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Case
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Reference no. 503-109-1
Subject category: Marketing
Published by: IBS Center for Management Research
Published in: 2003

Abstract

The case discusses the brand extension strategies adopted by the Virgin Group. Detailed information is provided about the values of the Virgin brand and the part they played in the group''s foray into many different businesses. The case also discusses how the Virgin Group''s Chairman and CEO, Sir Richard Branson, became an integral part of the brand itself. It then moves on to discuss the criticism levelled against the group for allegedly diluting the equity of the Virgin brand through reckless brand extensions. The views of various industry observers and analysts are provided along with the views of people employed by Virgin. Finally, the case discusses the future prospects for the brand in light of the various problems the Virgin Group was facing in the early 21st century. The case is structured to enable students to: (1) appreciate a large multinational company''s brand management strategies aimed at cashing in on the equity of an umbrella brand; (2) understand the rationale behind extending a brand into related and unrelated product/service categories; (3) examine the chances of dilution of the brand equity of an umbrella brand after it is extended into many different businesses; (4) understand the different issues involved in brand extensions, and the consequences to the mother brand''s core values; and (5) appreciate the role played by a charismatic entrepreneur in the evolution of a brand and the consequences of the entrepreneur becoming more popular than the brand itself. The case is aimed at MBA/PGDBA students and is intended to be part of the marketing curriculum.
Location:
Industry:
Size:
Large
Other setting(s):
1980s to 2003

About

Abstract

The case discusses the brand extension strategies adopted by the Virgin Group. Detailed information is provided about the values of the Virgin brand and the part they played in the group''s foray into many different businesses. The case also discusses how the Virgin Group''s Chairman and CEO, Sir Richard Branson, became an integral part of the brand itself. It then moves on to discuss the criticism levelled against the group for allegedly diluting the equity of the Virgin brand through reckless brand extensions. The views of various industry observers and analysts are provided along with the views of people employed by Virgin. Finally, the case discusses the future prospects for the brand in light of the various problems the Virgin Group was facing in the early 21st century. The case is structured to enable students to: (1) appreciate a large multinational company''s brand management strategies aimed at cashing in on the equity of an umbrella brand; (2) understand the rationale behind extending a brand into related and unrelated product/service categories; (3) examine the chances of dilution of the brand equity of an umbrella brand after it is extended into many different businesses; (4) understand the different issues involved in brand extensions, and the consequences to the mother brand''s core values; and (5) appreciate the role played by a charismatic entrepreneur in the evolution of a brand and the consequences of the entrepreneur becoming more popular than the brand itself. The case is aimed at MBA/PGDBA students and is intended to be part of the marketing curriculum.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1980s to 2003

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