DiscussionsEach module will include a discussion assignment (already completed) Need – substantial (paragraph or little more) responses to at least two classmates postings which are below: Brand extension takes place when an organization utilizes the success of an already established brand to introduce a new product. One of the most successful brand extensions in recent history can be seen in CarMax automobile dealerships. CarMax is an extension of a now bankrupt Circuit City Stores Inc. The concept for an electronics store to extend its sphere of influence into the retail market took place in the early 1990s, when Circuit City Stores Inc. CEO tasked his staff with identifying an emerging new retail outlet with the purpose of extending Circuit City’s sphere of retail influence into the next decade. Through CarMax, Circuit City Stores Inc. is able to establish a solid foothold in the used auto retail market. Eventually in February of 2002, CarMax became so successful that it successfully split from its parent Circuit City Stores Inc. into its own independent, publically traded company. Unfortunately for Circuit City Stores Inc. CarMax not only surpassed Circuit City Stores Inc., but also outlived the company. So using Circuit City Stores Inc. example, one can see how a properly planned and executed brand extension for a new product looks like. CarMax brand extension was not something that was an overnight product, which went from planning to production in a few months. It took Circuit City Stores Inc. Chief Executive Officer Rick Sharp, and Vice President of Corporate Planning Austin Ligon over three years to take their initial concept from idea to the first brick and mortar store. The planning involved broad spectrum market research to identify the opportunity in the used retail automotive market. Extensive market research was also performed to identify the flaws within the intended market. This allowed CarMax to appeal to those customers who were not satisfied with the current options. In order to have a successful brand extension, one must take into consideration all the factors associated with such an endeavor. Utilizing CarMax as an example, one is able to see all the factors that went into the planning process and the time and effort put into developing the CarMax concept. This allowed CarMax to prosper and outlive its parent company. ReferencesCarMax (n.d.). The CarMax Timeline. Retrived April 21, 2016 from Janofsky, M. (1993, October 25). Circuit City Takes a Spin at Used Car Marketing. New York Times. Retrieved April 21, 2016, from Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
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