Brand Extension Mite 100527001930 Phpapp02

8/2/2019 Brand Extension Mite 100527001930 Phpapp02

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What Is A Brand

A BRAND is symbolic embodiment ofall the information connected to aCompany, Product or Service.

It serves to create associations andexpectations from products made by aproducer, in the mind of the consumer.

The key objective being to create aRelationship of TRUST with itsconsumers.


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Brand Strategy

Line ExtensionsBrand Extensions

Multi-brands

New Brands

Brand Sponsor

Manufacturers BrandPrivate Brand

Licensed BrandCo-branding

Brand Name Selection

SelectionProtection

Major Brand Decisions


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Brand Strategy

Line Extension Existing brand names extended to new forms,

sizes, and flavors of an existing product category.

Brand Extension Existing brand names extended to new product

categories.

Multi-brands

New brand names introduced in the same productcategory.

New Brands New brand names in new product categories.


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BRAND EXTENSIONS

Using an existing brand name topromote a product in a differentcategory, is Brand Extension.

The key difference between line andbrand extension is the productcategory.

In line extension the Product Categoryremains constant whereas in brandextensions product category is a

variable.


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BRAND EXTENSIONS

Ponds - Cold cream, Toilet soapShampoo, Tooth paste, Moisturizinglotion, Talc & Face wash.

LG Television, Refrigerators,Computer monitors, Microwaves, AirConditioners, Washing Machines &Mobile phones.

Park Avenue Shirts, Shaving cream,Jeans, Belts, Perfumes, Soap &Razor.


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LINE EXTENSION

The parent brand is used to brand anew product that targets a new marketsegment with in a product category

currently served by the parent brand. A line extension often adds a different

flavor or ingredient variety, a different

form or size, or a different applicationfor the brand.


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Cokes Line Extension


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Head

&

Shoulder

s

Extensi

on


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CATEGORY EXTENSION

The parent brand is used to enter adifferent product category from thatcurrently served by the parent brand.


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ITCs Category Extension


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Why Brand Extensions?

Leveraging brand equity/value byintroduction of logical & complementary newproduct categories

E.g HP

Product Innovation to surpass consumerexpectations

It increases awareness of the brand name Increases profitability from offerings in more

than one product category.(widening the netto catch new consumers.)

Its a great way to reinforce a brand, reachout to new customers, create a BUZZ


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Why Brand Extension?

Cost of New launches

Promotional Efficiency

Consumer Benefits

Feedback effects

Returns


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Advantages Of BrandExtensions

Improve brand image

Reduce risk perceived by

Customers

Permit consume variety-seeking


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Advantages Of BrandExtensions Clarify brand meaning

Brand OriginalProduct

ExtensionProducts

New BrandMeaning

WeightWatchers

Fitness Centre Low-caloriefoods

Weight loss &maintenance

Sunkist Oranges Vitamins, juices Good health

Kelloggs Cereal Nutri-grainbars, Special K

bars

Healthsnacking

Aunt Jemima Pancake mixes Syrups, frozenwaffles

Breakfast foods


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Advantages Of BrandExtensions Increase the probability of gaining

distribution and trial

Increase efficiency of promotional

expenditures Reduce costs of introductory & follow-up

marketing programs (save 40-80%)

E.g. Apple iPods Avoid costs of developing a new brand

Allow for packaging & labelingefficiencies


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Advantages Of BrandExtensions

Enhance the parent brand image

Bring new customers into brand

franchise and increase marketcoverage

Revitalize the brand

Permit subsequent extensions


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Disadvantages Of BrandExtensions

Can fail & hurt parent brand image Xerox Computers-synonymous with

copiers & no one believed they couldmake computers

Can succeed but cannibalize sales ofparent brand

Amul Butter-reduced salt butter

is slowly eating up Amul normal butter


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Disadvantages Of BrandExtensions Can succeed but diminish

identification with any one category

Can succeed but hurt the image of

parent brand


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Disadvantages Of BrandExtensions

Can confuse or frustrateconsumers

Can encounter retailer resistance

Can dilute brand meaning

Can cause the company to forgo

the chance to develop a newbrand


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When are Brand ExtensionsAppropriate? When Prior Brand equity exists

Consumer must see someconnection between the proposed

extension and the parent brand. The proposed extension contributes to

and reinforces the overall brand equity

of the parent brand.


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Conditions For EvaluatingConsumers Brand Extension

Consumers have some awareness &positive associations about the parentbrand

At least some of these positiveassociations will be evoked by thebrand extension

Negative association are nottransferred from the parent brand

Negative associations are not createdby the brand extension

E l i B d E i


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Evaluating Brand ExtensionOpportunities

Define actual & desired consumer knowledge

Identify possible extension candidates

Evaluate potential of the extension candidate

Evaluate potential candidate feedback effects

Consider possible competitive advantages & reactions

Design marketing campaign

Evaluate extension success & effects on parent brand

equity


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Brand Extension Mite 100527001930 Phpapp02

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