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The purpose of this article is to describe the rationale behind and analyze the results of a strategy in regards to changing conditions and market share dominance. For more than 20 years, with the growth in available product varieties, product and brand proliferation have become increasingly evident in many consumer markets.

This article examines how three L’Oréal mass market businesses, i.e. L’Oréal Paris, Lascad and Gemey-Maybelline-Garnier (GMG), managed proliferation activities between 1988 and 2012 on their domestic market. Data were extracted from the information resources, inc. (IRI) Census and Sample Databases (retail panel data), and information was collected from internal sources and semi-structured interviews with top executives. Brand performance was assessed using panel data structure analysis, as recommended by IRI and Nielsen. Some data, as they remain confidential, were not included in the paper.

The study reveals that when opportunities are lacking, demand is declining, and competition is fierce – the situation that marks most mature markets – a proliferation strategy actually can yield diminishing results and reduced brand dominance.

Offering broader lines appears to generate confusion and to be counterproductive in relation to theoretical assumptions. Additional research on proliferation strategies is needed, particularly in declining market conditions, which implies diminished demand and market saturation due to increased competition and isomorphic practices.

When deciding to extend product lines, managers should take into account competition and more qualitative factors than those included in the models developed by and for store brands. The respective positioning and marketing strategy (i.e. challenger and leader) of the brands involved have also to be considered.

Prior research on proliferation strategies has relied on strong assumptions such as increase in demand and unsaturated markets. Through these case studies, this article shows that making the shelf space denser affects brand dominance, particularly when market conditions change. These results challenge current thinking as, in facing internal and external contingencies, managers might think which scenario is most favorable for maintaining a dominant position: changing the structure of the market by reducing (i.e. concentration) or increasing the number of brands/products in the market.

This paper first attempts to analyze the issue of brand proliferation by a monopolist allowing transfer pricing as a channel to bridge headquarters and brand divisions, and then to view how the headquarters uses transfer pricing as a strategic device to encounter intra‐brand competition, inter‐brand competition and cross‐border profit‐shifting under an oligopolistic market.

This paper models cross‐country interactions in a Cournot‐Nash framework, and characterizes equilibrium that involves both transfer pricing and output decision. MNE's behavior is based on a two‐stage process in which the centralized headquarters' prior action on setting transfer pricing is to backup the decentralized subsidiaries in their output decision‐making.

It is demonstrated that MNEs have the incentive to manipulate their transfer prices in order to shift profit cross‐border. Higher transfer pricing enables brand divisions to collude easier in the intra‐brand competition model, and the level of transfer price hinges upon the strength of intra‐brand competition and inter‐brand competition. In addition, transfer pricing is affected by tax differences between two countries.

This paper provides the theoretical underpinning to see how headquarters may use transfer pricing as a strategic device to face intra‐ and inter‐brand competition that is visibly evident in many diverse industries.

In our hypercompetitive times, product and service differentiation may start out as value innovation but end up as too many similar choices for customers. The risk of this happening increases when several or all segments of the market are crowded with competitors seeking differentiation. This paper aims to investigate this issue.

The paper looks at how this brand proliferation currently grips the hotel industry.

The paper finds that, as illustrated by the hotel industry example, there are three primary ways that companies manage the threats from rivals who introduce similar products.

A hotel industry case is analyzed from a current and historical perspective.

Managers who face this problem can: select certain threats to respond to; overwhelm the threats, choosing to fight on many fronts; and outflanking their rivals by opening new positions or at the extremes of the expected price line.

The paper applies some of the oldest strategic principles to a new challenge – differentiation proliferation:”overwhelm the threats” is a strategy of applying mass or scale to the challenge; “select the threats” is competing where you have the superiority of the defense; and “outflank the threats” is the strategy of the indirect approach.

This paper aims to investigate how the current size and structure of a branded product portfolio impacts new product performance for fast-moving consumer goods (FMCG), testing the long-standing proposition that extending a firm’s brand and product portfolio too far is a dangerous proposition that may damage the market performance of the firm’s new product launches.

Aspects associated with brand size and structure that may impact new product performance are operationalized along two key dimensions: within-category (scale) and cross-category (scope). The impact of the brand’s scale and scope on the sales performance of newly commercialized products by the brand is empirically investigated in the context of FMCG. Over 2,000 new products launched in 2009 and 2010 across 31 food and non-food FMCG product categories in the USA are included in the regression-based analysis.

The authors find strong evidence that brands with broader within-category scale and cross-category scope overall are associated with more successful new product introductions, and that these influences generally are driven more by increased product trial than by repeat or persistence. The authors argue that the higher new product performance observed for more established and proliferated brands may be attributed to advantages of firm product development abilities and product acceptance by the marketplace.

The current results serve to temper the strong cautions set forth in much of the marketing literature about the dangers of overextending the firm’s brand and product portfolio. These results also suggest that future research should be conducted to further understand more nuanced implications of how best to grow the scale and scope of the firm’s brand and product portfolio.

This paper shows that consumer preference heterogeneity affects whether multinational firms serve local markets via imports or local production. Firms are least likely to choose local production over imports for product varieties that have relatively inelastic demand because transport costs have a smaller impact on the firm’s local profits for these products. The results suggest that there is complementarity between centralized production, with local market access via imports, and strategies that maintain low price elasticities at the brand level, such as advertising and within-brand product proliferation. A partial equilibrium study of the laundry detergent industry in Western Europe illustrates how firms and consumers interact at different levels of transport costs and reveals the product varieties that are most and least likely to be manufactured locally when transport costs are high.

This study aims to compare academic prescriptive models on how to choose a branding strategy on the continuum from a “branded house” to a “house of brands” with real-life branding strategies of leading companies.

