Leroy J. Ebert DipM MCIM, Chartered Marketer, MSLIM

Manager Marketing and Business Development – Logiwiz Ltd.

Presentation Developed as Course Material for the SLIM Diploma in Brand Management

When a firm uses an established brand name to introduce a new product

Sub brand Parent Brand Family Brand

Line Extension – Marketers may apply the parent brand to a new product that targets a new market segment within a product category the parent brand currently serves. A line extension often adds a flavor, ingredient variety, different size or different application

Modifier brands

Category Extension: Marketers apply the parent brand to enter a different product category from the one it currently serves

Same product in different forms – Ex. AXE spray & Deo Roll on

Companion Products – Ever ready batteries and torches of Signal toothpaste and brushes or adidas shoes and apparels

Same customer franchise – Ceylinco Life and Ceylinco VIP, Laugfs Service station and Fuel station, HSBC credit cards and Lifestyle loans

Expertise Brands – ex. Sony TV, to Hi Fi’s, to DVD players. I’m sure that you will think twice In buying a Sony Car??????

Unique benefits – extend brands to offer more benefits and

convenience ex. VIM dish wash liquid, soap, powder Or Panadol syrup instead of tablets

Distinctive taste, ingredient, of component – extend based of a functional aspect ex. Herbal tooth paste, Diet cola etc.

Awareness – High awareness due to strength of original brand

Brand association – Sony is associated with quality and innovative electronic equipment

Quality association – adidas footwear to apparel Encourage quicker distribution and trial purpose –Vim powder

has worked so I shall try the liquid Reduce perceived risk Increase efficiency of promotional expenditure Avoid cost of developing a new brand Lower production costs – Raw materials, packaging etc Enhance the parent brands image Revitalize the brand Bring in new customers and increase market share

No value added – If the core brand is not strong then the extension might not succeed

Negative association – Remember the example of the Sony car

Name confusion – Ex. Ceylinco, can you name all the companies that had Ceylinco in it?

Possible cannibalization – Vim liquid eating into the vim soap market

Retailers resistance – lack of shelf space Can fail and hurt the parent brand Can succeed but diminish identification with any one

category Can prevent a company from introducing a new brand : i.e.

Levis & Dockers, Disney & Touchstone films

Brand extensions inevitably must add equity to the parent brand

How Salient parent brands associations are in the mind of the consumer in the extension context

How Favorable any inferred associations are in the extension context

How unique and inferred associations are in the extension category, how are these associations compared to that of competition

Brands are extended up into more premium market segments or down into more value conscious consumer segments

The logic is that the equity of the parent brand can be transferred in either direction to appeal to consumers who otherwise would not consider the parent brand

Upward extension can improve brand image Vertical brand extension can confuse existing consumers as a

result have existing and potential customers reject the parent brand

Extending brand across multiple product categories

Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (25th April 2014)