Brand Extensionnew.ppt
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Transcript of Brand Extensionnew.ppt
Brand Extension
• MEHREEN SALEEM• SHAKEEL SAFDAR ALI• SANAM IFTIKHAR• HAMMAD MUZZAFAR• FATIMA HASSAN• RIDA SAMEEN• KHURRAM MAJID• FAHAD HUSSAIN
Brand ExtensionsOne of the most controversial areas of product concepts is the brand extension. A new product gets to share the name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout from the established product, but these fears proved groundless.Today brand extensions occur not only within the company, but companies are licensing their brand names to all kinds of products in the hope of increasing brand awareness.
What is Brand Extension ?
A A BRAND EXTENSION is the BRAND EXTENSION is the use of successful brand use of successful brand name to launch new or name to launch new or
modified products in new modified products in new categories.categories.
BRAND EXTENSION
THERE ARE TWO KEY SCHOOLS OF THOUGHTS:
1. CLASSICAL CONCEPT OF BRANDING
2. MODERN CONCEPT OF BRANDING
Classical Concept Of Classical Concept Of BrandingBranding
1 Brand = 1 Product = 1 Promise
P & G have 4 brands of Shampoos Catering for separate promises and target markets.
Modern Concept Of Branding
Extend Brand into various other categories.
Remote & Close Extensions
• Close: when extension is close to the core value
• Remote: when extension is close to the core value
Naming a brand
• If close to the core, Should NOT receive a new brand name
• When remote, Should BE helped by a specific or sub brand name
Considerations for Brand Extensions
Factors to consider before extending a brand:
1. FIT :Take the Brand vision, picture,
association & positioning into consideration. These pose a great impact on the Brand Extension.
2. Adding Value A brand should involve innovations and new ideas
in extensions. This assists the brand associations that will be valued by the customers. PHILLIPS
‘Lets make
Things Better’
3. Enhancing Brand Equity Through Associations
The Equity Should Enhanced by the Brand`s Presence In another context, by increased visibility & Brand Associations.
*Child Care:Baby Food, Dairy Products, Breakfast
*Cooking :Prepared Foods
*Wellness:Bottled Water, chocolates, Ice-cream
* Pet Care: Pet Food
Why Extend the Brands?
• To be in tune with the developments in user habits and practices
• Cost of Advertising• Defending a brand at risk in a Basic
Market• Access to Accumulated Image Capital,
Brand Survival, avoid obsolescence• Reinforcement of the Image Capital
Influence of Extension on the Brand and its Capital
• some extensions take advantage • some destroy the capital• some have a neutral effect• some influence the meaning of the brand
e.g. Tefal modernized itself by going into technology
• some regenerate, revive the brand and re-express its base values in a new and stronger manner
• some are just there to defend the brand
Stress on the brand through extensions
1.Type of the brand and ability to extend
A B C D E
Values
Interest
Know How
Formula
Product
Degree of Dissimilarity
Type of Brand
Stress on the brand through extensions
2.Under and over exploitation of a brand capital
A B E
Values
Interest
Know How
Formula
Product
Degree of Dissimilarity
Type of Brand
Y
X
LineExtension
Line
Extension
Spontaneous Associations
Latent Potential
Threat Of Brand`s Capital Assets
Perimeters OF Brand Extensions
Stress on the brand through extensions
All purpose cream, round blue
Nivea
Nivea showergelDeodorant
Shampoo
N’Soft
N’Sun
N’ Beaute
N’Baby
N’Vital
3.Perimeters of the brand extension using Nivea’s example
Few Classical errors
• Restricted vision of the Brand e.g. H&S• Keeping the Brand Locked up e.g. Nivea
went beyond the blue circle casing• When the Past determines the future
e.g. New Lifebuoy • Harmful extensions e.g. Lipton’s failure
in Soups affected the brand name• Opportunism and identity
incoherence e.g. teen magazine prints articles for working females
•Prototypical brands e.g. Coca Cola enjoys excellent reputation but will not use this capital for new products for the fear of losing its legitimacy
•Trap of Mundane Products: No qualitative difference e.g. Lux goes into pencils!
•Case of Luxury goods: Licenses and accessories, e.g. Channel T-shirt being worn by people with non-Channel look!
•Complementary is not guarantee, e.g. Campbell failed miserably in spaghetti sauces
Brand Relationship Spectrum
The Brand relationship spectrum indicates the degree of Brand
Extension by various companies
• House Of Brands• Endorsed Brands• Sub-Brands• Co-Brands• Branded House
House Of BrandsNo link shown to corporate or parent brand
1. A brand that can stand on its own2. Different persona, markets, values
P&G believes in the classic concept of branding i.e.
1 brand = 1 product = 1 promisePRINGLES
House Of Brands
LEXUS
• Branded House* No brands, Company is the only Brand* All the products are referenced by the company name
• BMW Diversifies into:AutomobilesMotorcyclesGas-TurbinesLeather accessoriesEquipment
(ALL WITH JUST ONE BRAND NAME)
BMW
Branded House KHAADI
The Brand name has become so strong that it is
crossing International Boundaries…
Branded HouseVOLKS WAGON
Branded HouseVolks Wagon Diversities:1. Automobiles2. Shirts3. Caps4. Jackets5. Gear6. Kids stuff7. Trek stuff
Endorsed Brands Brand is stronger than the endorser,
but the link remains. * Customer Acknowledges the brand
irrespective of the endorser
Endorsed Brands Why Endorsed Branding?
1. Flexibility in repositioning2. Adverse effect of corporate name
Sub-BrandsEndorser is much stronger and drives and dominates the sub-
brand UBL :
Sub - Brands
TAPALDANEDAR & FAMILY
MIXTURE
•When Two independent brands are sold together to reach new territories,
•Generate more value for the customer and hence reap maximum profits.•Brand is to give convenience•Both the endorser and endorsee are equally strong
Co - Brands
Co - Brands
CITI BANK: 1. CITI VISA
2. CITI MASTERCARD
Co - Brands
Gillette :Gillette SensorExcelGillette Mach 3
CO-BRANDS
THANKYOU