Brand Stretch Spectrum And Market Product Grid The

Brand Stretch Spectrum and Market Product GridThe launch of a new product and its success in the market is influenced by many factors. These factors may include whether the product is filling a gap in the market, how it is packaged, priced, distributed or promoted, and/or its uniqueness. For a healthcare organization, these factors are very critical because of the sensitivity of the industry. An organization can launch a product under an existing parent brand or as a new brand. However, before choosing any of the two alternatives, it is very important to carry out a thorough evaluation of the branding strategies to adopt. Firstly, it is important for an organization to understand its market and brand identity and position. Understanding the market entails knowing how the company and its products are perceived. For instance, if a company has a very successful brand name, launching a new product on the existing brand is a good option as it reduces consumer’s perception of risk as well as increasing efficiency and effectiveness of promotional initiatives and reducing marketing costs. However, this option has its downsides since if the main brand name fails, then all the products under the name fail as