Proposal to Extend Victoria Secret Brand Essay – Analysis
According to an article by Grewal and Levy (2011, p.219-221), extending a brand is essential to getting the most out of a core product belonging to that brand. The article says that extending a brand involves using or creating a brand name that is similar to the core brand for a different line of products. This article seeks to evaluate and analyze the Victoria Secret core brand and extend it with a hair color product. Therefore, the purpose of this Victoria Secret brand essay is to assess the value of extending a popular brand.
Victoria Secret Brand
Vitoria Secret is a retail business associated primarily with apparel and its main areas of investment are in female clothing, lingerie, bras, panties, hosiery, nightwear, swimwear, cosmetic products and fragrances (Gross, 1987). Victoria’s Secret Brand is the largest retailer of its type in the USA and it is a brand with a strong identity (Earnest, 2005). In its generic form, the brand’s working capital equals US$1 billion and, in 2012, it sold US$6.12 billion worth of products as offered through the brand’s online store and other outlets.
Proposal for Brand Extension
This proposal is for a hair dye product, which will become the alternative (or extended) Victoria Secret brand, but it will target the same consumer group or marketplace. The hair dye product will already have a market by virtue of its exploitation of the ‘mother’ brand, which is argued in this Victoria Secret brand essay.
Factors that Should Make the New Product a Success
Through Analysis of Victoria Secret Core Brand and exploiting its popularity and equity share, the brand extension theory suggests the proposed new product should quickly penetrate the market. Association with the Victoria Secret brand name indicates similarity and familiarity. Using brand extension for the hair dye product would identify the new product with the existing well-established Victoria Secret brand in the targeted market. Because the ‘mother’ brand enjoys strong market acceptance, consumers would have a good perception, a positive attitude and a belief that the new hair dye product would bear similarities to the Victoria Secret brand.
The proposed hair dye product could become a success owing to the fitness for purpose perception between the core Victoria Secret brand, which already has a well-established identity and the perceived complementary qualities of the hair dye product (La Ferla, 2007). There should only be a small distance between the ‘mother’ brand and the proposed new product so that the latter can use traits and/or competencies of the former to drive sales (Earnest, 2005). A large distance would mean the hair dye product would use only a few of the traits or competencies of the ‘mother’ brand. .
Possibility of Dilution to the Main Brand
If the distance is too small between the core brand and the new product, this could result in the ‘mother’ brand (Victoria Secret) becoming diluted. Conversely, too wide a distance would potentially have limited impact on the value of the Victoria Secret brand. Dilution could also result to the brand from a good fit between the ‘mother’ brand and the hair dye product and where the customer experience and attitude to the new brand are not high. If the brand extension were to become too diluted, the Victoria Secret brand could experience a reduction in equity in some of its products such as fragrances due to the similarities with the proposed new product. This could result in products from the ‘mother’ brand such as fragrances and cosmetics suffering a short-term reduction in sales. This would impact the annual sales of the ‘mother’ brand and restrict its current level of operating capital due to the possibility of low or slow sales.
The proposed brand extension could benefit from the key competencies of the ‘mother’ brand because of how well established the Victoria Secret brand is and because it has high brand awareness, higher value and higher equity. However, this Victoria Secret essay argues that if the proposed new brand is to benefit from the ‘mother’ brand, it should have better attributes or better selling points. These better attributes should result in a better perception of the brand and positive attitudes to influence consumer buying decisions. The gap between the two brands should be sufficient to reduce the risk of diluting the ‘mother’ brand. In turn, this would give the new brand chance to benefit from the equity of the Victoria Secret brand.