Deck 7: Managing Brand Growth

Question 1

Growing the brand by expanding its presence and reach reflects what type of logic?

A) Radical innovation
B) Exploitation
C) Exploration
D) Design thinking

Answer 1

B

Question 2

What type of logic is a line extension?

A) Exploitation
B) Exploration
C) Disruptive innovation
D) None of these

Answer 2

A

Question 3

Adding a high-priced version of your existing product line is what type of extension?

A) Co-branding
B) Category extension
C) Line extension
D) None of these

Answer 3

C

Question 4

A supermarket wants to offer banking services. What type of extension is this?

A) Co-branding
B) Category extension
C) Line extension
D) None of these

Question 5

Why do organizations extend their brands?

A) To growth sales
B) To keep the brand relevant
C) To recoup investment
D) All of these

Question 6

What are the dangers of a line extension?

A) Could dilute parent brand equity
B) High risk of failure
C) Could narrow brand meaning
D) None of these

Question 7

What are the dangers of category extension?

A) Could dilute parent brand equity
B) High risk of failure
C) Could narrow brand meaning
D) None of these

Question 8

What are the benefits of category extension?

A) Leverage brand capabilities
B) Expand the brand's meaning
C) Gain greater efficiencies in resource use
D) All of these

Question 9

What are the benefits of line extension?

A) Increase sales
B) Lower risk of failure
C) Could expand brand meaning
D) All of these

Question 10

Brand extensions are dangerous because they can dilute parent brand equity. Is this true or false?

A) True
B) False
C) True, but only for failed category extensions
D) True, but only for failed line extensions

Question 11

Brand extensions are dangerous because they can cannibalise sales. Is this true or false?

A) True
B) False
C) True, but only for category extensions
D) True, but only for line extensions

Question 12

What does cognitive fit refer to?

A) Whether the extension is authentic
B) Whether the extension makes me think
C) Whether the extension makes sense in relation to parent brand image
D) None of these

Question 13

What does brand extension authenticity refer to?

A) Whether the extension is sincerely motivated?
B) Whether the extension makes sense in relation to the parent brand?
C) Whether the extension makes me think
D) None of these

Question 14

What drives brand extension authenticity?

A) The extension is cheaper than parent
B) The extension is more expensive than the parent
C) The extension grows sales
D) The extension sustains the brand's essence

Question 15

Fighter brands are used to achieve what goal?

A) To take the brand into luxury markets
B) To make the parent brand appear stronger
C) To protect the brand against low price competitors
D) None of these

Question 16

What is an important objective for a line extension?

A) Growth in users
B) Enhanced brand equity
C) Increased usage situations
D) All of these

Question 17

You work for a luxury fashion brand. You receive an email from another manager of a luxury fashion brand proposing a co-branded range. What do you do?

A) Agree to the co-branding opportunity
B) Turn the manager down because co-brands are risky
C) Turn the brand manager down because the cobrand is likely to offer nothing new to consumers
D) None of these

Question 18

As a luxury fashion brand manager, you receive an email proposing a cobrand from your counterpart at Supreme, a cult shoe brand. What do you do?

A) Reject the offer as the cobrand would undermine your luxury status
B) Accept the offer as both brands will benefit from this association
C) Reject the offer as co-brands are risky
D) Turn the brand manager down as the cobrand offers nothing new to consumers

Question 19

When co-brands work, they have which of the following outcomes?

A) They benefit one partner at the expense of the other
B) Both brands gain from the relationship as their image is enhanced
C) Increased market share
D) Increased prices

Question 20

Stella McCartney partnered with H&M. McCartney is a luxury brand known for championing sustainability whereas H&M is known for low price, unsustainable fast fashion. What is likely to be the outcome for the co-branded range?

A) McCartney will be seen as younger and more fashionable while H&M will be seen as more sustainable
B) Consumers will reject the cobrand as it makes no sense
C) The H&M connection will dilute the luxury position of McCartney
D) The McCartney connection will dilute the value position of H&M

Question 21

Prior to its name change, the Cass Business School identified as Cass Business School with City University of London placed under it in smaller type font. What type of architecture strategy is this?

A) Different identity
B) Shadow endorser
C) Linked name
D) Token endorsement

Question 22

Beats by Dre is what type of architecture strategy?

A) Token endorsement
B) Shadow endorser
C) Strong endorsement
D) Co-driver

Question 23

What are the benefits of a house of brands strategy?

A) Efficiency
B) Cross selling
C) Tap into loyal customers
D) Alternative positionings of different brands

Question 24

What are the benefits of a branded house?

A) Alternative positionings of different brands?
B) Can appeal to lots of segments in the same category
C) Ability to cross sell
D) None of these

Question 25

When a branded house acquires another brand, what should it do?

A) Use endorsement strategies to signal ownership change without upsetting loyal customers
B) Turn the acquired brand into the branded house immediately
C) Keep the brand separate forever
D) Develop a new brand identity for the house

Question 26

The downsides of a branded house strategy are?

A) You cannot cross sell
B) Consumers want choice, not one brand
C) If the brand suffers a crisis, the whole group suffers
D) All of these

Question 27

The downsides of a house of brands strategy are?

A) If the brand suffers a crisis, the whole group suffers
B) You cannot cross sell
C) Too many brands confuses consumers
D) None of these

Question 28

What disadvantages does a house of brands strategy have against a branded house?

A) Too much choice confuses consumers
B) A lack of clear positioning
C) Being unable to concentrate marketing resources into one brand
D) All of these

Question 29

What disadvantages does a branded house have against a house of brands?

A) Consumers like choice
B) Retailers prefer more brands to one
C) Different brands can reach different needs
D) None of these

Question 30

Why are some house of brands reducing the size of their portfolio?

A) They want to become a branded house
B) The want to increase opportunities for cross selling
C) It frees up resources to invest in star brands and new categories
D) None of these