BY:

DINESH KATHI
DIVYANT SINGH GAHLOD
PAWAN KUMAR
RITESH KUMAR
SAMPADA HARSHE

BRAND EXTENSION OR BRAND
STRETCHING
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 also refers to the expansion
of the brand itself into new territories or
markets.
EXAMPLES
THE NEW PRODUCT THAT IS MARKETED UNDER
THE PARENT BRAND NAME IS CALLED SPIN
OFF.
PRODUCT EXTENSION
Product extensions are versions of the same
parent product that serve a segment of the
target market and increase the variety of an
offering. An example of a product extension
is Coke vs. Diet Coke in same product category
of soft drink. This tactic is undertaken due to
the brand loyalty and brand awareness they
enjoy consumers are more likely to buy a new
product that has a tried and trusted brand
name on it.
CATEGORIZATION THEORY
Fundamental theory to explore effects of brand
extension.
Helps consumer to reduce the confusion
regarding the product.
Consumer categorize new information into
specific brand or product class label & store it.
Where do you store Maggi soup? In soup section
or Maggi brand section?

BRAND EQUITY & BRAND EXTENSION
Quality of core brand creates a strong position
for brand and lower the impact of fit in
consumer evaluation.
Similarity between core brand and extension is
the main concern of consumer perception of fit.
The higher the similarity is the higher
perception of fit.
Consumers knowledge and experience affect
the evaluation before extension product trail.
The more innovation of extension product is,
the greater positive fit can perceive.

STRATEGIC PLANNING OF BRAND
EXTENSION
Success of brand extension!!!!!
Bayesian factor model.
Illustrate & validate model in three categories
(jeans, magazines & cars).
Gives idea about brands with potential to
extend.
Brand extension strategies
Product category extension
Co-Branding
Line
extension
Sub-Branding
Line extension strategy
Product size
Ex-INTEL+COMPAQ, RENAULT+NISSAN
Brand extension categories
Category related brand extension
image related brand extension
unrelated brand extension
Example
Brands Category related
brand extension
Image related
brand extension
Unrelated brand
extension
Amul butter Amul lite Amul chesse Amul computers
Wipro computers Wipro Laptops Wipro it services Wipro lightings
Tata indica Tata indica V2 Tata nano Tata tea
Samsonite suitcase Samsonite brief case

Samsonite laptop
bags
Samsonite
computers
Types of Extensions
Product form extension A product launched
in a different form usually means line
extension, but if a different product form
constitutes an entirely different product
category.
Example:
Amul milk Amul Condensed milk
Real Juices Real Juice Concentrate
Customer Franchise
A marketer may extend a product range in
order to meet the needs of a specific
customer group.
J & J
Baby
Talc
J & J
Baby
Oil

J & J
Baby
Cream

J & J
Baby
Shampoo

J & J
Baby
Diapers

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
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.,
Good Bad & Ugly Extension
Good Extension: When parent brand contributes
positively to the extended product.

Bad Extension:
1) When the name does not add value
2) Name passes on negative associations to the
extension.

Ugly Extensions: Extensions succeed but at a cost,
hurting the brand image of the parent brand.
Advantages of Brand Extension
Allow for Packaging and Labeling
Efficiencies

Enhance the Parent Brand
Image
Bring new customers into the
Brand Franchise and Increase
Market Coverage
Permit Subsequent Extensions

Permit Consumer Variety-Seeking

Provide Feedback Benefits to
the parent brand

Clarify Brand Meaning
Improve Brand Image
Reduce Risk Perceived by
Customers
Increase Efficiency of
Promotional Expenditure

Reduce Costs of
Introductory and Follow-
up Marketing Program

Avoid Cost of Developing
a New Brand

Disadvantages of Brand Extension
Can Succeed but Diminish Identification with Any One
Category
Can Succeed but Hurt the Image of the Parent Brand
Can Fall and Hurt Parent Brand Image
Can Succeed but Cannibalize Sales of Parent Brand
Can Cause the Company Forgo the Chance to Develop
a New Brand
Can Dilute Brand Meaning
Can Confused or Frustrate Consumer
Can Encounter Retailer Resistance

Evaluating Brand
Extension Opportunities
Identify Possible Extension Candidates
Evaluate the Potential of the Extension
Candidate
Design Marketing Program to Launch
Extension
Evaluate Extension Success and Effects of
Parent Brand Equity
How Consumer Evaluates Brand
Extensions
CATEGORIZATION
THEORY
DEGREE OF FIT ATTITUDE
TRANSFER



Effect on brand
Extension
Evaluation



Effect on Core
Brand Attitude
Nature Of
Psychological
Process
EXTREMELY SIMILAR OR
TYPICAL
+ + - - No Effect (+ -)
CATEGORIZATION
MODERATELY SIMILAR
OR TYPICAL
+ - - -
ATTEMPTED
CATEGORIZATION
+ PIECEMEAL
PROCESSING
EXTREMELY DISSIMILAR
OR ATYPICAL
+ - - + No Effect (- +)

CATEGORIZATION
Negative Information of Extended
Product Category
CATEGORIZATION THEORY
PERCEIVED
FIT OF
BRAND
EXTENSION
PRODUCT-
LEVEL
SIMILARITY
PERCEPTION
BRAND
EXTENSION
PRODUCTS
EXISTING
BRAND X
PRODUCT
CONCEPT
CONSISTENCY
PERCEPTION
BRAND
EXTENSION
PRODUCTS
BRAND X
CONCEPT
EVALUATION OF BRAND EXTENSION
FINDINGS AND ANALYSIS:
Thus there is no significant difference
on the similarities of each Brands and
their Extension.
FINDINGS AND ANALYSIS:
Thus there is a significant difference on
the Reputations of each Brands and
their Extension.
FINDINGS AND ANALYSIS:
Thus there is a significant difference on
the Association of each Brands and their
Extension.
FINDINGS AND ANALYSIS:
Thus there is a significant difference on
the Price Perception of each Brands and
their Extension.
FINDINGS AND ANALYSIS:
Over all I am very positive to the following extensions.

http://www.youtube.com/watch?v=PXSZ0xg6O2U&list=PLesB_zg2HUmHS_71qSTgT_rlq1EBJD52k
CONCLUSION
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.