This material has been created & developed by Shankar Balan, Independent Management Consulting Professional. Material is under copyright but can be referenced.

1. This material has been created & developed by Shankar Balan – Independent Management Consulting Professional, as a part of curriculum for Academic Sessions conducted for final year Management Students at the Bharathidasan Institute of Management Campus, Bangalore. © edu-ideas@shankar.balan™ 2008 Copyrighted Material. November 15 th 2008

3. Part I Brand Extensions © edu-ideas@shankar.balan™ 2008

4. The fascinating World of Brands… © edu-ideas@shankar.balan™ 2008

15. Some Successful extensions Ralph Lauren © edu-ideas@shankar.balan™ 2008

17. Other Successful extensions Virgin group Records Airlines Railways Radio Music Mobiles Retail © edu-ideas@shankar.balan™ 2008

18. Brand Extension End-to-end example 1 © edu-ideas@shankar.balan™ 2008

19. Brand Extension End-to-end example 2 © edu-ideas@shankar.balan™ 2008

24. The Brand KEY - New category fit with mother brand’s values © edu-ideas@shankar.balan™ 2008

34. Part II Brand Licensing © edu-ideas@shankar.balan™ 2008

40. Products Different Similar Distribution Similar Different Game Plan Own Mfg Sourcing Licensing © edu-ideas@shankar.balan™ 2008

41. Products Different Similar Distribution Similar Different Progress of Game Plan Licensing Route © edu-ideas@shankar.balan™ 2008

42. SCORPIO Extension : Possible Road Map Products Different Similar Distribution Similar Different Jeeps Tractors Farm Equipment Alloy Wheels In Car Entertainment Others Clothing Sunglasses Watches Shoes Caps SUV’s & Lifestyle Vehicles Fog Lamps Toys © edu-ideas@shankar.balan™ 2008

43. Another way to look at Brand/ Product Extensions is to analyze their relevance based on 2 Key Tenets; i.e., Brand Accelerators & Key Value Drivers. “ Brand Image Accelerators ” and “ Key Value Drivers ” ….. © edu-ideas@shankar.balan™ 2008

44. SCORPIO Extension : Possible Road Map Key Value Drivers Low High Brand Accelerators High Low Jeeps Tractors Farm Equipment Alloy Wheels In Car Entertainment Others Clothing Sunglasses Watches Shoes Caps SUV’s & Lifestyle Vehicles Fog Lamps Toys © edu-ideas@shankar.balan™ 2008

53. Guidelines to establish better connect with consumer Guideline One: Extend a strong Attribute / Performance Characteristic Association. Example – Amul (milk association) Example – Fair & Lovely (skin fairness benefit association) Guideline Two: Extend an association with a Consumer Attitude or Belief. An intangible like this can actually be a very strong basis for extending a brand. Example – Nike (pushing oneself beyond the limit and an individualistic attitude) Guideline Three: Extend the brand based on Brand Essence. The essence of the Ferrari brand is the thrill and excitement associated with fast cars and winning races. The essence of the Dunhill brand is old-world, refined, sophisticated luxury. © edu-ideas@shankar.balan™ 2008

54. Customer’s Perception of mother brand PREMIUM MASS NICHE AFFORDABLE © edu-ideas@shankar.balan™ 2008

55. New Categories Relationship with Mother Brand Categories Directly related to the brand Complementary Categories Categories Un-related to the brand © edu-ideas@shankar.balan™ 2008

56. New category fit with mother brand’s values © edu-ideas@shankar.balan™ 2008

57. Architecture for marketing & distribution positioning Price Extension category Premium Basic Limited edition Mass distribution Limited distribution Selective showcase Premium © edu-ideas@shankar.balan™ 2008