Description
Describes about what is brand extension, why brand extension is required, different types of brand extensions.
BRAND EXTENSIONS
Brand extension
? Using an existing brand name to promote a
product in a different category, is Brand Extension.
? The key difference between line and brand
extension is the product category. In line extension the product Category remains constant whereas in brand extensions product category is a variable.
Examples
? Ponds - Cold cream, Toilet soap Shampoo,
Tooth paste, Moisturizing lotion, Talc & Face wash. ? LG – Television, Refrigerators, Computer monitors, Microwaves, Air Conditioners, Washing Machines & Mobile phones. ? Park Avenue – Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap & Razor
Why Brand Extensions?
? Cost of New launches ? Promotional Efficiency ? Consumer Benefits ? Feedback effects ? Access to an accumulated image capital ? Returns ? Only way of defending a brand at risk
Typology of Brand Extensions
? Some take advantage of the brand capital ? Some destroy the brand capital ? Some have neutral effect on the brand capital ? Some influence the meaning of the brand ? Some are regenerating ? Some are necessary to defend the brand
capital
Stress on the brand through Extension
Type of Brand
Value Interest Know-how Formula Product
Degree of product (A) (B) (C) (D) (E) dissimilarity Type of brand and ability to extend
Examples (B) – Heinz (Ketch up, mustard sauce) ( C) – Palmolive (softens everything it embraces) (D) – Sony (E) – General Electric – nuclear reactors to toasters
Marketing Mix of Brand Extensions
? Foreseeing the risks of the brand ? Anticipating the risks for the extension ? What names for brand extensions? ? Reinstating the brand values ? Coherence of the marketing mix
Types of brand extensions – Product form extension
? A product launched in a different form usually means line
extension, but if a different product form constitutes an entirely different product category.
? Example: Amul milk and Amul Condensed milk ? Real Juices and Real Juice Concentrate
Types of brand extensions – Companion product extension
? The idea here is to capitalise 0n product
complementarity. The consumer may view both the products jointly.
? Example : Colgate Dental Cream ,Colgate Tooth Brush
Gillette Razors ,Gillette Shave forms, Gillette After Shave
Types of brand extensions – Customer franchise
? A marketer may extend a product range in order to meet
the needs of a specific customer group.
? J & J Baby Talc, J & J Baby Oil, J & J Baby Cream ,J & J
Baby Shampoo ,J & J Baby Diapers
Types of brand extensions – Company Expertise
? Brand Extensions often come in the forms of different
product category introductions using a common name but emanating from a common expertise pool.
? This strategy is particularly seen in Japanese companies.
Honda Cars, Honda Lawn movers, Honda scooters
Types of brand extensions – Brand Distinction
? Many brands achieve distinction in the form of a unique
attribute, benefit or feature which gets uniquely associated with the brand.
? For instance, Parachute may have expertise of ‘coconut
nourishment’ in customers’ minds over time. This would give Marico Industries, the brand owner, the opportunity to launch a variety of products exploiting this distinction. Parachute Hair Oil Shampoo Cream Cooking Oil Baby Soap Baby Oil
Types of brand extensions – Brand image or prestige
? A brand extension may involve a foray into unrelated
product categories based on a brand’s exclusive image or prestige value.
? Steel, Automobile, Heavy Vehicles, Watches, S/W
development. Training etc.
Types of brand extensions – Distinctive taste, ingredient or component
? A brand may develop equity based on any and / or
combination of taste, ingredient or component. Then the marketers can make entries into unrelated product categories capitalising on these properties.
? Nescafe Coffee, Nescafe Chocolate, Nescafe Biscuits,
Nescafe Milk Supplement, Nescafe Cold Coffee
doc_881534807.pptx
Describes about what is brand extension, why brand extension is required, different types of brand extensions.
BRAND EXTENSIONS
Brand extension
? Using an existing brand name to promote a
product in a different category, is Brand Extension.
? The key difference between line and brand
extension is the product category. In line extension the product Category remains constant whereas in brand extensions product category is a variable.
Examples
? Ponds - Cold cream, Toilet soap Shampoo,
Tooth paste, Moisturizing lotion, Talc & Face wash. ? LG – Television, Refrigerators, Computer monitors, Microwaves, Air Conditioners, Washing Machines & Mobile phones. ? Park Avenue – Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap & Razor
Why Brand Extensions?
? Cost of New launches ? Promotional Efficiency ? Consumer Benefits ? Feedback effects ? Access to an accumulated image capital ? Returns ? Only way of defending a brand at risk
Typology of Brand Extensions
? Some take advantage of the brand capital ? Some destroy the brand capital ? Some have neutral effect on the brand capital ? Some influence the meaning of the brand ? Some are regenerating ? Some are necessary to defend the brand
capital
Stress on the brand through Extension
Type of Brand
Value Interest Know-how Formula Product
Degree of product (A) (B) (C) (D) (E) dissimilarity Type of brand and ability to extend
Examples (B) – Heinz (Ketch up, mustard sauce) ( C) – Palmolive (softens everything it embraces) (D) – Sony (E) – General Electric – nuclear reactors to toasters
Marketing Mix of Brand Extensions
? Foreseeing the risks of the brand ? Anticipating the risks for the extension ? What names for brand extensions? ? Reinstating the brand values ? Coherence of the marketing mix
Types of brand extensions – Product form extension
? A product launched in a different form usually means line
extension, but if a different product form constitutes an entirely different product category.
? Example: Amul milk and Amul Condensed milk ? Real Juices and Real Juice Concentrate
Types of brand extensions – Companion product extension
? The idea here is to capitalise 0n product
complementarity. The consumer may view both the products jointly.
? Example : Colgate Dental Cream ,Colgate Tooth Brush
Gillette Razors ,Gillette Shave forms, Gillette After Shave
Types of brand extensions – Customer franchise
? A marketer may extend a product range in order to meet
the needs of a specific customer group.
? J & J Baby Talc, J & J Baby Oil, J & J Baby Cream ,J & J
Baby Shampoo ,J & J Baby Diapers
Types of brand extensions – Company Expertise
? Brand Extensions often come in the forms of different
product category introductions using a common name but emanating from a common expertise pool.
? This strategy is particularly seen in Japanese companies.
Honda Cars, Honda Lawn movers, Honda scooters
Types of brand extensions – Brand Distinction
? Many brands achieve distinction in the form of a unique
attribute, benefit or feature which gets uniquely associated with the brand.
? For instance, Parachute may have expertise of ‘coconut
nourishment’ in customers’ minds over time. This would give Marico Industries, the brand owner, the opportunity to launch a variety of products exploiting this distinction. Parachute Hair Oil Shampoo Cream Cooking Oil Baby Soap Baby Oil
Types of brand extensions – Brand image or prestige
? A brand extension may involve a foray into unrelated
product categories based on a brand’s exclusive image or prestige value.
? Steel, Automobile, Heavy Vehicles, Watches, S/W
development. Training etc.
Types of brand extensions – Distinctive taste, ingredient or component
? A brand may develop equity based on any and / or
combination of taste, ingredient or component. Then the marketers can make entries into unrelated product categories capitalising on these properties.
? Nescafe Coffee, Nescafe Chocolate, Nescafe Biscuits,
Nescafe Milk Supplement, Nescafe Cold Coffee
doc_881534807.pptx