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1.

Brand extension or brand stretching is a marketing strategy in which a firm marketing


a product with a well-developed image uses the same brand name in a different product
category.

Brand extension

Brand extension refers to the use of a successful brand name to launch a new or modified
product in a same broad market.

A successful brand helps a company enter new product categories more easily.

For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to
become a washing powder brand too.

Brand stretching

Brand stretching refers to the use of an established brand name for products in unrelated
markets.

For example the move by Yamaha (originally a Japanese manufacturer of motorbikes) into
branded hi-fi equipment, pianos and sports equipment.

When done successfully, brand extension can have several advantages:

• Distributors may perceive there is less risk with a new product if it carries a familiar brand
name. If a new food product carries the Heinz brand, it is likely that customers will buy it

• Customers will associate the quality of the established brand name with the new product. They
will be more likely to trust the new product.

• The new product will attract quicker customer awareness and willingness to trial or sample the
product

• Promotional launch costs (particularly advertising) are likely to be substantially lower.

2. Sub brands form part of a family of brands and they are often a means of tailoring a
product or service to a particular market sector or niche market under the parent brand.
The use of sub-brands is not new. They have been used by a number of businesses, including
operators, for a long time. Korean MNOs, for example, have used sub-brands since 1999.

For example: service is parent brand & its sub brands are cheeta, calza etc.

3. Private branding is when a large distribution channel member (usually a retailer), buys
from a manufacturer in bulk and puts its own name on the product. This strategy is, with
some exceptions, generally only practical when the retailer does very high levels of
volume.
The advantages to the retailer are:

 more freedom and flexibility in pricing


 more control over product attributes and quality
 higher margins (or lower selling price)
 eliminates much of the manufacturer's promotional costs

The advantages to the manufacturer are:

 reduced promotional costs


 stability of sales volume (at least while the contract is operative)

4. Line Extensions occur when a company introduces additional items in the same
product category under the same brand name such as new flavors, forms, colors, added
ingredients, package sizes. This is as opposed to brand extension which is a new
product in a totally different product category.Line extension occurs when the company
lengthens its product line beyond its current range. The company can extend its product
line down-market stretch, up-market stretch, or both ways.

For example, maker of a popular perfume may introduce shampoos, bath soaps, body
powders, etc., under the perfume's name

5. Co-branding, also called brand partnership is when two companies form an alliance to work
together, creating marketing synergy. The term 'co-branding' is relatively new to the business
vocabulary and is used to encompass a wide range of marketing activity involving the use of two
(and sometimes more) brands. Co-branding is an arrangement that associates a single product
or service with more than one brand name, or otherwise associates a product with someone
other than the principal producer. The typical co-branding agreement involves two or more
companies acting in cooperation to associate any of various logos, color schemes, or brand
identifiers to a specific product that is contractually designated for this purpose. The object for
this is to combine the strength of two brands, in order to increase the premium consumers are
willing to pay, make the product or service more resistant to copying by private label
manufacturers, or to combine the different perceived properties associated with these brands
with a single product.

Examples

Procter & Gamble). Sephora and Operation Smile

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