ByAbhishek Ankur Neha Doda Preem deep Kunal Agarwal Varun Dua

Using an existing brand name to promote a product , is Brand Extension. A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals.

There must be some logical association between the original product and the new one.

COST OF NEW LAUNCHES

Developing a new brand involves huge costs.

Marketer can bring down costs while increasing the probability of success by doing brand extension.

PROMOTIONAL EFFICIENCY
Promoting individual brands is a tough task. Promoting Dettol brand of soap will eventually benefits the other brands which share the same name. Marketers task is reduced because the brand name awareness already exists.

CONSUMER BENEFITS

Customer is already familiar with the brand , so it offers a less risk exposure to them. Customer knows what to expect from the brand and can easily conclude the performance delivery of the brand.

Reduce risk perceived by customers & distributors. Decrease cost of gaining distribution & trial. Increase efficiency of promotional expenditures. Avoid cost (and risk) of developing new names Allow for packaging and labeling efficiencies Variety-seeking

Enhance the parent brand image Improve strength, favorability, and uniqueness of brand associations. Improve perceptions of company credibility Convey broader brand meaning to consumers. Clarify core benefit proposition and business definition of the company . Bring new customers into the franchise and increase market coverage

Extensions have risks, too. They can fail. Can confuse or frustrate the consumers. Can encounter retailer resistance. Can fail and hurt parent brand image . Can succeed and cannibalise sales of the parent brand.

Can succeed but diminish identification with any one category. Can succeed but hurt the image of the parent brand. Can dilute the brand meaning. Can cause the company to forge the chance to develop a new brand

The parent brand is used to brand a new product that targets a new market segment with in a product category currently served by the parent brand. A line extension often adds a different flavor or ingredient variety, a different form or size, or a different application for the brand.

Head & Shoulders Extension

The parent brand is used to enter a different product category from that currently served by the parent brand.

Extensions involve transfer of associations from the parent brand to the extension. The brand extendability depends on its character. The brands can be classified into 5 types through extendability.

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,

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.,

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.

A brand may be defined by its centre of interest. It may reflect its core spirit. Example Gillette maintains its focus on mens 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.

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

PONDS

Talc

Feminine

Floral

Body care

Cream

-Body Talc -Talc for Special occasions

Nail enamels Lip colours etc

Room Freshner, soaps, Fragrance, shampoo, etc

Body lotion, Body oil, creams

Beauty cream, Conditioning cream, cleansing cream, etc

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.

What to extend into parent extension image to fit classic paradox of brand extensions .

When are Brand Extensions Appropriate?

When Prior Brand equity exists. Consumer must see some connection between the proposed extension and the parent brand. The proposed extension contributes to and reinforces the overall brand equity of the parent brand.

Brands should not be extended unless they are well-known, have high awareness and a good reputation among the new target market. Brand extensions must be a logical fit with consumers expectations. Brand extensions must have leverage in the new category a transfer to the new product of a distinctive property associated with the parent brand that gives the brand extension an edge in the new category. The test: Just knowing the brand name, customers of the new category should be able to identify a reason why they might prefer the new brand extension to existing competition. Brand extensions that could create confusion or a negative image for the parent should not be undertaken. Brands that consumers use synonymously with a category (generic) should not be extended to other categories. Brands should not be stretched to too many diverse categories risking dilution in the long run. (There are cases, however, where a brand dominates a modest sized category and has no room to grow. In these instances, the upside potential of extending is worth the risk of dilution e.g., Arm & Hammer

Brand extensions that will not create positive synergy for the parent brand should not be pursued. (Ask consumers whether their opinion of the parent would be lowered if the new brand extension were available) Brand extensions must make business sense.

Every brand extension should open a category for the firm. The whole point of brand extension is to efficiently and successfully enter a new category.
A critical part of every brand extension research study is developing a brand plan. Short and long term possibilities should be identified up-front.

Conditions For Evaluating Consumers Brand Extension

Consumers have some awareness & positive associations about the parent brand.
At least some of these positive associations will be evoked by the brand extension.

Negative association are not transferred from the parent brand.

Negative associations are not created by the brand extension.

Evaluating Brand Extension Opportunitie

Define actual & desired consumer knowledge

Identify possible extension candidates

Evaluate potential of the extension candidate Evaluate potential candidate feedback effects Consider possible competitive advantages & reactions Design marketing campaign Evaluate extension success & effects on parent brand equity

Line branding: Launching very similar kind of product under same brand name
Multiproduct branding strategy whereby a firm exploit its existing successful brand name by adding one or more new products which are closely related to each other under a same brand name objective: serve different customer needs or market segments while taking advantage of the widespread name recognition of the original brand Example: DOVE shop, shampoo, conditioner, hair oil, face wash etc

Range branding it is extending a single brand across several related categories. Its bestow a single brand name and promote through a single promise a range of products belonging to same area of competence. Example: Nike shoe, shocks, t-shirt, Bermuda, track suit, bags, even mobile app

Range branding

Line branding