Brand Extensions

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Brand ExtensionPresented by:Sana Haq Sana Iqbal Waqas Ahmad Raheem Tejani Nadia Azher Khan Mohd. Salman Jamil

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 ?Lets here what brand managers say about it !!!!

Tazeen Kaazi Asst. Brand Mgr Energile and Rafhan Best Foods

Amir Habib Brand Manager Tapal

Faizan Jamal Asst. Marketing Manager UBL

Brand ExtensionsBrand positioning as the key to Brand Extension Extending your Target Market: Gillettes Sensor for women Extending the Definition of your Business: IBM Consulting, Technology Technology Based Solutions Extending your Point of Difference: Haleebs thick milk, now in plastic bottles Extending the Entire Positioning: Caterpillars venture into Footwear

Brand ExtensionsKey Brand Extension Questions Consistency with Brand Vision? Uphold and strengthen Brand Picture? Consistency with overall Positioning? Extension failure may cause major or minor setback for the parent brand?

Brand ExtensionsHow to pick the Right Brand Extensions: A 4 Step Process Step 1: Develop the Brand Extension Strategy Step 2: Explore the Problem and Opportunity Areas Step 3: Generate Brand Based New Product Ideas Step 4: Develop Brand-Based Concepts and conduct Business Analysis

Brand ExtensionsWhy Extend the Brand? 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

Brand ExtensionsEvaluation of Extension Perceived typicality of the extension Perceived fit with the brand Credibility of the brand extension Perceived added value of the extension

Brand ExtensionsInfluence of Extension on the Brand and its Capitalsome 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

Brand ExtensionsStress on the brand through extensions1.Type of the brand and ability to extendType of Brand Values

Interest

Know How

Formula Degree of Dissimilarity A B C D E

Product

Brand ExtensionsStress on the brand through extensions2.Under and over exploitation of a brand capitalType of Brand Y Values

Interest

Know How X Formula Degree of Dissimilarity A B E

Product

Brand ExtensionsStress on the brand through extensions3.Perimeters of the brand extension using Niveas exampleN Beaute

Nivea N Baby N Soft All purpose cream, round blue N Sun

N Vital

Nivea showergel DeodorantShampoo

Brand ExtensionsRemote & 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

Brand ExtensionsFew 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. Liptons 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. Chanel T-shirt being worn by people with non-Chanel look! Complementary is not guarantee, e.g. Campbell failed miserably in spaghetti sauces

Brand Relationship SpectrumBranded House No brands, Company is the only Brand All the products are referenced by the company name E.g. Khaadi

Branded House - KHAADI

Khaadi As A Branded House

Imran Khan Marketing Manager Khaadi

Khaadi moving towards Sub Branding

The Brand name has become so strong that it is crossing International Boundaries

Dettol Branded HouseSaira Munir Asst. Brand Manager Dettol

Dettol was able to line extend because Used NPDs to discover new ideas Extension to the soap category was easy The core USP remained the same antibacterial High equity value of dettol

Moving from Harsh antibacterial Moisturizing

Maintaining core USP but adding a feature

Introducing Sensitive

Focus on skin care more than germicidal To capture changing market needs

Perhaps Confused Positioning

Ponds- Branded House

Sabeen Fazle Brand Manager Ponds

Ponds Brand Extension Started off with creams The evolution of skin care market gave them an opportunity to stretch into: Talcum powder Lotion Face wash Black head remover strips All in line with USP- skin care

Fair and Lovely could not so easily extend the brand

Extensions Lotion greatest potential with 15-20% growth Face wash 40% penetration Talcum Powder- high growth because of climate Black head removing strips

Ponds fair and young Sub brand?

A whole new category of age management and fairness gave rise to the need of a proper brand name

Brand Relationship SpectrumSub-Branding

Endorser is much stronger and drives and dominates the sub-brand

Faizan Jamal Asst. Marketing Manger UBL

Why UBL has extended Brand Equity has FOUR pillars Awareness Perceived Quality Differentiation Loyalty

Sub Branding was easy because of High brand awareness UBL Wallet, Drive, Address, Cashline Future- endorsed brand

Advantage of House of Brands

Brand gets multiple engines to build its profitability and value

Dettol Water Pure

Rania Brand Manager Veet & Dettol Water Pure

Why Extend Dettol? Under the Reckitt Benkiser Corporate name As a choice for a mass market product dettol was the best option for Reckitt Water purifier made the most sense in a Pakistani market

Dettol Water Pure Sub or Endorsed? P&G gained first mover advantagecategory became known as PURE People asked for TABLETS- DETTOL So whats the conclusion?...

Brand Relationship SpectrumEndorsed Branding

Brand is stronger than the Parent brand, but the link remains Customer Acknowledges the brand irrespective of the endorser

TAPAL

Danedar and Family mixture are SUB Chenak & Mezbaan are Endorsed

Why Endorsed Branding

Why Endorsed Branding E.g. on tobacco Indus Flexibility in repositioning Adverse effect of corporate name

Walls

Innovative and strong brand name BUT . . .

- Endorsed Brand

Mona Hussain Brand Manager Walls

NOW Sub-brandGive WALLS much more mileage 30% outdoors go to Walls Limited budget Drive the consumer to the WHOLE cabinet rather than a specific brand Easier to support range than a brand

Walls- Sub Brand

So in conclusion

Brand Relationship SpectrumHouse of Brands

No link to the parent brand

House of brands P&G believes in the classic concept of branding i.e. 1 brand = 1 product = 1 promise

Shadow brands

Amjad Ali Asst. Brand Manager Braun, Duracell, & Oral B Gillette Pakistan Ltd.

Why Shadow branding? A brand that can stand on its own Different persona, markets, values Gillette essence cannot fit into these individual brands

Sun Sip- Shadow Brand Hilal sweets launched into the powder drink category under the name Sunsip The 3 drinks being Limo Pani, Thunda Orange and lastly the Body Charger. Limo Pani was tremendously successful

Shadow branding; Very low awareness of Sunsip The later brands Thunda Orange and Body Charger very much relied on the image capital built by Limo Pani.

Brand Relationship SpectrumCo-Branding

When Two independent brands are sold together to reach new territories, Generate more value for the customer and hence reap maximum profits.

Co Branding

Tazeen Kaazi Asst. Brand Manager Energile and Rafhan Best Foods

Co Branding Brand is to give convenience One product satisfying more than one need Knorr- Fair & Lovely Same market- mother is the customer Co branding gives price discount which attracts consumer

Creativity in combining products LIPTON tea party

Brand ExtensionsLimitations Must realize the opportunity cost of the brand that was NOT created! Could have allowed better coverage Deeper penetration of the new, young and emergent markets Could have attained more growth

QUESTIONS ????