January 10th, 2018
Carte Blanche Ltd Brand Development and Brand Strategy – introduction
Branding is a core component of an organization’s strategy. For instance, a brand offers an entity the opportunity to expand its market, differentiate its products to target specific market segments and achieve economies of scale (Wong & Merrilees 2007). Accordingly, the brand strategy that an entity establishes could become a core source of the firm’s competitive advantage. When perceived as a core component of the firm’s strategy that allows it to receive significant attention, a brand becomes a source of enhanced performance. This arises since a well-informed brand orientation envisages the aspects of resource-based principles of marketing, which would inform the creation, development, sustenance and protection of strong brands (Wong & Merrilees 2007). Such strong brands do not only serve to attract new customers but also maintain strong associations with the existing customers, thus becoming a source of customer loyalty.
Despite this beneficial aspect of a brand, the choice between launching entirely new brands and extending the existing brands has become complex. Whereas entities may find it appropriate to extend the existing brands due to a relatively lower cost than launching effective new brands (Ambler & Styles 1997), factors such as negative brand image could necessitate the establishment of a new brand. Even where the latter – developing a new product – is necessitated, the process could still remain beyond the reach of an entity due to the huge amounts required in activities such as research and development (Ambler & Styles 1997). In respect to these ideas, Carte Blanche Ltd thus needs to establish a well-founded brand strategy that is capable of carrying out new product development (NPD) processes effectively. The subject of this report is thus to identify and assess the new areas of NPD and brand strategy to ensure Carte Blanche Greetings Ltd (henceforth herein CBG) continues to deliver excellent growth and market share over the next 3-5 years. The report first covers the strengths and weaknesses of CBG’s branding strategy, then identifies opportunities and threats presented by the environment, and finally assesses how CBG can capture those opportunities while alleviating susceptibility to risks. Go to part 3 here.