Answer to Question #189510 in Management for Kushal Lakhanu

Question

Mr. Ramesh of Unique Industries is contemplating entering the men’s top-end shirts category. The company already has a brand “CLINGERS” in the middle segment (₹350-700). Having got the volumes, Mr. Ramesh now wants to play the value game and enter the top end (₹700+) category. He knows there are some formidable brands like Farow etc. that will make life extremely difficult for Unique Industries. However, it has one of the best retail networks in the country. They have their own factory, which ensures regular quality supply. They are the pioneers of branded shirts in India. 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. 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?

Answer 1

a)

The present name of the brand is the best to use since many people know about its existence thue it shall be easier for it to grow because new members will add to the current clients.