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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