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Pages:
5 pages/≈1375 words
Sources:
5 Sources
Level:
APA
Subject:
Business & Marketing
Type:
Term Paper
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
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Topic:

KFC'S Nail Polish: Prudence of KFCs Brand Extension (Term Paper Sample)

Instructions:

The client wanted the writer to analyze the brand extension measures undertaken by KFC in Hong Kong. The KFC Nail polish was one of the identified brand extension strategies undertaken by the company. The sample revolves around examination of its success.

source..
Content:
KFC’s Nail Polish

Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc472854197 \h 3Introduction PAGEREF _Toc472854198 \h 5Persuasion of the TV Ad PAGEREF _Toc472854199 \h 5Role of Brand Extension PAGEREF _Toc472854200 \h 5Prudence of KFC’s Brand Extension PAGEREF _Toc472854201 \h 6Transferability of the Nail Polish PAGEREF _Toc472854202 \h 7Creating Excitement around Hong Kong PAGEREF _Toc472854203 \h 7Other Brand Extension Ideas PAGEREF _Toc472854204 \h 8Conclusion PAGEREF _Toc472854205 \h 8Bibliography PAGEREF _Toc472854206 \h 9
Executive Summary
KFC is a renowned brand worldwide. The company attributes its success to the secret chicken flavor. The current paper seeks to examine a brand extension strategy embarked by the company’s division in Hong Kong. The new brand is an edible nail polish that is aimed at creating excitement around KFC’s brand in the city of Hong Kong. The paper has recognized that the role of brand extension is to fill in marketing gaps in the targeted population in addition to creation of more profits. Further, the paper has found that it is possible for the nail polish to be launched in other countries, albeit with a few challenges.
Introduction
Corporates are always trying new ways of increasing profits. One of the common techniques used by multinational corporations is brand extension. Ideally, brand extension refers to the state of using an established brand to market a new product. The American fast food company known as KFC has recently used this technique to sell one of its latest products in its Hong Kong Market. The new product is a nail polish with a fried chicken taste and which is purposed to increase the excitement around KFC’s brand in Hong Kong. This paper is dedicated to an examination of this new product.
Persuasion of the TV Ad
The TV ad is highly persuasive to the younger consumers in the Hong Kong market. The designers of the ad targeted consumers between the age of 18 and 35, who are excited by new luxurious products. It also targeted women who are interested in beauty and fashion. The ad appeals to the emotions of this population due to the colors and nature of the bottles used to contain the product (BBC, 2016). The colors used in the ad are bright and attractive. Such a condition makes it attractive to the said population. In addition, the colors used in the ad are similar to the two flavors that are available for the nail polish. The characters in the video ad are Asian, thus, localizing the product and making it appealing to the Hong Kong population. Finally, the ad repeatedly shows a woman licking her fingers while holding a bottle of the nail polish. The foregoing ideas make the ad very appealing to the targeted population.
Role of Brand Extension
Companies such as KFC utilize brand extension for several reasons. One of the main reasons, according to Wobben (2013), is to leverage brand equity. Leveraging brand equity assists companies to introduce complimentary products in the same line of the existing products. For example, KFC prides itself in flavored chicken that no other company has been able to produce. The new nail polish is an extension of the same recipe to a whole new different product. This strategy is used to surprise customers and surpass their expectations while enabling the company to continue with its product innovation activities. Coca-Cola’s brand extension strategy can be used to illustrate this position. The company produced the Diet Coke brand as an extension of the Coca-Cola classic beverage. The product helped the company in filling the gap that its original brand left, especially for people with type 2 diabetes and those who were concerned with their sugar intake (Gelder, 2003). Undeniably, brand extension is also a strategic way of increasing profits and increasing the awareness of the brand in the targeted market.
Prudence of KFC’s Brand Extension
Indeed, KFC made a prudent by choice by extending its brand to the chicken flavored nail polish. There exists several reasons that demonstrate that the company made a wise choice. For example, the nail polish product is in line with KFC’s main motto which states that, “it’s fingerlickin good.” The nail polish is edible and people consume it by applying it on their nails and licking their fingers to derive the taste. This nail polish is an actual line extension of the chicken that KFC has been making. It has the same spice taste but lacks the original chicken flavor. Some of the people interviewed by media companies including BBC, demonstrate that people have mixed reactions to the product (BBC, 2016). Some argue that it is a good idea while other are extremely against its introduction. KFC seems to have followed the Coca-Cola model of filling the gaps created by the chicken brand. Since more people are now trying to watch their diet, this product will assist in reducing cravings for chicken. By licking the nail polish, the customer will have quelled his craving for chicken.
Transferability of the Nail Polish
This part examines whether KFC could launch the same nail polish in other countries successfully. Nothing, from an objective assessment of the circumstances, limits the ability of the company to launch the product in other jurisdictions. The nail polish has been accepted widely in Hong Kong and the surrounding towns. People are already using it and the people have already confirmed that it meets the needs that it was designed to meet. The product is likely to meet mixed responses when introduced in various markets around the world (Sharma, 2016). While some liberal and advanced countries might have no problem accepting it, other conservative ones might resist it at first. For example, some cultures in Sub-Saharan Africa and some sections of Europe find it gross and unacceptable for women to lick their fingers. Such factors would limit the acceptability of the product. However, KFC can overcome these limits by embarking...
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