2. Some of them take a step forward ……..
Oprah Winfrey Talk Show
“O” Magazine
Apple Macintosh PCs
Apple iPod
& reinforce the Brand Equity.. All over again and again and again
3. While some of them don’t…
Harley Davidson Bikes
Harley Davidson Cake Decoration Kits
Hooters - A sleazy bar Hooters Airlines
4. How will you react ??????
MONGINIS …. Designer Wear
9. What is Brand Extension?
“Brand extension is using the leverage of a well
known brand name in one category to launch a
new product in a different category”
10. Brand Extension Components
• It is a new product
• Should be a well known brand
• The brand should have leverage with customers of the
new category
– A strong reason why the consumer in the new
category will prefer us to what they are buying now
11. Broad Classification
• Line Extension:
Extension of the parent brand to a new market
segment within the existing product category
Example:
Head & Shoulders Dry Scalp Shampoo
12. Broad Classification
• Brand Extension – Extension of the Parent Brand to a
new product category
Examples:
Porsche Bicycles
13. • Line Extensions:
The parent brand is used to brand a new product that targets a new
segment within a product category currently served by the parent
brand.
Examples:
Types of Brand Extensions
Sunsilk in different colors of shampooColgate in different ingredients
14. • Category Extensions:
The parent brand is used to enter a different product category from
that currently served by the parent brand.
Examples:
Types of Brand Extensions
Ponds (cold cream, talc, lotion, face wash)
Amul (butter, cheese, chocolates,
ice cream, condensed milk)
15. Types of Brand Extensions
1. Similar product in a different form from the parent product
Example: Dettol
The original Dettol liquid to Liquid Soap to a Regular soap all based on the same
promise of killing germs.
16. Types of Brand Extensions
2. Distinctive flavor/ingredient/component in the new item
Example: Amul
Amul Milk to Amul Butter, Amul Cheese, Amul Chocolates,etc all based on Amul
expertise in Milk.
Types of Brand Extensions
17. Types of Brand Extensions
3. Benefit/attribute/feature owned
Example: Rexona
Rexona soaps conveyed the benefit of freshness which was extended to cover
deodorants with a promise of 24x7 freshness.
Types of Brand Extensions
18. Types of Brand Extensions
4. Expertise
Over time, certain brands may gain a reputation for having an expertise in a
given area which can be leveraged in other areas.
Example: Kodak
Kodak’s expertise in analog cameras & films made it easy for it to move to the
digital imaging space.
Types of Brand Extensions
19. Types of Brand Extensions
5. Companion products
Some brand extensions are a “natural” companion to the products the company
already makes
Example 1: Colgate Example 1: FujiFilm
Types of Brand Extensions
20. Types of Brand Extensions
6. Vertical extensions
Some brand extensions are vertical extensions of what they currently offer.
A brand can use their “ingredient/component” heritage to launch products in a
more (or sometimes less) finished form.
Example 1: Cadbury’s Example 1: Maggi
Types of Brand Extensions
21. Types of Brand Extensions
7. Same customer base
Many brand extensions represent a marketer’s effort to sell something else to its
large and captive customer base.
Example: VISA
VISA launched travelers checks directed to its credit card customers.
Types of Brand Extensions
22. Types of Brand Extensions
8. Designer image/status
Certain brands convey status and hence create an image for the user
Example: Gucci
Some brands like Gucci promote a lifestyle that people would like to identify
themselves with
Types of Brand Extensions
23. Brand Extension Strategies
Product Branding:
The brand is promoted exclusively so that it acquires its own identity
and image.
The company brand name is not emphasized and the brand gains no
benefit from the company name.
Example:
24. Brand Extension Strategies
Line Branding:
It starts with one product to cater to a consumer group and later
extends to other products to cater to the needs of the same
consumer group.
The products in the line draw their identity from the main brand.
Example:
(“Source of radiant beauty”)
25. Brand Extension Strategies
Range Branding:
Here the brand moves beyond product complimentaries unlike Line
Branding.
All product share a common promise which stems from the firms brand
area of competence.
Example:
26. Brand Extension Strategies
Umbrella Branding:
A single brand is used in all products, where investing in a single
brand is less costly than trying to build a number of brands.
Example:
27. Brand Extension Strategies
Source / Double Branding:
It combines the firm’s name with the product brand name. It is a
hybrid of umbrella brand and product brand strategy.
The product is given a brand name and is combined with the name of
the firm.
Example:
28. Brand Extension Strategies
Endorsement Branding:
It is a modified version of double branding, where the product brand
name becomes more significant, and the company brand name
becomes less significant.
Example:
29. • Significantly decreases perceived customer risk and increases product /
service acceptance
• Generates incremental revenue and profit for the brand
• Helps clarify and broaden brand meaning to consumers
(eg. extending Hallmark into candy and flowers may help redefine the brand,
expanding it from “greeting cards” to “ways to show you care.”)
• Reinforcing and building upon key brand associations
• Extending the brand’s reach and relevance to new consumers
• Laying the groundwork for future extensions
• Increase and leverage brand equity
Benefits of Brand Extensions
30. • Marketers capitalize on brand awareness, they can also leverage the
associations consumers have of the parent brand
• Consumers who favorably evaluate a parent brand are more willing to try and
adopt the brand extension than an unfamiliar brand in the same category. They
trust a known brand name.
• Consumer is already aware of the brand and the main task remaining is to
communicate the specific benefits of the innovation
• The existing well known brand represent a promise of quality, useful features
etc. for the consumer. Thus, extension will benefit fame and good opinion of the
brand.
