Question

How successful do you predict these recently proposed extensions will be? Why?

a.    Mont-Blanc (famous for pens): fragrances and other accessories (watches, cufflinks, sunglasses and pocket knives)

b.    Evian (famous for water): high-end spas

c.    Starbucks (famous for coffee): film production and promotion

d.    Trump (famous for hotels and casinos): vodka and mortgage services

Answer 1

Answer:-

(A). it seems likely that the pen company could extend into other pocket accessories and sunglasses, but it's hard to image how existing brand reputation could be applied to new fragrances. Pens and cologne have nothing to do with each other, so there's no “perception of fit with perfume. The company's pens are so well-regarded within the category that it will be difficult to stray too far from that exemplary product.

(B). a basis of fit could be established by noting the "natural spring” origins of the branded water and tying it to "hot spring associations with spas. Thus, consumers' positive associations with the brand's bottled water could be transferred to a modest number of European-style spas.

(C). since baristas have no publically recognized expertise in film production, it might be wiser to emphasize the coffee in skillful product placements within, say, urbane romantic comedies. The coffee company could also emphasize the extension rather than the brand by taking modest co-production roles while refraining from splashing its famous logo all over the end credits.

(D). a prestige sub-brand of vodka might not be an awful extension, but many people see both alcohol and mortgages as negative elements. These extensions could lead to jokes about the highly visible tycoon's judgment, compassion, and greed. A better extension might be quality menswear or fragrances.