Answer to Question #193453 in Management for DINESH

Question

Mr. Ramesh of Unique Industries wants to enter the men’s top end shirts category. The company has a brand “CLINGERS” in the middle segment Rs.350-700. Mr. Ramesh wants to enter the top end Rs.700+ category. He knows there are some formidable brands like Farow .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 Rs.10 crores for sales promotion and advertising budget. Unique Industries is entering the readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name “CLINGERS” 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?

Answer 1

a. Do you think the brand name “Clingers Gold” is right for the top end segment? Yes

Justify your answer - Because maintaining the name 'Clingers' enables customers to identify the company more easily since the products are well known to them by the same name. However, adding "Gold" creates the aspect of uniqueness enabling the firm to stand out as a new brand in the market.

b. Which factors you think needs to be studied before making such entry in the market?

• popularity of the product under the same name
• the uniqueness of the brand