brand extension Oct 13.pptx

8/10/2019 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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brand extension Oct 13.pptx

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