The document discusses strategies for line extensions and brand extensions. It provides examples of how brands like Bisleri, Pond's, LG, and Amul have extended their product lines to include different sizes, flavors, forms etc. to cater to varying customer needs. Brand extensions involve using an existing brand name to promote products in new categories. While this strategy can leverage brand recognition, it also risks diluting the brand image or cannibalizing parent brand sales if not implemented carefully.
The document discusses strategies for line extensions and brand extensions. It provides examples of how brands like Bisleri, Pond's, LG, and Amul have extended their product lines to include different sizes, flavors, forms etc. to cater to varying customer needs. Brand extensions involve using an existing brand name to promote products in new categories. While this strategy can leverage brand recognition, it also risks diluting the brand image or cannibalizing parent brand sales if not implemented carefully.
The document discusses strategies for line extensions and brand extensions. It provides examples of how brands like Bisleri, Pond's, LG, and Amul have extended their product lines to include different sizes, flavors, forms etc. to cater to varying customer needs. Brand extensions involve using an existing brand name to promote products in new categories. While this strategy can leverage brand recognition, it also risks diluting the brand image or cannibalizing parent brand sales if not implemented carefully.
representative of customers varying quantity needs. It suggests the presence of usage segmentation. Customers differs in terms of their usage quantities. The brand has to fill the whole spectrum with products as per the needs of various segments.
EXAMPLE Bisleri is the pioneering brand in the mineral water category. Originally, Bisleri used to come in a one litre bottle. But recently, Bisleri has exhibited a spate of innovations. The brand launched bottles of different sizes and quantities. The Bisleri portfolio now includes one litre, 1.2 litre, 1.5 litre and 5 litre bottles. LINE EXTENSION STRATEGIES Product Sizes Bisleri 1.1 ltr Bisleri 5 ltr Bisleri 1.5 ltr Bisleri 1.2 ltr Bisleri .5 ltr Colour Etc.,
Pantene Pink Pantene Black Pantene White Flavours Ingredient Rasna Orange Rasna Mango Rasa Rose , etc Colgate gel Colgate Herbal Colgate Salt etc., Form Vim Liquid Vim Powder Vim Bar WHY LINE EXTENSIONS? In most of the product categories including fast moving consumer goods, consumer durables and services, line extension has been the name of the game. It is an expansionist move. The firms seem to seek growth more vigorously.
Brand Extensions
BRAND EXTENSIONS Using an existing brand name to promote a product in a different category, is Brand Extension. The key difference between line and brand extension is the product category. In line extension the pdt. Category remains constant whereas in brand extensions product category is a variable. EXAMPLE Ponds - Cold cream, Toilet soap Shampoo, Tooth paste, Moisturising lotion, Talc & Face wash. LG Television, Refridgerators, Computer monitors, Microwaves, Air Conditioners, Washing Machines & Mobile phones. Park Avenue Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap & Razar. BRAND EQUITY- CORPORATE ASSET Brand extension Using an existing brand name to promote a product in a different category. Eg. Ponds Cold cream Toilet soaps
Face wash Talc Shampoo Moisturising lotion Toothpaste Park avenue Shirts Shaving cream Jeans Belt Perfumes Soaps Razor ADVANTAGES Enhance the parent brand image
Convey broader brand meaning to consumers
Increase market coverage and returns
Reduce risk perceived by customers & distributors
Increase efficiency of promotional expenditures , packaging, labeling distribution channels
Revitalise the brand
DISADVANTAGES Dilution of the existing brand image Cannibalization A disaster can occur TYPES OF EXTENSIONS Product Form Extension
Amul Milk Amul Condensed Milk
Real Juices Real Juice Concentrate Companion Product The idea here is to capitalise on product complimentarity .
Colgate Dental Cream Colgate Tooth Brush
Gillette Razors Gillette Shaving Cream Gillette After Shave
SAME CUSTOMER BASE:- It launch a range of products to meet the needs of this group of consumer.Eg Loreals. DISTINTIVE TASTE/INGREDIENT To launch a brand in a different category. Eg:- Amul:- milk,icecream,chocolate,cheese,liquid fresh milketc. MAGGI Nestle India introduced the Maggi brand in 1982
In 1997 ,Nestle changes the formulation of Maggi noodles
In 1998, the sale of Maggi declined
In 1999, Nestle reintroduced the old formulation of noodles MAGGI EXTENSIONS Veg.Atta Noodles Dal Atta Noodles Rice Noodles IMAGE RELATED BRAND EXTENSION The company leverage its image to launch new products.
Manufactured by Glaxo Smith Kline Consumer Healthcare Products
Leader in health food beverages in India
Horlicks holds 58% of market
HORLICKS EXTENSIONS Horlicks Variants Mother Horlicks Horlicks Lite Women Horlicks Junior Horlicks Horlicks Lite Bite BARBIE IM A BLONDE BIMBO GIRL, IN A FANTASY WORLD.....LIFE IN PLASTIC. ITS FANTASTIC Launched in March 1959 Fashion doll manufactured by Mattel.Inc. The doll was marketed as a "Teen-age Fashion Model The first Barbie dolls were manufactured in Japan Debuted at the American Toy Fair in New York City
BARBIE EXTENSIONS CATEGORY RELATED EXTENSION DETTOL Dettol a brand of Reckitt Benckiser stood for trusted brand in India since 1933 Popularity extends over 100 countries Consumers-- King of Germ kill Brand offers both rational & emotional benefits Dettol perceived as --Doctors Friend Dettols Extension Dettol liquid Dettol soap Dettol plaster Dettol shaving cream Dettol hand wash Dettol body wash UNRELATED EXTENSION:- Eg:- Reliance venture enter into the retail from petroleum,textile..etc COMPANY EXPERTISE Companies uses their expertise to launch brand extension in different product categories. For eg Samsung uses is innovative ,technology to leverage its expertise to make Samsung television,smartphone,refrigertors..etc. COMPANY EXPERTISE Brand Extensions often come in the forms of different product category introductions using a common name but emanating from a common expertise pool. This strategy is particularly seen in Japanese companies.
Honda Cars Honda Lawn movers
Honda scooters
BRAND IMAGE OR PRESTIGE Status brand offer prestige,and hence create an image of the product. Eg:- Lifestyle,Designers..etc. BRAND IMAGE OR PRESTIGE A brand extension may involve a foray into unrelated product categories based on a brands exclusive image or prestige value.
Steel, Automobile, Heavy Vehicles, Watches, S/W devpt. Training etc., DISTINCT FEATURES OR BENEFITS OF THE BRAND. Eg:- the Himani Navratna oil specially made for cooling Purpose.
BRAND DISTINCTION Many brands achieve distinction in the form of a unique attribute, benefit or feature which gets uniquely associated with the brand. For instance, Parachute may have expertise of coconut nourishment in customers minds over time. This would give Marico Industries, the brand owner, the opportunity to launch a variety of products exploiting this distinction. Parachute Hair Oil Shampoo Cream Cooking Oil Baby Soap Baby Oil FAILURE OF BRAND NAME TO ADD VALUE 1. Negative association 2. Problem of fit 3. Cannibalization of parent brands sales 4. Creation of undesirable associations. 5. Weakning of existing association 6. Effect of brand crisis.