Aligning Brand Portfolio Strategy with Business Strategy

--Henrik Uggla

This paper discusses the importance of aligning the brand portfolio strategy with the business strategy so as to make the best use of available market opportunities. Further, it highlights and elucidates through numerous examples, four approaches for doing the same, i.e., (1) aligning brand portfolio objectives with business objectives; (2) business development through brand extensions; (3) business expansion through brand acquisition; and (4) using brand alliances as energizers of business strategy. In effect, the paper suggests that a brand portfolio strategy which is in alignment with the business strategy would go a long way in meeting both brand marketing and business objectives in a harmonious manner.

© 2015 IUP. All Rights Reserved.

Consumer Acceptability of Brand Extensions: The Role of Brand Reputation and Perceived Similarity

--J Evangeline Selvanayagam and V R Ragel

This study empirically examines the role of independent variables in deciding Consumer Acceptability of Brand Extension (CAOBE) considering the ‘Kist’ brand in Sri Lanka. The acceptability of brand extension has been tested with regard to ‘perceived similarity’ and ‘brand reputation’. The data was collected from a convenience sample of 200 ‘Kist’ brand consumers through a closed-ended questionnaire and was analyzed using univariate and bivariate techniques. The results reveal that in evaluating brand extensions, consumers take into account the existing brand reputation as well as perceived similarity between the new product and the products already associated with the brand. These variables have positive influence on consumer evaluation, and the brand extension of ‘Kist’ has a high level acceptance among the target consumers.

© 2015 IUP. All Rights Reserved.

A Study on Brand Loyalty and Its Association with Demographics of Consumers: Evidence from the Cellphone Market of India

--Umesh Ramchandra Raut

Marketers always try to develop a strong brand that enjoys sustained brand loyalty among consumers. Customer demographics is one of the many factors that would influence brand loyalty. The Indian market for cellphones has witnessed very rapid growth and transformation in recent years. There has been a quantum leap in the availability of features and facilities in the phones, and dramatic changes in consumers’ usage and attitude towards the same. The youth in particular, have caught on to the new technology in a big way, and new cellphone handsets are brought on when the earlier ones become outdated. This paper studies the association between brand loyalty and customer demographics in the context of cellphone handsets. It also revalidates a scale for brand loyalty measurement developed earlier. The study shows that gender, income class and age of cellphone customers play a vital role in developing brand loyalty. The findings of the study have significant implications for cellphone marketers.

© 2015 IUP. All Rights Reserved.

Case Study: Starbucks’ Entry into Tea-Drinking India

--Revathy Rajasekaran

Starbucks is the world’s largest coffeehouse company with a presence in 65 countries around the globe. As coffee shops were nearing saturation in the US and Europe, Starbucks identified the potential for expanding in emerging markets like China and India. Though China is mainly a tea-drinking nation, Starbucks won over this market with its localization and customization strategies. Starbucks believed that India provides a good business opportunity, given the size of its economy, rising spending power of the people, and the growth of café culture. In 2012, the company set up its first store in India. Initially, Starbucks’ stores received good response, but then faced challenges such as competition from organized and unorganized coffee (and tea) shops, high pricing of its products, getting the right store location and talent pool. The present case aims to analyze the challenges and opportunities that Starbucks face in the Indian market, and the marketing strategies that it should follow in the Indian market. Analysis suggests that Starbucks should adapt to the peculiarities of the Indian market. ‘Glocalization’ strategy can be adopted, which would use the successful Starbucks’ strategy used around the world, at the same time taking into account the changes required to suit the Indian context.

© 2015 IUP. All Rights Reserved.

Case Study
REDvolution: Repositioning the Nescafé Brand

--Adapa Srinivasa Rao and G V Muralidhara