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Managing Brand Extensions
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Managing Brand Extensions

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  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • http://www.brandextension.org/definition.html
  • **small edit on the wording
  • **fixed a typo

Managing Brand Extensions Managing Brand Extensions Presentation Transcript

  • “Extendonomics” Managing BRAND EXTENSIONS Prof. Sameer Mathur, Ph.D. © Sameer Mathur 1
  • Contents i) A definition of a Brand Extension ii) Why bother studying Brand Extensions? iii) A Classification of Brand Extensions iv) 4 types of Category Extensions v) Benefits of Brand Extensions vi) How consumers evaluate Brand Extensions © Sameer Mathur 2
  • Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 © Sameer Mathur 3
  • Brands are Assets Brands are Assets Know when to protect and defend © Sameer Mathur Know when to extend and exploit 4
  • Let’s begin with a simple definition.. http://www.BuddingMarkets.com © Sameer Mathur 5
  • Brand Extension - Definition Using the leverage of a wellknown brand name to launch a new brand 6 © Sameer Mathur 6
  • New Products and Brand Extensions Product Category Existing Existing New ? ? ? New Product Brand Name New © Sameer Mathur 7
  • Why bother studying Brand Extensions? http://www.BuddingMarkets.com © Sameer Mathur 8
  • Motivation 81% of new products launched in the US in the 1990s were Brand Extensions © Sameer Mathur 9
  • How could we classify Brand Extensions? http://www.BuddingMarkets.com © Sameer Mathur 10
  • Classification Line Extension Extension within the same category Category Extension Extension in a different category © Sameer Mathur 11
  • Line Extension 1886 1982 (Within the Same Category) © Sameer Mathur 12
  • Category Extension 1957 2002 (In A Different Category) © Sameer Mathur 13
  • 4 Types of Category Extensions http://www.BuddingMarkets.com © Sameer Mathur 14
  • Category Extension #1 Complementary products “Brand Extensions: The Good, the Bad, and the Ugly” David Aaker 1990 15
  • Category Extension #2 Complementary product New form “Brand Extensions: The Good, the Bad, and the Ugly” David Aaker 1990 16
  • Category Extension #3 Complementary product New form Same target segment “Brand Extensions: The Good, the Bad, and the Ugly” David Aaker 1990 17
  • Category Extension #4 Complementary product New form Same target segment Same corporate expertise Expertise in cheap plastic “Brand Extensions: The Good, the Bad, and the Ugly” David Aaker 1990 18
  • Recap: Classifying Brand Extensions http://www.BuddingMarkets.com © Sameer Mathur 19
  • Product Category Existing New Existing ? ? ? New Product Brand Name New © Sameer Mathur 20
  • Product Category Existing New Existing Line Extension Category Extension Flanker Brand New Product Brand Name New © Sameer Mathur 21
  • Why Do It? What are the two biggest reasons firms extend brands? http://www.BuddingMarkets.com © Sameer Mathur 22
  • Why Brand Extensions? Mitigate Risks and Cost Risks Over 90% of New Products Fail Cost Introducing a New Product is very Expensive © Sameer Mathur 23
  • Benefits Of Doing It.. http://www.BuddingMarkets.com © Sameer Mathur 24
  • Benefits Brand Extensions Benefit all Supply-Chain Members Consumers Signal Superior Quality Increases Likelihood of New Product Trial © Sameer Mathur 25
  • Benefits Brand Extensions Benefit all Supply-Chain Members Retailers Increases their willingness to stock new products © Sameer Mathur 26
  • Benefits Brand Extensions Benefit all Supply-Chain Members Manufacturers Reduces Promotional Expenses © Sameer Mathur 27
  • 3 More Benefits Of Doing It.. http://www.BuddingMarkets.com © Sameer Mathur 28
  • More Benefits… Brand Associations “The Mentos brand is associated with good breathe mints, therefore Mentos should also make good gum” © Sameer Mathur 29
  • More Benefits… Brand Awareness “I recognize the Cadbury brand, therefore these raisins must be good” © Sameer Mathur 30
  • More Benefits… Enhance Core Brand “I see Crest also makes good whitestrips, therefore their reputation for oral hygiene is now stronger in my mind” © Sameer Mathur 31
  • 2 points on how Consumers evaluate Brand Extensions http://www.BuddingMarkets.com © Sameer Mathur 32
  • Consumers How Do Consumers Evaluate Brand Extensions? Perception of Fit between the Parent Brand and the Extension © Sameer Mathur Consumer State of Mind 33
  • Perception of Fit Bad Fit © Sameer Mathur Good Fit 34
  • State of Mind “Abstract” State of Mind “Is Starbucks Ice-cream a good idea?” 35 More skeptical of brand extensions “A Mind for Brand Extensions” Larry Yu 2008 MIT 35
  • State of Mind “Concrete” State of Mind “Will I buy “Starbucks Icecream”? Often prefer brand extension to store brand 36 “A Mind for Brand Extensions” Larry Yu 2008 MIT 36
  • Summary i) A definition of a Brand Extension ii) Why bother studying Brand Extensions? iii) A Classification of Brand Extensions iv) 4 types of Category Extensions v) Benefits of Brand Extensions vi) How consumers evaluate Brand Extensions © Sameer Mathur 37
  • Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 © Sameer Mathur 38