BRAND EXTENSION

Presented By Prakashgouda Abhishek pandey

Road Map
Brand Extension Types of Brand Extension Needs of Brand Extension Advantages Disadvantages

Introduction
BRAND Brand is a name, term, sign, symbol, design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

A BRAND is symbolic embodiment of all the information connected to a Company, Product or Service.

Brand Extension
A Brand Extension occurs when a firm uses an established brand name to introduce a new product. When a new brand is combined with an existing brand, the brand extension can also be called a sub-brand. An existing brand that gives birth to a brand extension is the parent brand. If the parent brand is already associated with multiple products through brand extensions, then it may also be called a family brand.

Types of Brand Extensions

Brand Distinction

Parachute Coconut Expertise

Parachute Hair Oil

Parachute Shampoo

Parachute Cream

Parachute Cooking Oil*

*hypothetical

Types of Brand Extensions

Distinctive Taste, Ingredient or Component

Cartier Jewellery

Cartier Watches

Cartier Purses

Cartier Pens

Advantages Of Brand Extensions

Facilitate New Product Acceptance
Improve brand image Reduce risk perceived by Customers Permit consume variety-seeking

Advantages Of Brand Extensions

Increase the probability of gaining distribution and trial Increase efficiency of promotional expenditures Reduce costs of introductory & follow-up marketing programs (save 40-80%) E.g. Apple iPods Avoid costs of developing a new brand Allow for packaging & labeling efficiencies

Advantages Of Brand Extensions

Provide Feedback Benefits to the Parent Brand and Company
Clarify brand meaning Enhance the parent brand image Bring new customers into brand franchise and increase market coverage Revitalize the brand Permit subsequent extensions

Disadvantages Of Brand Extensions

Can confuse or frustrate consumers Can encounter retailer resistance Can fail & hurt parent brand image
Xerox Computers-synonymous with copiers & no one believed they could make computers

Can succeed but cannibalize sales of parent brand

Amul Butter-reduced salt butter is slowly eating up Amul normal butter

Disadvantages Of Brand Extensions

Can succeed but diminish identification with any one category Can succeed but hurt the image of parent brand Can dilute brand meaning Can cause the company to forgo the chance to develop a new brand

Brand Extension

Extension or stretching is marketing strategy in which a firm, marketing its brand with well-developed image, uses the same brand name in a expanding it scope of activities.

Examples of Brand Extension

In 1970, Rickard Branson founded Virgin as a mail order record retailer, and not long after he opened a record shop in Oxford Street, London.

Brand Existing

Category

Association

New Category

Extending a brand to create new sources of revenue

Extending a brand to create a strong affiliation with customers

Brand Hierarchy
A means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firms products, revealing the explicit ordering of brand elements A useful means of graphically portraying a firms branding strategy

Kapferers branding system

Product brand - exclusive name to single product (Tide, Dash, Ariel) Line brand - same concept across different products (VW) Range brands - one name on group of products having same ability (Green Giant) Umbrella brand - supports products in different markets (Canon cameras, copiers, office equip Source brand - products directly named (Park Avenue) Endorsing brand - wide diversity of products under product, line brands or range brands (GM)

Building Brand Equity at Different Hierarchical Level

Any Question??