Mr. Ramesh has decided to keep the brand name as “Clingers Gold”. He has decided to allocate ₹10 crores for sales promotion and advertising budget. Unique Industries is simultaneously entering the readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name “CLINGERS” to leverage the success of the brand name to the two new categories.
a. Do you think the brand name “Clingers Gold” is right for the top end segment? Justify your answer.
b. Which factors you think needs to be studied before making such entry in the market?
Yes, the brand name “Clingers Gold” is right for the top end segment. Using an existing brand name is the best option because it is easiest to recognize, more people will be aware of its presence, and it will be easier to grow as new members enter the existing customer base.
Factors that need to be studied before making such entry in the market
1. Experience or skills
It is important to find new and improved ways to outperform the market.
2. A company or a program success
An entrepreneur has to be aware of the product's success and scale. Profit margins and growth prospects will be included.
3. The startup costs of a company
Before entry to the market one has to understand the costs of starting and running a profitable company.
4. Source of money and funding
This normally involves both cash and properties that can be used as collateral for a loan.
One must first consider his competitors and what they are doing in order to be competitive in the market.