Data from an executive survey, observations and desk research on 75 leading companies in Austria are analysed with multilevel weighted least squares (WLS) regression.

Branding strategies for products are determined by industry (23 per cent of variance), the overall strategy of the company (28 per cent), the remaining variance being product-level decisions deviating from both. Service and consumer durables companies lean more towards corporate branding than consumer nondurables. On the company level, synergies in advertising, e-commerce and e-CRM (customer-relationship management) increase the usage of shared brands. A higher company age leads to brand proliferation. On the product level, quality differences between products, the emphasis on and differences in experiential product positioning and, marginally, the symbolic differences between products favour individual brands.

Future research should investigate additional markets, additional drivers, small and medium-sized entreprises (SMEs) and employ additional measures.

The study informs brand-architecture audits with benchmarks from leading companies, calls for a view of brand architecture more flexible than ideal-type categories proposed in literature and cautions against management inertia, industry standards and trends in designing branding strategies.

This study is the first quantitative cross-industry multi-level study on real-life branding strategies. It also applies a new conceptualisation and measurement of branding strategy.

Explores the concept of consumer confusion; what causes it, how consumers react to it and how marketers can influence it. The focus proposed differs from previous work by integrating the notions of stimulus overload and stimulus similarity as well as acknowledging conscious and unconscious confusion. The marketing determinants of confusion are classified and an inventory of confusion reduction strategies is discussed. Examines the marketing and policy implications of confusion, presents a checklist for brand managers to use when conducting a confusion audit and highlights areas for future research, especially into measurement of the concept.

The purpose of this paper is to describe how one company built and sustained market leadership by implementing a market‐oriented business strategy involving defensive and offensive management.

With an historical approach, this article examines how L'Oréal's Consumer Products Division increased its dominance in its domestic cosmetics industry. Data were extracted from the IRI Census Database (retail panel data). Some data, as they remain confidential, were not included in the paper.

The transition from an offensive to a defensive management style (and vice versa) is part of the dialectic in relations between the company and its environment, including consumers (demand), competitors (their behaviour in the market) and market conditions (growth, stability, decline) in an extended sense (see Kohli and Jaworski).

The joint management of offensive and defensive market‐oriented strategies leads to enhanced competitive positioning and increased market share of a portfolio of brands and products.

The trade‐off between offensive and defensive management, involving whether managers are influenced by or influence the structure and the behaviour of market players, depends on their mental disposition toward challenges in increasingly competitive mass markets.

Prior discussions of offensive and defensive management approaches have remained mainly theoretical. Through the illustration of the undisputable leader of the cosmetics sector, this study offers a practical example that can help companies reconsider how they differentiate themselves from competitors with respect to market conditions. This case offers an initial investigation of offensive and defensive management.

The purpose of this paper is to explore farmers’ intentions to engage in food brand development schemes and identify the factors that impact this.

By assuming the utility maximization behavior of farmers, based on data collected from 539 fruit and vegetable producers, this study estimates an intention to participate and a willingness to pay model.

Three groups of factors determine the utility the farmers derive and subsequently their engagement in brand development. Farm business characteristics include farmers’ age, the attainment of quality certification and cultivated area, while psychological factors include farmers’ attitudes toward local reflections of the brand, perceptions regarding the need for farm business external support and consumers’ interest, as well as farmers’ commitment to quality requirements. Farmers’ strategies related to the share of products sold by cooperatives and to individually use the brand also determine their engagement in a brand development scheme.

Future research should distinguish producers according to the marketing channel they choose and their industry, and explore the intentions of intermediate marketers.

Marketing cooperatives should undertake initiatives to develop local brands effectively, taking into consideration the factors that impact farmers’ engagement, while food marketing firms should properly adapt their purchasing and promotion strategies. Public authorities should formulate a policy mix that enhances farmers’ knowledge related to marketing issues and encourages farmers to strengthen their positions in the marketplace.

The research reveals a strategic proactive behavior of farmers favoring the development of local brands, and provides insights into the factors that impact farmers’ adoption decisions.

This paper aims to provide a comprehensive understanding of how brand management research has evolved to inform future hospitality research agendas that are both theoretically and practically innovative and relevant.

A review of leading tourism and hospitality journals, augmented by a review of leading mainstream marketing and services journals, over the past 20 years was undertaken. Focusing on papers with an emphasis on the brand, as reflected in the title, over 263 articles were reviewed.

In contrast to the more established mainstream literature, brand management research in the hospitality literature is limited in both its depth and breadth. In seeking to go beyond mere replication, and in consideration of industry needs, the review informs the articulation of an integrative research framework that reflects the extant literature and illuminates new research pathways that, in anticipation of making a significant contribution to brand management theory, will enhance hospitality academic and practitioner understanding of brand management.

The comprehensive critical review affords insight into areas of brand management research innovation, both from a topic and methods perspective. The proposed research agenda not only reflects industry priorities but also responds to gaps within academia’s current understanding of brand management theory, particularly within a service context. Grounded in classical theories and industry insight, the pursuit of topics advanced in the research agenda are expected to make a significant contribution to the theoretical understanding of the brand management concept in an applied setting, in addition to providing timely and relevant insight to practitioners seeking to stand out from the crowd.

With brands dominating the hospitality landscape, insight derived from thought leading and innovative research is needed. With no comprehensive review of brand management research within the tourism and hospitality literature, clarity with respect to what is known and, more importantly, what is not known is not apparent. This paper addresses this paucity and, in doing so, gives hospitality academics a clear pathway to conducting meaningful and relevant brand management research from both theoretical and practical perspectives.