Answer to Question #193166 in Management for sushant

Question

3. Unique Industries is contemplating to enter the men’s top end shirts category. The company already has a brand “CLINGERS” in the middle segment (₹350-700). The brand is very popular amongst the target audience. Having got the volumes, 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.It has one of the best retail networks in the country.They are the pioneers of branded shirts in India. decided to keep the brand name as “Clingers Gold”.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.

Answer 1

Yes, since the company was able to grow and build its market in the middle segment, changing their name will highly affect them. Thus they should maintain the brand name and continue building on it in the top segment