (1990)has also shown that unsuccessful brand extension may dilute the equity of the brand irrespective level of equity held by the parent brand.
Kellogg'” Rice Crispier cereal discontinued its sub-brand Razzed Dazzle Rice Crispier because its high sugar contain and artificially-color. Strawberry Rice Crispier was discontinued due to concerns of causing cancer. These failed sub- brand have a opposite effect on the core brand that hold the nutritious and health breakfast cereal as the core brand identity. Ghana and Sod( 2000) state a different evaluate whether or not the brand extension strategy is successfully by making a distinction between adults and children. And extension, which mean by having a similarity category even the similarity name of the brand are helpful.
Considered both cereal brand targeted children, the extension of Nestle Chopin could be more appeal to children due to the complex category and name while extension strategy of Nestle Chopin Could be more well received by the parent. Packaging Packaging is one of the brand elements which plays an impairment role in products. In order to enhance the shelf appeal of a product, built the brand equity and brand awareness in the nowadays crowded marketplace. Packaging means a lot more than imply contain and protect its contents. Keller 2008) Therefore, although packaging changes could be expensive, both brands are committed to seek the innovation of the products packaging. Kellogg designs their packaging concerning the function. A shorter, deeper cereal box size and shape with 8% less packaging materials examined by Kellogg. This new box will hold the same amount of cereal, but for the perspective of consumer it saves space on cupboards about 5% less. At the same time, the weight and size of the packaging were reduced, which increase the amount delivered each delivery. And that strategy led to saving on delivery fee.
In addition, packaging also can build brand equity in appealing consumers on the shelf. The visual effect on the pack has advantage of sale when compete with other brand. Such as the color and information etc. Conveyed or inferred from the packaging can add the value of the brand and reinforce the brand recognition and also as the “last five seconds of marketing “ways to attract consumer from the shelf. Cocoa Crispier as the one of the extend brand of Kellogg Rice [email protected] packed their cereal box with colorful images of cartoons and provided the information about product contain as well as nutrition to consumers.
Not only attracts children, the packaging also focuses on the nutrition aspects as well as relevant information about the product components to appeal to the parent. Getting strong emotional bonds with the mothers is essential for them, they are the ones who makes the decisions for their children, so it is necessary to build strong emotional bonds with them. However, this packaging maybe too eager to deliver to the parent that the nutrition of the product contain, thus, they put a bannered in bold lettering on the front of Cocoa Crispier cereal boxes that claim this product can help to support child’s immunity.
This slogan may attracts the parent threatened by the HI IN virus or flu for their children, but it was also criticized by the US health authorities because that could be misleading and deceptive to consumer. Thereby, this packaging had a negative effect on Kellogg brand and lead to decline on customers’ loyalty and the company profitability worldwide. Chopin cereal is same as Cocoa Crispier with Collaboratively cereal product, but this cartage help Nestle to become the market leader of cereal instead of Kellogg who were holding the dominance position for many years.
The packaging innovation plays an important role for this successful Lourdes and exciting images. However, this brand have a border marketing by the different package sizes available on 3 sizes gag, gag, and gag and that are relevant to its target market that is covers all the different family sizes from nuclear to extended families with more than three children. And that appeal to a new market segments that can be taken in by more different structure of family. In addition, this brand is aware that only providing children with stories about different games and cartons toys is no different from what other competitors.
Hence, this brand came up tit a highly innovative and smart packaging with an integrated AD game animation on their box. They put the advanced technology into use on the cereal boxes and make the box become a game console. That is all about brand experience. This new innovative package is not Just containing and protecting the contents of the product, but it also enhances the shelf appeal of the product. Brand community A brand community was considered as a anemographic bound community with social relation as base among admirers of a brand. Schroeder and Salter- Normalizing)). Research on brand communities has presented that communities can effect on the perceptions and actions of its members, speed up the flow of information across the communities, and help members evaluate new products introduced into the market. (Output and Calder 2010) Brand community involved a customer-centric model which includes relationship with products and also relations with marketing agents and institutions. (Elliott and Percy 2007). These focus on the experience of customers rather than the brand.
For example to get deeper insight of customer and to satisfy target, Nestle Chopin believes that establishing a healthy eating style will enable children to be a healthy adults. Educating children about the nutrition value is the best way to lead them understand the health ideal that Nestle Chopin desire to expression. With collaboration of national health and education authorities,”Healthy Kid Program” purpose is to build up a community to increase children awareness about nutrition and assist kids to live a healthy lifestyle.
In the same way, Kellogg'” Rice Crispier has invested national learning charity to develop breakfast club initiatives. They help to ensure that children are fed and ready to learn. Kellogg promotes breakfast via these clubs, and also providing Kellogg'” Rice Crispier cereals for free. The both targeted children brand put the healthy eating idea insight of the children and parent using the brand community so that enhance the branding meaning. With the development of the advanced technology, internet accelerates the growth of online brand communities.
Customer develop relationships with the brand on product usage, which provides the customer functional and symbolic benefits. This is then followed by formation of relationship with brand community members. Thereby, the relationship between customer and brand is converted into the relationship between customers and customers, which mean that is the interaction between there customers. The premium research show that behavioral of the community is of these communities is translated into actual behaviors. Output and Calking 2005, ) Nestle chose to build relationship with the online brand community. For instance, Chopin expand its online brand community with a website contain a number of cartoon character games. Due to the more and more strong desire that the children want to activity in network, ( brand child ) those games were ideally suited to provide the perfect venue for the Chopin cartoon hero character to show their distinct rationalities and attracts more children interact with the brand. The children can john this community by registering and they can play the game together.
According to Lindquist and Keyboard (2003), building brands is all about appealing to the senses. Thereby, Chopin community build a sense based on the fancy carton hero games and make the relationship between children. This community are popular among the children so that behavioral of the community are translated into purchasing behaviors. Expect for Chopin, Kellogg Rice Crispier also experience with the online brand experience whilst using the online forums like Faceable. Kellogg Rice Crispier ran a program centered on encouraging more people to communicate to the Kellogg Faceable Page.
They inspire their members to share their favorite stories about cooking with your kids and more interest cooking recipes with the Rice Crispier on Faceable page. Faceable contribute to build really strong brand equity and enhance the brand value for Kellogg Rice Crispier due to more and more people John this community and interact with the brand by sharing and seeking the other member’s special stories and recipes. In the brand community situation, community members in both brand have a higher bevel of identity to the brand, even more, this identity can be developed as the common sense in the community.
McMillan and Chivies (1986) . As a result, those brands cultivate customer loyalty as a border and stronger level. This essay compared two brand Nestle Chopin with Kellogg'” Rice [email protected] using brand extension, packaging as well as brand community to disuse the reason that they keep the market-leading position for long year. Using brand extension strategy, both brands take full advantage of the sub-brand support for the parent brand to clarify the meaning if a whole brand and also reinforce the market segment or the targeted children. As for packaging, they both appeal consumers on the shelf.