BRAND EXTENSIONS

BRAND EXTENSIONS

Using an existing brand name to promote a product in a different category, is Brand Extension.

EXAMPLE Ponds - Cold cream, Toilet soap Shampoo,

Tooth paste, Moisturizing lotion, Talc & Face wash.

LG – Television, Refrigerators, Computer monitors, Microwaves, Air Conditioners, Washing Machines & Mobile phones.

Park Avenue – Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap & Razor.

WHY BRAND EXTENSION?

Cost of New launches Promotional Efficiency Consumer Benefits Feedback effects Returns

TYPES OF EXTENSIONS

Product form extension – A product launched in a different form usually means line extension, but if a different product form constitutes an entirely different product category.

Example: Amul milk Amul

Condensed milk Real Juices Real Juice

Concentrate

TYPES OF EXTENSIONS

• Companion Product – The idea here is to capitalize 0n product complementarily. The consumer may view both the products jointly.

• Example :

Colgate Dental Cream

Colgate Tooth Brush

Gillette Razors

Gillette Shave forms

Gillette After Shave

CUSTOMER FRANCHISE

• A marketer may extend a product range in order to meet the needs of a specific customer group.

J & JBaby Talc

J & JBaby

Oil

J & JBaby Cream

J & JBaby

Shampoo

J & JBaby

Diapers

COMPANY EXPERTISE

• Brand Extensions often come in the forms of different product category introductions using a common name but emanating from a common expertise pool. This strategy is particularly seen in Japanese companies.

Honda Cars

Honda Lawn

movers

Honda scooters

BRAND DISTINCTION

• Many brands achieve distinction in the form of a unique attribute, benefit or feature which gets uniquely associated with the brand.

• For instance, Parachute may have expertise of ‘coconut nourishment’ in customers’ minds over time. This would give Marico Industries, the brand owner, the opportunity to launch a variety of products exploiting this distinction.

PARACHUTE

HairOil

Shampoo Cream Cooking Oil

Baby Soap

Baby Oil

BRAND IMAGE OR PRESTIGE

• A brand extension may involve a foray into unrelated product categories based on a brand’s exclusive image or prestige value.

Steel, Automobile, Heavy Vehicles, Watches, S/W devpt. Training etc.,

DISTINCTIVE TASTE, INGREDIENT OR COMPONENT

• A brand may develop equity based on any and / or combination of taste, ingredient or component. Then the marketers can make entries into unrelated product categories capitalizing on these properties.

NescafeCoffee

NescafeChocolate

NescafeBiscuits

NescafeMilk

Supplement

NescafeCold

Coffee

BRAND EXTENDIBILITY

Extensions involve transfer of associations from the parent brand to the extension.

The brand extendibility depends on its character.

The brands can be classified into 5 types through extendibility.

FIVE FORMS OF BRANDS

FORM 1-The Product Brand It is a situation where there is very little

difference between the brand and the product.

The brand is used as an identity of the product.

Example : vicks

FORM 2 – FORMULA BRAND

Formula means a set procedure

A brand which comes in the formula category simply implies that a standard procedure has been used to make the product.

Example : cooking oil, pickles etc.,

FORM 3 – KNOW – HOW BRAND

Know – how is an expertise that a firm develops in a specialized area of activity.

Example : nokia is known for user friendly.

Amul has developed its brand as an expertise in milk processing.

FORM 4 – INTEREST BRAND

A brand may be defined by its centre of interest. It may reflect its core spirit.

Example – Gillette maintains its focus on men’s grooming in all its brands.

Logo is ‘the best a man can get’ which creates the interest among the target audience.

Whirlpool – home maker Nike – winning – to be on the cutting edge.

FORM 5 - PHILOSOPHY

The brand at this level acquires more intangible character and orientation.

The philosophy transforms its products in a realm altogether different from its physical reality.

Example : Parker pen, De beers diamond

FORMS OF BRAND EXTENDIBILITY

Product Brand

Pillsbury Atta

Formula Brands

Mother’s Recipes

Pickles lime, mango, mixed

Know –how

brand

Bajaj

Irons, Fans, coolers,

mixers etc.,

InterestBrand

Disney

Toys, Theatre,

Theme park, movies, etc

PhilosophyBrand

Cartier

Watches, jewellery,

Bags, pens

EXTENSIONS………………. Extensions are not simple as they appear to

a layman. Consumers reject extensions when they do

not make sense. Brand extension is not a physical act of

merging two products. It is a tough process involving marrying two

cognitive or perceptual concepts in order to create a consistent entity.

Therefore, it must begin with exploring the brand in a prospect’s mind.

EXPLORING THE BRAND INVOLVES SEEKING ANSWERS TO THE FOLLOWING QUESTIONS…….

What is a brand’s awareness level? What are its recall and recognition levels? What are different attributes associated with

a brand? What benefit associations are connected with

a brand? What are a brand’s personality associations? What are the symbols associated with the

brand? What are a brand’s user associations? What is the perceived essence of the brand? What is a brand’s philosophy?

STRENGTH OF ASSOCIATIONS - PONDS

PONDS

Talc Feminine FloralBody care

Cream

-Body Talc-Talc for Special occasions

Nail enamels

Lip coloursetc

Room Freshner,

soaps,Fragrance, shampoo,

etc

Body lotion,

Body oil, creams

Beauty cream,Conditioning

cream,cleansing cream, etc

MAKING AN EXTENSION SUCCESSFUL Aaker & Keller proposed certain assumptions

about consumer behaviour which are fundamentally responsible for the success of a brand extension.

The parent brand enjoys positive beliefs and favourable attitude in customers memory.

It is these pre-existing beliefs and attitudes which help in the formation of positive beliefs and favourable attitude toward the brand extension.

The negative associations are not transferred to the brand extensions, also these are not created by the brand extension.

Thank You