Wellcome Kappa promotion




Kappa was once a popular brand of bags for a short while. People still remember it and there is some residual awareness. Nevertheless, we can't really remember what is so special about it. It lacks salience as there hasn't been any new news from it for a long time. It ends up like a nowhere brand. Building it back up takes a lot of investments over time. Another way of getting short term business is to milk it through giveaway or redemption promotions. You can get a bit of volume sales by tying up with others like supermarket chains, credit cards and so on and give away your products free or have them redeemed at a low prices. It's the quickest way to trade brand value for volume. Once this kind of promotions are done on your brand, it is certified dead. After it's given free or redeemed at low price, do you really expect consumers will still buy it at higher prices in the future ?


Comments

Michael said…
Yes, i saw this in HK few weeks back while i was there. This is a very direct attach from Vodafone for sure. i believe the telcos will have to start competing on values rather than price in the near future.
12:03 pm
wildcard said…
This is just a bad example how the brand principal manages (or wants to kill) its brand equity.

Kappa is an Italian sport brand but how much association you get with luggage / travel goods?

It seems that Kappa only care about the royalty fee they will get from this licensing deal but it will hurt the brand in the long run.

Pierre Cardin is the classic example. It just killed itself by licensing itself to all kind of different products which are completely not related to its core brand value (ie. fashion).

People nowadays just take Pierre Cardin as a joke when it come to mention it as a fashion brand.

Licensing is a double edged sword and must strike a good balance between additional business and long term brand equity.
5:49 pm
Louis Lau said…
Yes, another example is Benetton.
5:58 pm
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