Evaluating Brand Extensions
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Scenario
Cuckoo Cocoa is a small chocolatier company located in a small town. The company offers delicious creations such as truffles, chocolate bars, and boxed chocolates, all of which are made with organic, ethically sourced ingredients. Its target audience is local residents and tourists (who frequent the many ski resorts in the area) who are passionate about chocolate and the environment. Cuckoo Cocoa is well-known in the area for its high-quality offerings and sustainable practices. It is known for giving back to the community by sponsoring green spaces and hiking trails, and its mission is to share great-tasting, ethical, organic chocolate, and cheer.
One of the company’s goals is to open two more locations in the region within five years. Because of its high-quality products and focus on giving back to the community, Cuckoo Cocoa has been promoted through interviews and various regional magazines and has received various regional awards, such as “Best Chocolatier.” It is also popular with tourists on social media.
Cuckoo Cocoa’s success has given the business confidence to fund one of two new product extension ideas in the coming fiscal year. The ideas are to:
• Offer a new line of specialty coffee bean and cocoa powder products to expand its client base and product offerings.
• Offer T-shirts, keychains, and various other branded keepsake products aimed at the tourist population.
Prompt
Based on the target audience, mission, and goal of the company, recommend one of the two product extension ideas to Cuckoo Cocoa’s board of directors.
Specifically, you must address the following rubric criteria:
• Target Audience Alignment: Evaluate how each product extension concept would likely be received by the target audience based on its demographics and psychographics.
• Mission Alignment: Evaluate how each product extension concept aligns to the company’s mission.
• Goal Alignment: Evaluate how each product extension concept aligns to the company’s goal.
• Recommendation: Select one product extension concept to recommend. Use supporting evidence from your analysis to justify your recommendation.
Sample Solution
Based on the target audience, mission and goal of Cuckoo Cocoa, I recommend that they pursue offering a new line of specialty coffee bean and cocoa powder products as their product extension for the coming fiscal year. This decision is based off various demographic & psychographic factors associated with local residents and tourists who frequent ski resorts in area.
For starters most people living in region or visiting during winter season often already have pre-existing interests related outdoor recreation—which means those same individuals likely be strongly receptive any type product which both compliments their lifestyle while also helping support environment due its organic ethically sourced ingredients (Gardiner 2017). Furthermore not only will these items appeal customers’ sense ethical responsibility when making purchases but could potentially lead other areas business growth such increased sales chocolates outside original targeted demographic since now have additional items offer customers seeking sweet treats (Marshall 2019).
In addition, this idea aligns very well with company’s mission sharing great tasting ethical organic chocolate cheer—since now able offer products whose manufacturing processes are sustainably focused from ground up. Not mention offers potential increase revenue streams by introducing different types beans/powders chocolates can use producing future batches thus allowing them compete favorably against larger scale competitors doing same thing.
Finally, compared concept offering tourist keepsake items—expanding line specialty coffee beans/cocoa powders poses less risk terms required capital investment needed manufacture stock since majority what need do obtain these resources usually comes down sourcing more ingredients rather than having create all pieces scratch like would case T-shirts key chains etc.
