PRESENTATION

ON

BRAND EXTENSION

Developed by:VARUN JANDIALMBA-32-2K5The Business School, University of Jammu.

Brand

BRAND It is a name ,term, sign , symbol ,or a

design or a combination of them intended to identify goods and services of one seller or a group of sellers and to differentiate them from those of competition.

BRAND EXTENSIONIs a marketing strategy in which a firm

that markets a product with a well-developed image uses the same brand name but in a different product category.

Top Brands

NAME COUNTRY VALUE($mn)

Coca-Cola U.S.  67,000Microsoft U.S. 56,926IBM U.S. 56,201GE U.S.  48,907Intel U.S.  32,319Nokia Finland 30,131Toyota Japan  27,941Disney U.S. 27,848

Brand Extension for New Product Introduction

WAYS

1. Apply the existing brand

( parent brand) in some way.

Eg: Videocon - TV, Wshg mc

2. Combination of new brand with existing brand.

Eg: Levi’s Dockers

Categories of Brand Extension

1. Line extension

Parent brand used to brand a new product that targets a new market segment within a product category .

Eg: Garnier for dry hair, oily hair…

Categories of Brand Extension

2. Category Extension

Different product category.

Eg: Nike – shoes , T-shirts, watches…

Strategies for Brand Extension

•Introduce same product in different form–Eg: Dettol liquid

•Introduce products that contains the brand’s distinctive taste , ingredient , or component.

–Eg: Amul butter ,

milk , ice-creams.

Strategies for Brand Extension

•Introduce companion product.–Eg : Duracell flashlights

•Introduce product relevant to customer franchisee of the brand.

–Eg: Nokia accessories

•Introduce firm that capitalize on the firm’s perceived expertise.

–Eg: Casio , Canon, etc.

Strategies for Brand Extension

•Introduce product that reflect brand distinctive benefit, attribute or feature.

–Eg: Gillette cartridges, mach 3, sensor, ..

•Introduce product that capitalize on product distinctive image or prestige of the brand.

–Eg: Bosch & Lamb

Brand Extension Advantages

1. Facilitate new product acceptance

• Reduce risk perceived by customers• Eg: Sony cd-roms

• Reduce introductory cost and follow-up programs• Saving of 40-80% : Stanford• Eg: Jaguar

Brand Extension Advantages

•Increase the efficiency of promotional expenditures

–Focus only on product.• Eg: Kellogs chocos

•Avoid cost of developing a new

brand–Eg: Tata , L’Oreal Zazu – Hinsdale

Brand Extension Advantages

•Allow for packaging and labeling efficiencies

–Eg: Knorr Soups

Brand Extension Advantages

2. Provide feedback benefits to the parent brand and company

–Clarify brand meaning•Eg: Xerox (X) digital logo & new lines

–Enhance parent brand image•Eg: Nike shoes , clothing..

Brand Extension Advantages

–Revitalize brand•Eg: Jaguar 1988 model –Emxi

–Permit subsequent extensions•Eg: Levi’s Dockers Authentics, Britannia 50:50 chutkule, TVS Victor

Brand Extension Disadvantages

• Confuse or frustrate customers–Eg: Head & shoulders

• Fail / Hurt parent brand image–Eg: Audi 5000 ( Quattro)

Brand Extension Disadvantages

•Cannibalize parent brand sales–Eg: Bajaj pulsar, Diet Coke.

• Dilute brand meaning–Eg: GM Cadillac Cimarron.

•Forgo chance to develop new brand

–Eg: Disney Touchstone films

Bibliography

• Building , measuring & Managing Brand Equity – Kevin lane Keller

• Managing Brand Equity– David Aker

• Brand positioning– Subroto sen Gupta

• Marketing management – Philip Kotler

• www.businessweek.com• www.emeraldisight.com• www.brandstd.com

THANK YOU