SURPRISE TEST-3

Q3. Discuss Branding strategies – product, line, range

and umbrella branding

Q4. Explain 3 Cs of positioning?

Video Assignment Submission at:

rohit.e13211@cumail.in

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 INSTITUTE: Chandigarh University
DEPARTMENT: University School of Business
Subject Name and Code: 22BAT-738 Advertising and Brand Management
Brand Extension; Brand reinforcement, Brand revitalization

DISCOVER . LEARN . EMPOWER

 Brand Extension
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. The new product is called a spin-off. Organizations use this strategy to increase
and leverage brand equity(definition: the net worth and long-term sustainability just from
the renowned name). An example of a brand extension is Jello-gelatin creating Jello
pudding pops. It increases awareness of the brand name and increases profitability from
offerings in more than one product category.A brand's "extendibility" depends on how
strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo
brand successfully extended from clothing to home furnishings such as bedding and
towels. Both clothing and bedding are made of linen and fulfill a similar consumer function
of comfort and hominess. Arm & Hammer leveraged its brand equity from basicbaking
soda into the oral care and laundry care categories. By emphasizing its key attributes, the
cleaning and deodorizing properties of its core product, Arm & Hammer was able to
leverage those attributes into new categories with success. Another example is Virgin
Group, which was initially a record label that has extended its brand successfully many
times; from transportation (aeroplanes, trains) to games stores and video stores such a
Virgin Megastores.
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Some examples would include Apple, the technology company. Asides
from their flagship tabs, mobile phones, and laptops, they are also
involved in smart watches. Something similar is also happening at
Ferrari as they now have theme parks where you can test their
products without buying them.

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 Brand Reinforcement
Brand reinforcement it is the creation of more brand awareness, among both
existing customers and new ones. This process ensures that brand equity does not
reduce over an extended period. Almost every brand that has survived decades
have always made it a priority to reinforce their brand’s equity.
Example: Every new iOS update or release of a new product is a reinforcement
strategy to ensure their customers always know that they are committed to
delivering top-quality products. This helps them constantly stay ahead of their
competition and also ensure that customers old, new, and even people who don’t
buy their products know of their latest products.
Many established brands and companies take Apple’s approach to brand
reinforcement. Depending on their product or service, either a new set of adverts
or fresh packaging for the products.

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 Advantages
1) Enhances Profitability:As the number of loyal customers increases, it’s safe to say that
revenue will also increase. Having a proper brand reinforcement strategy can create a set of
customers that will consistently buy whatever it is you’re selling.

2) Strategy:Having a brand reinforcement strategy helps you prepare and avoid times when
your product would go through a decline. This helps the brand stay proactive and also creates
a contingency when there is a decline.

3) Improves Brand Equity:Brand reinforcement ensures that brand equity isn’t lost or
depreciates over time. It improves it and allows for newer customers.

4) Competition:In competitive markets, brand reinforcement can go a long way in ensuring

you maintain a lead amongst your competitors.

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 Disadvantages
Brand reinforcement has no disadvantage. It is simply a strategy designed to keep the brand’s
public image which is nothing but beneficial to every aspect of the brand. But undertaking a
process like brand reinforcement will have its difficult points and tasks that might have
consequences if not properly done or handled.
1) Cost:For a company to embark on a brand reinforcement process, it has to prepare itself
financially. While it isn’t always cost-intensive, it is serious enough to warrant attention to
ensure that it is done right and that cost was managed in any way possible.
2) Change:A lot of people are not open to change as we all know, so it won’t be a surprise
when some people are skeptical about the new process. These people may include some
employees, some customers, even investors. Going ahead with the plans can lead to the loss
of some of these customers and investors and that is never a good thing.
3) Confusion: In the process of Brand reinforcement, there might be some changes to some
physical representation of the brand. As a result, there would be confusion depending on how
much change is made. For a while at least, some people may mistake your product for that of
a new company.

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 Brand Revitalization
Brand Revitalization, this is a strategy utilized to improve products and services to meet the
demands and changes of the market. This is usually adopted when the product has reached a
stage of maturity in its growth life cycle and the profits from it are falling.
Example:Now the best-selling cigarette brand in the world, Marlboro was once almost
bankrupt. In the 1950s, which included their low ad spends due to advertising limits in those
times and the public’s growing health concern. Their sales began to drop quickly and
something had to be done, especially to help build their brand equity to last decades to come.
As a result of the government restricting cigarette adverts, they decided to sponsor some
other brands that could have fewer restrictions. This helped solve their advertising issues a bit,
but that was not enough. A decision was then made to move their distribution to nightclubs.
This helped take their product directly to their target customers.
To solve the issue of the growing health concerns, Marlboro created electronically heated
cigarettes for smokers with health concerns. This created a new set of customers and
expanded association.
Finally, they allowed their name to be used by a clothing brand, a move that helped grow both
the cloth and cigarette brands.
These deliberate and well-thought-out plans have fortified Marlboro’s brand equity and have
ensured high product sales. 9
 Similarities Between Brand Reinforcement and Brand Revitalization
They are both utilize marketing strategies: Brand Reinforcement and Revitalization both make
use of marketing strategies like adverts, improving logos and other physical representation of
the brand, etc.

Both are required to grow customers: While brand reinforcement is there to grow the
customers of an already existing and thriving brand, brand revitalization aims to grow that of a
product that is not making enough profits. In summary, both are there to help the growth of
customers.

Brand Equity: Brand equity is very important to both as it helps both of them achieve their aims.
This is because brand equity helps in keeping customers and making new ones.

Competition: They are both strategies to keep up or get ahead of the competition. With the help
of either of the two, the brand can stay competitive.

Innovation: Both of these strategies promote innovation as they require the brand to do
something different. They both push the company to either venture into something different or
better their current products and services. 10
 Differences
Asides from the fact that Brand reinforcement is employed in a bid to
improve a thriving product or brand and Brand revitalization to salvage
a product that is in a decline in terms of products, there aren’t many
differences between the two.
There are some subtle differences like how Brand reinforcement can be
another form of expansion for the company.

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 Thank You

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