Chapter 6 – Internet Exercises
‘The Value of Brand Names of Online Companies’
Strong brand names are important tools for creating and maintaining a loyal customer base. We
often take brand names such as Coke, McDonalds, and BMW for granted because they have been
around for quite some time and are well known to us. However, to become this well known and to
establish a brand name is a difficult, time consuming, and expensive process.
A brand is a distinguishing name or symbol such as a logo or a trademark. It is carefully designed
to identify products and to differentiate those products from competitors' offerings. For instance,
in the fashion industry, Polo, Nautica, and Tommy Hilfiger are some well-known competing
brands.
These companies follow a corporate branding strategy. They have established brand identity by
using their corporate names to identify their entire product offerings. This is a particularly good
strategy when all products fit within relatively narrow lines. Polo, Nautica, and Tommy Hilfiger use
the advantage of corporate branding by designing a common advertising campaign and sales
promotion program to support all their products. These popular corporate brand names also
facilitate the successful introduction of new products.
Just recently, Polo opened its online store and now offers men, women, children, gifts, fragrance,
vintage, and travel items for sale under the Polo name. Presently, Nautica's and Tommy Hilfiger's
sites offer only information on the products that they sell. However, both sites help with locating
the nearest store. Tommy Hilfiger offers men, women, jeans, kids, home, and toiletries items
under the company's brand name. Nautica offers sportswear, swimwear, tailored items (dressier
items), and sleepwear under its umbrella brand name.
1.
How can you identify a Polo product?
2.
How can you identify a Tommy Hilfiger product?
3.
How can you identify a Nautica product?
4.
Visit the Polo Web site. What are some of the product categories sold under the Polo
brand name?
5.
Can you buy products at the Nautica and Tommy Hilfiger Internet sites? How about the
Polo site?
Birgit Leisen