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Brand Elasticity
The concept of brand elasticity has served to create brands that transcend across sectoral boundaries to leverage the good reputation that their products have earned in one area of production to new lines of businesses. Examples of this include companies such as ITC using their excellent reputation in the FMCG market to enter the processed and ready to eat food businesses – and competing very effectively.
It is essential however, that a brand not spread itself too thin when trying to bend itself – else, it risks the compartmentalization of the brand into two different entities, where neither product shares the common value definition that is the mother brand. So care must be taken to ensure that when brand elasticity is evaluated, the overall sanctity of the brand is kept intact.
Keeping the above in mind, it is possible to classify AXN’s values into both essential and diversifying values. When AXN looks to extend its brand, the core focus must be retaining the differentiating brand values and attributes. The essential values and attributes may be viewed as values that are inherent to most strong brands across the globe in general
Core/Essential Values and Attributes
• Values
o Quality – An essential for creating a strong brand over time
o Respect – In general, a strong brand always commands good respect
o Inspiration – A strong brand inspires both entrepreneurs and competition.
• Attribute
o Smart – A strong brand must be smart in order to maintain its (general) leadership position
o Surprising – A strong brand must have the abi ...