Ozarka Spring Water Company

Ozarka Spring Water Company was founded 1905, bottled in the Ozark Mountains in Eureka Springs, Arkansas (ozarkawater.com). Ozarka water is introducing a new product called coconut water. According to Kotler & Keller 2011, there are questions to ask such as, “does the parent brand have strong equity? Is there a strong basis of fit? Will the extension have the optimal points-of-parity and points-of-difference? How can marketing programs enhance extension equity? What implications will the extension have for parent brand equity and profitability? How should feedback effects best be managed? Once these questions are answered there are some other steps to take into consideration. In introducing the extension of Ozarka water to also include coconut water, there are four steps in ensuring that this brand extension will be successful. The four steps are determine brand and category association, develop brand extendibility proxies, conduct brand extendibility research and create brand extendibility guidelines (Cocoran).

Determine brand and category association is the first step in launching a brand extension. Performing a comprehensive assessment in order to determine what customers need and if they will be receptive to this new line and also determine if the product would measure up to that of the competitors. According to Cocoran, “even an outstanding new product concept, satisfying a significant unmet customer need, will not succeed in the market if it is launched under a brand identity for which it is a poor fit”. In this initial step, a company has to perform a lot of research by interviewing potential customers and or customers who are loyal to the parent brand. In this interview, finding out what consumers think of the brand, how has the brand work for them, and also “uncovering the key associations customers link to the brand and competitive brands in the categories” (Cocoran).

The second strategic step is to develop brand extendibility