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Brand Extension -When a firm uses an established brand name to introduce a new product.

Sub Brand Parent brand Family brand -Brand Extension can be categorized as: Line Extension: Different flavors, sizes, forms, application etc Category Extension: enter different product category from the parent brand.

Seven strategies for establishing a category 1. 2. 3. 4. Introduce the same product in different forms: Mortein Introduce products that contains different components, ingredients: Dairy milk- different flavors Introduce complementary products: Duracell Introduce relevant products: Fishing rod then gumboots Introduce products featuring the expertise of the company: Car segment Introduce products that reflect the brands distinctive benefits, attributes: Dove milky products Introduce product that capitalize the distinctive image or prestige of the brand: Harley Davidson

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Improves and clarify Brand Image and meaning Reduce risk for the customer Gain on distribution Channel Reduces promotional expenditure Reduce cost of introductory and follow up marketing program Use of existing infrastructure or minimum increase Revitalizes the brand Adds new customers


Identify logical new product possibilities. Capitalize on the paid-for equity in established brand names. Enable a company to enter new categories at significantly lower cost. Reduce the risk of failure given the already established awareness and trust. Create a positive synergistic effect with the efficiencies of umbrella branding and advertising. Reinforce the consumers perceptions of the parent brand name. Bring news to existing brands when there is otherwise nothing new to say about them.


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Can Confuse or frustrate customers Can encounter retailer Resistance If failed can hamper parent brand image Cannibalize Dilute brand meaning Limits Scope

10 Principles of Brand Extensions 1.Brands should not be extended unless they are wellknown, have high awareness and a good reputation among the new target market. 2.Brand extensions must be a logical fit with consumers expectations. 3.Brand extensions must have leverage in the new category a transfer to the new product of a distinctive property associated with the parent brand that gives the brand extension an edge in the new category. The test: Just knowing the brand name, customers of the new category should be able to identify a reason why they might prefer the new brand extension to existing competition. 4.Brand extensions that could create confusion or a negative image for the parent should not be undertaken.

5.Brands that consumers use synonymously with a category (generic) should not be extended to other categories. 6.Brands should not be stretched to too many diverse categories risking dilution in the long run. (There are cases, however, where a brand dominates a modest sized category and has no room to grow. In these instances, the upside potential of extending is worth the risk of dilution e.g., Arm & Hammer.)

7.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.)

8.Brand extensions must make business sense.

9.Every brand extension should open a category for the firm. The whole point of brand extension is to efficiently and successfully enter a new category.

10.A critical part of every brand extension research study is developing a brand plan. Short and long term possibilities should be identified up-front.

Branding Model BRAND Brand Relationship = Brand Image + Attitude Brand Image = Brand Associations + Brand Personality Brand Associations = Link up in memory with brands attributes, benefits and looks Brand Looks = Brand Symbol + Brand Name

Brand Symbol = Brand Character + Brand Logo PRODUCT

Brand Name A Brand Name summarizes various relevant and irrelevant aspects as well as copy, audio and visual aspects of a product, which a human being can sense. It provides an identity beyond doubt. And identity differentiates. Since branding is a concept that exists to create identifiable differentiation, the brand name becomes a key marketing tool. For example Any brand name is a source of value to the company. It carries symbolic meaning at times, for the customer and anyone it interacts with. A Bennetton T-Shirt without the brand name/ brand slogan printed on it would be a mere commodity.

Q1. Develop a brand name, logo and symbol, slogan, packageand, if appropriate, character for a new product. Discuss how the elements would change if the target market changed. Candidates might include a mens fragrance, a laundry detergent, a battery-free windup flashlight, and a sparkling fruit drink. Q2. Pick two brands from the same product category and compare their brand elements in terms of their memorability, protectability, adaptability, meaningfulness, and transferability. Mc Donalds vs Wimpys burger, Aquafina vs. Bisleri water, Apollo vs. Goodyear tires, beer could be used.