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 Parachute Parachute Parachute Parachute

Coconut Hair Oil Shampoo Cream Cooking
Expertise Oil*

*hypothetical
 Types of Brand Extensions

Distinctive Taste, Ingredient or Component

Cartier Cartier Cartier Cartier

Jewellery Watches Purses 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??