Features of brand extension in a competitive situation .
There are some essential features of brand extension in a competitive situation and is comprised of two crucial strategic decisions,Against which competitive brand to position the new product.
The selection of product attributes or benefits that provide a differential advantage for the product compared to the competitive offerings and to attain consumers mind share.
This emphasizes three key factors in the implementation of the brand extension study namely, the competitive brand in the extension category,
the attributes of the extension brand and the ‘perceived fit’ between the brand and the extension.
A high fit usually spells success like in the case of Colgate toothpaste extending into the toothbrush segment under the general attribute of dental care.
On the other hand a low fit would spell otherwise, like the case of the owners of Pan-Parag in India coming up with their range of pens under a new name Rotomac,
as they feared the name Pan-Parag would not go down well with the users as the name of a pen.
Taking cue from the research paper of Franziska Volckner and Henrik Sattler the acceptance or failure to acceptance of the theory is based on the following factors
1. Characteristics of the parent brand (brand strength, uniqueness of knowledge structure, history of previous brand extensions)
2. Experience with the parent brand.
3. Characteristics of the extension product (experience vs search goods, uniqueness)
4. Relationship between parent brand and extension product (fit between parent brand and extension
product, Kind of information which is extended by the parent brand).
5. Characteristics of the firm (size, marketing competence)
There are some essential features of brand extension in a competitive situation and is comprised of two crucial strategic decisions,Against which competitive brand to position the new product.
The selection of product attributes or benefits that provide a differential advantage for the product compared to the competitive offerings and to attain consumers mind share.
This emphasizes three key factors in the implementation of the brand extension study namely, the competitive brand in the extension category,
the attributes of the extension brand and the ‘perceived fit’ between the brand and the extension.
A high fit usually spells success like in the case of Colgate toothpaste extending into the toothbrush segment under the general attribute of dental care.
On the other hand a low fit would spell otherwise, like the case of the owners of Pan-Parag in India coming up with their range of pens under a new name Rotomac,
as they feared the name Pan-Parag would not go down well with the users as the name of a pen.
Taking cue from the research paper of Franziska Volckner and Henrik Sattler the acceptance or failure to acceptance of the theory is based on the following factors
1. Characteristics of the parent brand (brand strength, uniqueness of knowledge structure, history of previous brand extensions)
2. Experience with the parent brand.
3. Characteristics of the extension product (experience vs search goods, uniqueness)
4. Relationship between parent brand and extension product (fit between parent brand and extension
product, Kind of information which is extended by the parent brand).
5. Characteristics of the firm (size, marketing competence)