brand extension oct 13.pptx
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BRAND EXTENSIONS
UNRELATED
RELATED
iMAGECATEGORY
Cinthol Shoes
Cinthol Talcum Powder
Cinthol Lime Fresh
Cinthol Cologne Fresh
Cinthol Spicy Fresh
Cinthol Sexy Fresh
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Multibrand
Strategy
Brand
Extension
Product Line
Extension
Brand
NameCategory
Different Different
Different Same
Same Same
Sizes Forms
Flavours
Fragrances
Spray
Liquid
Paste
PowderCake
Weight
VolumeULP
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Brand Extensions necessary
New brand launches: 1/10thsuccesss
(Extend to products that are in line with the Parent Brands promise)
MaggisTaste and Quality is its basic brand promise
And is in every Extended Product.
Hondas Engine Performance in all its extended products.
Old namecomfort zone
Established brands are used as quality cues
Brand Extensions benefit from spill-over of advtg from
Other products affiliated with the brand (Ex Dettol)
Energising a brand: Increasing visibility thro more variants
(Ponds Dreamflower Talc Ponds Magic)
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Expanding Core Promise to new users
No-tears Shampoo
Price Sensitive
Diff fragrances
Ex: Godrej Shaving Cream Shaving Cake
(Price Sensitive)
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Blocking /Inhibiting Competition
Surf Rin, Wheel, Det(to fight Nirma on the price front)
Ariel Ariel Super Soaker
Surf Easy Wash Surf Ultra
(Also, served as ENTRY BARRIER)
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Parent brands considered for extension must own some distinctive
properties(though not necessarily exclusive ones).
Ex: i) An ingredient: bata ____________ Shoes
ii) A benefit or Attribute: Maggi ------- Good Taste
iii) Expertise: Samsung ------------------- Superior technology
Brands that own nothing usually are not good candidates for brand
extension.
Being well known is not enough.
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Some reasonable segment of consumers in the new
category must want this property.
The critical factor in a brand's extension success is whether
the distinctive property owned by the brand is important in
the new category and provides a competitive edge.
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WHICH MAGGI WILL YOU CHOOSE?
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If good taste is not important in peoples selection
of a laptop, then Maggi Laptops Might be a failure.
If good taste is important in peoples selection of home made masalas
, then Maggi Masalas might be a success.
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Honda has a unique expertise in reliable motorized
products. A Honda lawn mower with a
offers distinctive benefits that flow from
the essence of the brands reputation.
claim of superior enginetechnology and reliability
All I want is a superiorand reliable mower
engine that is hassle free
Dont believe! Turn to nxt slide and see for yourself.
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All Honda Lawn Mowers!!
Maggi 2-Minute Brooms
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Note the issue is not just fit. Many mistakesare made in launching brand extensions
because the consumer will allow it.
Without leverage, a brand
extension is a weak idea.
So, Leverage ka kya matlab?
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Leverage: Distinctive
properties a brand
owns that provide a
competitive advantage
to the brand extension
in its new category.
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Dont understand what makes a brand
extension succeed
They extend brands just to savemoney that would be needed to
establish a new brand
It cost approx
5 times more to
establish a new brand
than to ride piggy back
On an existing and
established name.
A Manufacturer usually has
His Head In the wrong place!
They stretch a brand
to as many categoriesas possible to add
sales.
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Consumers may think, for example, the Maggi brand
would be fine on many food product categories. But if
that brand brings little strength other than
recognition and a general good feeling, it may have
little leverage.
Brands that consumers will allow to be on
a wide range of products have little
leverage (own nothing special).
Brand Extension Researchhave revealed
that there is often an inverse relationship
between fit and leverage.
In contrast, Amul stands for dairy products. This
limits its extendibility but it means that any brand
extension where milk is an important ingredient
(e.g., paneer) will find the Amul brand to be a
strong competitor.
