In relation to the issue of branding that came up during class discussions, this article by Bloomberg Businessweek talks about some interesting brand choices that Crocs, a well-known shoe manufacturer, is making.
More commonly known for their clog shoes, Crocs now plans to release “high-fashion shoes” for around $80 – $120.
This is quite different from the usual products they are known for and seems to be a fairly risky move, especially since they will be competing against established high-fashion brands. To add to that, Crocs is not usually associated with “high-fashion” and lacks a brand name in the market so it is questionable whether they will be able to convince consumers they are capable of being high-end.
Brand names can be a significant factor in consumer buying habits and, given similar prices, it is likely that consumers will opt for a brand that is well-known for being a luxury rather than Crocs – a brand more well-known for clog shoes. Significant marketing e.g. through celebrity endorsements may be necessary for the shoes to succeed.
This could be an important obstacle Crocs will have to overcome if it wants to carve a niche for itself and gain some share in the high-end shoe market.