Micheline Brand Extension

Brand image

Brand extension strategy

Strength & Weakness

The brand problem

The brand challenge

Recommendation

Primary (manufacturing industry) Secondary (publishing industry)

Tires

(car, van, motorcycle, airplane…) Travel assistant services

(travel guides, road maps, online mapping)

Advantages

Get more profit

Enter new product categories more easily, instant recognition & faster acceptance, quickly gain market share

Constitute brand territory for further brand extension

Strengthen brand image

Save high advertising cost usually required to familiarize consumer with a new brand

Risks

Difficult to manage if the new launch is in a very different market from the original brand & new target customers don’t value the brand’s associations пÑ"ЁBrand extension may easily fail

In case of failure пÑ"Ёharm consumer attitudes towards the other products carrying the same brand name

Lose brand name’s special positioning in the customer’s mind

Confuse the image of the main brand

Dilution of brand image

Strengths

The world second largest tires manufacturing вЂ" over 120 years history

Strong brand image

Easily recognized by symbolic differentiation

Quality product

Weaknesses

Trouble with the brand extension

The brand extension is facing with publishing in accurate information

Effect on the brand’s central values (safety, performance) пÑ"Ё Reduce the brand image

Competition with GaultMillau, direct competitor in the brand