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In other instances, companies want
to The starting point of searching
for successful brand extensions is
research that profiles theconsumers view of the boundaries
and leverage of the brand.
all successful extensions reston the same three pillarsfit,
leverage and opportunity
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Handbags
Shirts
Tomato Sauce
Mobiles
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("Crest toothpastes" and "Crestchewing gum").
("Crest tartar toothpaste" and
"Crest fluoride toothpastes)
Line Extn
Brand Extn
Variants
Forms Fragrances Flavours
Wooing same consumers of parent brand
Exploiting potential of brand within a product category.
using the same brandname to launch new
variants in the same
product category.
Using the same brand
name to launch new
variants in diff product
categories.
making the current
users use the
different variants
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Engine quality
Fuel economy
Durability
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Extend usage
different
flavors
provided each flavor is
positioned as a different
concept.
Breakfast drink
Lunch drink
sexy
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Before extending brand, it is best to deepen our PODs
(to create benefit of value association for the Ext Brand)
Volvo & Michelin (Safety and Peace of Mind)
Intel (Performance and Compatability)
Marlboro (Western Imagery)
Vodafone (Friendliness and helpful)
BMW (Styling & Driving Performance)
Bata (Affordable and Reliable)
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The quintessential Rich Tomato Ketchup and Rich
Tomato Sauce (No Onion No Garlic)
The unique Hot & Sweet Tomato Chilli Sauce
The tangy and chatkaaredar Imli Pichkoo
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DIFFERENTIATIONIDENTIFYING IN WHAT WAY
THE BRAND IS DIFFERENT
FROM OTHER COMPETITINGBRANDS.
PRICE
PLACE
PRODUCT
PEOPLE
PACKAGING
PHYSICAL EV
POE
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YE HAI
DIFFERENT
IATION YA
POSITION
ING
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VARIANTS
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BA1
BA8BA7
BA2
BA9 BA10
BA5BA4
BA14 BA15 BA16
BA6
BA12 BA11
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Ambassador Shoes to ..Shrtings)
Popular but staid.
(Affordable
(Shirtings require bigger premises)
Park Avenue ------------ Shirts .to Shoes
Mens Toiletries
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Colgate Toothpaste. Toothbrush
Competitors (Close Up, Ajanta)
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Dabur Ayurvedic.. Toothpaste
Maintained the Image Fit
Expert in traditional/herbal/ayurvedic stuff
Has a herbal connotation
+
+
Dabur vs Binaca
Herbal
connotation
Cosmetic
Connotation
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Dettol Anti-Septic Liquid
100 % Soap
(Niche of Ayurvedic Bar Soaps ------ small ; Tonnage low)
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Horlicks Beverage (HFD).
(Strong link with Beverage)
(Savage competitionStrong players like
Parle, Brittania)
+
Unorganised sector
(Strong link with taste & entertaining friends/rels)
BISCUITS
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Consumer must see
1. something good in the extension
2. Something common with its parent.
If Market share > than 60 %
Brand Extension in
Unrelated Category
Because the Extended Brand will be
Genetically identified with the parent category.
Even when the brand can be stretched only to those
Product categories that are very close to the parent.
Brand Extn in
Related Category
Category Related Extensions can bring in added
volumes despite cannabalisation.
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Risk is minimised from Consumers &
Manufacturers side
Cost of Extn involved much less than new brand
Extns can rarely expand Category Demand.
Retailers cannot provide more shelf space to a
Category just Because there are more variants.
Brand and Line Extns build up overall visibility for the brand.
Extended brand may cause damage to the Parent Brand,
if something goes wrong .
Brand Extensions may severely diffuse the image of the Parent Brand,
if over-stretched and over-used. Extreme care must be exercised
when extending the brand.
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When extending a brand, it is imp to first highlight
The POPs (so as to establish the brandsCategory membership
And then only later reinforce the PODs by
highlighting them in your ad campaign.
MOST IMP WHEN THE BRAND IS BEING EXTENDED
IN AN UNRELATED CATGORY.
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Brand extensions must be a
logical fit with consumers
expectations.
Brand extensions that could create
confusion or a negative image for
the parent should not be
undertaken.
