Brand Hierarchy

Four levels
1. Corporate or company brand
 Four Levels
2. Family or Umbrella brand
 Four Levels
3. Individual brand or category (P&G)
 Four Levels
 Modifier or extensions
 Ansoff Product/Market Growth Matrix
10
Brand Extension
 Brand Extensions
More than 80% of all new products

Different types of extensions

1. Same product in different form
2. Distinctive taste, ingredient
3. Companion product
4. Expertise
 Types of Brand Extension
 Similar product in a different form from the original
parent product:
 This is where a company changes the form of the
product from the original parent product.
 Types of Brand Extension (Contd)

 Distinctive flavor/ingredient/component in the new

item:
 When a brand “owns” a flavor, ingredient or component,
there may be other categories here consumers want that
property.
 Types of Brand Extension (Contd)

 Companion products:
 Some brand extensions are a “natural”
companion to the products the company already
makes. (Colgate)
 Types of Brand Extension (Contd)

 Expertise:
 Over time, certain brands may gain a reputation for
having an expertise in a given area.

 Leverage can be achieved when extending into areas

where this special expertise is deemed important.
( Johnson & Johnson baby products kit)
 Types of Brand Extensions
 New product
 (new brand name in a new product category)

 Flanker brand
 (new brand in an existing category for the firm)
 Types of Brand Extensions (Cont’d)

 Line extension
 (extending existing brand name in an existing category)

 Franchise or brand extension

 (existing brand name in a new category)
 When does a Brand Extension Make
Sense?
 Strong brand extensions exist
 These associations provide a point of differentiation
and an advantage for the extension
 Vaseline Intensive Care:
Associations and Related Products

Associations Related Products

Moisturizer face cream
skin cream

Lotion sunburn
after-shave
baby lotion

Medicinal antiseptic
first-aid cream
hemorrhoid cream
 Product - Line Strategies
 The primary reasons for offering a line:

 Heterogeneity of preferences
 Thwart competition
 Many customers are variety seekers
 (keep high share of customer)
 Product - Line strategy based on product
segmentation
 Positioning within a product line:
 whether it would be better for all our entries to stand
alone, or
 should we market to multiple segments using an
umbrella branding strategy?
 Key questions
 How many products should be in the line?

 How should the products in the line be

targeted and differentiated?

 How should resources be allocated across

the product line to maximize profitability?
Line extension strategy
 Brand stretch
 Vertical Stretch
 Upward (Premium markets)
 Downward (Value or mass markets)
 Brand Stretch
 Horizontal Stretch
 Product Line Analysis
and Product Line Length
• Product Map
Up-market stretch • Line Featuring

• Line Stretching

• Line Pruning/ Line

Down-market stretch
Rationalization
Product A: To bring in footfall

Low Price
Offer valid
for two
weeks only
Product B: The actual interest of seller

Starting from 4999/-

 Line Featuring
 Useful when you have many products to be sold, and you have freedom to
play around with prices of few products.
 You pick up a low priced product (say, A) from your portfolio. It is
important to note that A and your main product B are from the same
product line and B is priced higher than A.
 Advertise A heavily in the local media offering heavy discounts on A.
 Chances are very high that your own margins for A are far good enough, or
else you can negotiate for higher margins with the suppliers for larger
quantities of A.
 Heavy promotion of A creates hype and traffic to your store for A. Now lies
the trick.
 Your sales team should be trained enough to compare A and B while always
keeping the B in high esteem.
 If you are able to convert some of you’re a prospects into B, you are in win-
win situation.