Virgin - Brand Extension or Brand Dilution?
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
"I believe there is almost no limit to what a brand can do. You can ignore those who go on about brand stretching."1
- Richard Branson, Chairman & CEO, Virgin Group, in October 1998.
"Virgin's attitude is, 'Oh, we will just get Richard to do a personal appearance. He will do something cartoonish and it will help the brand."2
- Jim Smith, Co-founder of Ground Zero, a US-based advertising agency involved in the US launch of Virgin Cola, commenting on Virgin's branding strategy, in July 2000.
"There are times that a brand just has to say 'no' to a brand extension. Weak brand extensions weaken the entire brand, and that is a terrible thing to do to a strong brand name."3
- John L. Mariotti, President & CEO, The Enterprise Group, commenting on Virgin's brand extension strategies, in July 2002.
The Debate on Virgin
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