week 7 online material # 3 Flashcards
Brand Stretch – How Alcohol Brands Are Pushing Marketing Boundaries
Q: What is ‘brand stretching’ in alcohol marketing?
A: Extending a brand name to new products or product categories to expand reach and visibility, often used by alcohol brands to bypass advertising restrictions.
Q: How do line extensions help alcohol brands?
A: Line extensions involve introducing variations of existing products to appeal to niche markets and diversify offerings while maintaining brand loyalty.
Q: When did branding as a concept first become prominent, and why?
A: Branding emerged during the industrial revolution of the 19th and 20th centuries to help distinguish products and foster consumer loyalty.
Q: Give two examples of line extensions in the alcohol industry.
A: Bud Light (lighter version of Budweiser) and Jack Daniel’s Tennessee Honey (sweeter whiskey variation).
Q: What is a category extension? Give an example.
A: Category extension involves using a brand name for a different product category. For example, Virgin extended from music to airlines.
Q: Why did Coors’ category extension into spring water fail?
A: Coors Spring Water conflicted with the established image of Coors as a beer company, leading to consumer confusion and failure.
Q: What is Alcohol-Branded Merchandise (ABM), and why is it used?
A: ABM includes products like T-shirts and mugs with alcohol brand logos. It is used to maintain brand visibility and build consumer loyalty without traditional advertising.
Q: What ethical concerns arise from the use of Alcohol-Branded Merchandise (ABM)?
A: ABM often targets young audiences, normalizing alcohol branding and potentially fostering early brand loyalty before legal drinking age.
Q: How do sponsorships help alcohol brands reach wider audiences?
A: Sponsorships of events, like Heineken’s UEFA Champions League sponsorship, enhance brand visibility and associate the brand with celebration and social experiences.
Q: What is the primary goal of brand stretching in the alcohol industry?
A: To bypass strict advertising regulations, maintain brand visibility, and build brand equity among diverse consumer segments.
Q: How does brand stretching allow alcohol brands to reach underage audiences indirectly?
A: By associating their brand with non-alcoholic products and merchandise, alcohol brands create visibility and familiarity among young people, indirectly influencing them.
Q: What is the difference between line extension and category extension?
A: Line extension refers to variations of an existing product, while category extension uses the brand name for entirely new product categories.
Q: How did Jack Ackroyd influence LCBO modernization?
A: This is incorrect, Jack Ackroyd was related to LCBO reforms, not alcohol branding.
Q: Why is cultural normalization of alcohol branding a concern?
A: It makes alcohol branding an accepted part of culture, potentially leading to higher consumption rates and public health issues, especially among younger demographics.
Q: What was the primary criticism of alcohol branding mentioned in the article?
A: The ethical implications of promoting alcohol brands to young audiences through brand extensions, sponsorships, and ABM, which bypass traditional advertising regulations.