Brands that consumers use
synonymously with a category(generic) should not be extended
to other categories.
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Brands should not be stretched to
too many diverse categories risking
dilution in the long run. (There are
cases, however, where a branddominates a modest sized category
and has no room to grow. In these
instances, the upside potential of
extending is worth the risk of
dilutione.g., Tata, Godrej, Virgin)
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Brand extensions that will not create positive synergy for the parent
brand should not be pursued. (Ask consumers whether their opinion of
the parent would be lowered if the new brand extension were available.)
Every brand extension should open a category for the firm. The wholepoint of brand extension is to efficiently and successfully enter a new
category.
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Orientation
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SEGMENTATION
POSITIONING
TARGETING
ORIENTATION
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Husband beater
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Heavy on wines
Behavioristic Overview
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GIVE A HAND TO WILDLIFE
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NO ONE GROWS KETCHUP LIKE HEINZ
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Here's an example objective - and the
resulting ad - when you want the
audience to think, to understand:
The objective of this ad is to get the audience to understand
and believe that Mr. Clean cleans the toughest stains
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Here's an example objective - and the resulting ad - when
you want the audience to feel an emotion or an experience:
The objective of this ad is for the audience to
feel the experience of wearing a Wonderbra.
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Here's an example objective - and the resulting ad - when you want
the audience to take action, to do something.
The objective of this ad is to get the audience to click and sign up
for Netflix with a free trial membership to get started.
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Objectives:
I. To enhance Content quality and make it more
management-specific
II. To hold workshops/seminars preferably free of cost or at
a very nominal fee (to defray expenses incurred) from
time to time for the benefit of our members
III. To participate in some social-service cause and mobilize
the active support and involvement of our members.IV. To raise the bar on academic standards through various
means and measures
V. To provide a platform for recruitment & training
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We have on board some very distinguished faculty from top institutes.
These are:
Prof Leslie Rebello (OB/HR) Dr B K Mukherjee (Strategic
Management) Prof Anita Shanbagh Dr Aparna Rao
(Entrepreneurship Development) Prof Daryll Gabral (HR) Prof
Sudarshan (Ex-Member, NMIMS, Academic Council, Public Relations)
Dr Vijay Singh Dahima(Dir, BCIDSunder EG odf SPJIMR)Servicesmarketing Prof Cajetan Dsouza(NMIMS faculty)Marketing Prof
Gavin Fernandes (Entrepreneurship Management) Prof Ajay Sharma
JBIMS faculty, Taxationa and Finance Prof Rajesh VyasSydenham,
SIMSREE, B2B Marketing, Consumer Behaviour Dr Nilesh Berad,Director, Ashok Institute of Management Studies, Nashik, Ex-Dir, MET,
Nashik Prof Boman Moradian * Sapna Modi ( Marketing)
And others.
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Key Deliverables:
I. To increase eyeball hits
II. To increase involvement and
participation of current members in the
Community
III. To attract more members (quality over
quantity though) into MBA Connect and
MBA Connect (Undergrad)
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Restrictions:
We are to employ only BTL activities like
Social Media Marketing
Posters at Strategic locationsWord of Mouth
You Tube
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Save gas Keep fit Reduce pollution Keep the economy going
Mera Bharat Aage
Walk to work
Walk to college
Walk to market
Walk to meet friends
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TheKeep-fit
Benefit.
WALK!Walk to college, walk to office,
walk to market, walk everywhere.
You also reduce traffic congestion, noise and air pollution , save gas and indirectly help the economy.
Mera Bharat Aage
Show your solidarity. Join MBA Connect at .
facebook.com/mba connect.5
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(Note: Your is in
the possessive, as in
its your
assignment.
Youre is theContraction for you
are as in Youre an
Ass**** if your
brain cannot
differentiate
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Marketing Demographics
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Marketing Students
(Alias Muppets)
60 %
Marketing Faculty
39 %
Marketing Faculty Who
Actually know Marketing
1 %
g g p
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Save gas Keep fit Reduce pollution Keep the economy going
Mera Bharat Aage
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