• Lower cost compared to launching a new brand.
• Increases brand visibility by making it appear in various categories
Benefits
31. • Creating confusion regarding brand meaning
• Tarnishing the quality image
• Conflicting with or counteracting key brand associations
• Creating new, undesired brand associations
• If done in great excess with no focus, completely diluting brand meaning and
overexposing the brand in the market place
• Creating confusion regarding brand meaning
• Creating new, undesired brand associations
• “Turning off” current key consumer segments
Risks
32. • If done in great excess with no focus, completely diluting brand meaning and
overexposing the brand in the market place
• Cannibalization of existing products of the brand
• Dilution of existing brand image
Risks
33. • Have you identified what your brand owns in the consumer’s mind?
• Have you identified all areas in which the consumer gives your brand
permission to operate?
• Do you have a clear understanding of whether your brand is over or
under extended?
• Have you identified all the ways your brand and others in its category
have made compromises with the consumer?
• Have you identified new categories for growth? Can you create new
categories that meet previously unmet consumer needs?
Checklist for Brand Extension
34. • Have you targeted new market segments to which you would like your brand to
appeal?
• Have you explored ways to make your brand more relevant to the next
generation of consumers?
• Do you know what must be done to ensure the parent brand maintains a
relationship with the consumer throughout his or her life (cradle-to-grave
marketing)?
• Do you have a plan that specifies what categories your brand will enter next, in
what order it will enter them and on what time frame?
Checklist for Brand Extension
35. Consider General Motors.
What’s the difference between a Chevrolet, a Pontiac and a Buick?
In 2005 GM announced it would narrow its selection of cars.
But this belated effort to bring the automaker’s brand schizophrenia under control is too late.
Beware of Brand Schizophrenia
Chevrolet Pontiac
Buick
36. • General Motors mucked up its brands over decades of
endless line extensions. But Mercedes Benz has done it
in less than one decade.
• Once upon a time, it was a high-quality, highly
engineered, prestigious car.
• But now, if you wander into a dealership in Europe,
you’re faced with the following lineup: A-Class, B-Class,
C-Class, E-Class, S-Class, CLK, CLS, CL, SLK, SL, M-Class
and G-Class.
• The prices range from 20,000 to 200,000 euros.
• The result is that in Europe, Mercedes Benz is not
listed as the top brand. The Audi A8, BMW, Maserati and
Jaguar have taken over this position.
Beware of Brand Schizophrenia
37. In 1985, Coca-Cola infamously introduced an identity-blurring new brand, New Coke. A
massive consumer backlash ensued, and the company quickly reinstated its familiar Classic
Coke.
Beware of Brand Schizophrenia
Once a company abandons its brands' distinctive personalities or positions,
it's just a matter of time before confused customers start to drift away.
38. Product extensions, are versions of the same parent product that serve a segment
of the target market and increase the variety of an offering.
Examples:
Coke vs. Diet Coke
Brand Extension V/s Product Extension
A successful brand helps a company enter new product categories more easily.
41. • Extending into a category in which the brand adds nothing but its identity (its
products or services are not significantly different from current products or
services in the category)
• Extending through opportunistic brand licensing without regard to impact up
on the brand
• Extending into lower (and, sometimes higher) quality segments
• Not fully understanding brand benefit ownership, transfer or importance
Common Brand Extension Problems
42. Success Characteristics
• The parent brand is seen as having favorable associations
• There is a perception of fit between the parent brand and the extension
product
• The positive brand associations with the parent brand should not become
negative with the extended product
• A successful extension not only contributes to the parent brand but also
enables a brand to be extended farther
• Advertising strategy for the extension emphasizes information about the
extension rather than reminders of the parent brand
45. Reliance is the first and only private sector Company from India to feature
in the 2004 Fortune Global 500 list of the World's Largest Corporations.
Group's annual revenues are in excess of US$ 34 billion
Backward vertical integration has been the cornerstone of the evolution
and growth of Reliance
The Group exports products in excess of US$ 20 billion to 108 countries
in the world.
Major Group Companies
Reliance Industries Limited
• Reliance Petroleum Limited
• Reliance Retail Limited)
• Reliance Industrial Infrastructure Limited
46. Mukesh Ambani plans to build his own airport
Anil Ambani in race to buy out SpiceJet
Reliance Industries Ltd (RIL), India’s largest private company by
revenue, is in talks with the country’s largest private carrier, Jet
Airways (India) Ltd, for picking up a small stake in the airline
47. Airline update …..
India to get mobile airports soon
Such airports that can be transported in trucks and set up anywhere in
20 minutes in the
Can take aircraft loads of 26-40 tonnes.
Low-cost airlines could save on fuel, taxes and other things
if they operate to smaller towns and airports where they get special
discounts, including the airport use and reduced duty on aviation fuel.
50. Objective
• Increase penetration in the Indian market by
linking metros and business oriented semi –metros
(Hyderabad – Vijay Wada / Chandigarh – Ludhiana/ )
• Region wise sector allocation
• Build customer loyalty by offering affordable fares
• Develop urban & semi-urban markets
• Get stakes in national carrier / merger / acquisition
51. TARGET SEGMENT: Business men from urban & semi urban towns
POSITIONING : DUNIYA KI SAIR APNE MUTTHE MEIN
Ab udne ki aazadi apne paasCOMMUNICATION:
