January 10th, 2018
Carte Blanche Ltd – Approaches towards NPD and Brand Strategy in CBG
Developing new product may involve either brand extension or line extension. Whereas the former deals with applying strengths of existing brands to get into a new category of products, the latter is the use of such existing brand’s strengths to introduce new offerings in the same category (Ambler & styles 1997). CBG has the opportunity to explore both alternatives. For the line extension, CBG could evaluate offering non-premium greeting cards in emerging and developing markets. For the brand extension, CBG can evaluate the feasibility of other brands that are not oriented towards the “happy” greetings and gifting market. Such include consolation cards, success wishes and congratulatory cards.
New product development is however an engaging process that, according to Kottler (1991), involves at least an eight-step process (cited in Ambler & styles 1997, p. 17). The steps include idea generation, screening, and development and testing of the concept (Kottler 1991, cited in Ambler & styles 1997, p. 17). After these processes, a strategy for marketing the brands is formulated, the financial feasibility evaluated and then the physical product development started (Kottler 1991, cited in Ambler & styles 1997, p. 17). Market testing and commercializing the brand are what Kottler (1991), considered as final stages of NPD (cited in Ambler & styles 1997, p. 17).
According to such a process, CBG brands’ strengths offer a variety of opportunities. Firstly, the established brand loyalty of the Me to You brand forms a basis through which the entity can lure the customers to evaluate its new brands (Voss & Gammoh 2004). Through its communication channels for Me to You brands, the entity can run promotions for its new products. Such could for instance be in the form of offering discounts on Me to You branded products for new brands purchased.
A second aspect that offers a way for sound brand development is the customer interaction through the social media and internet. By establishing channels in such media where customers can engage the entity’s brand and offer feedback on brand attributes that require reinvention, the entity will be able to create brands that are in line with customer needs. An example of such a branding strategy is provided by Starbucks where customers engage the brand through a website designed solely for such communications apart from its other feedback channels from the social media (WetPaint & Altimeter Group 2009). To effectively engage in expanding its brands to foreign markets, the entity may however need to offer some of its stock to the public, not only as a source of financing such operations, but also alleviating the tag of a foreign product in some of its markets. go to the conclusion here.