Contemporary Issue - Brand Extension - Research Paper Example

The paper will deal with the basics of brands and the concept of brand extension. A thorough explanation of brand extension and its various types have also been included in the paper. The paper also deals with in detail, about Georgia Armani, the brand and its various products. Also, its latest new expansion of moving into the hotel business has also been discussed here. Before moving into the main issues that Georgia Armani faces in terms of the brand value, the essence of the brand, and also an identity of the brand, it is essential to understand the topic of brands and brand extensions.

According to the AMA brand can be defined as, ‘A name, term, sign, symbol, or design, or a combination of them which is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of competitors’. A brand is like the image of a company and it provides companies with a separate recognition of their own. Brand Equity has been defined as ‘the brands' assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or service’.

There has been a lot of research that has been conducted on the importance of brand equity as it has been recognized to help improve the profitability of the brand choice and also leading to other benefits like brand loyalty and acting as a protection from the threats of competitors. Aaker also went on to divide and categorize this into the following categories: a) Brand Awareness, b) Perceived Quality, c) Brand Association and d) Brand Loyalty.