What Is A “Brand” A BRAND is symbolic embodiment of all the information connected to a Company, Product or Service. It serves to create associations and expectations from products made by a producer, in the mind of the consumer. The key objective being “to create a Relationship of TRUST with its consumers”.
A combination of a new brand with an existing brand.
BRAND EXTENSIONS A Brand Extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3) When a new brand is combined with an existing brand (approach 3), the brand extension can also be a sub-brand.
BRAND EXTENSIONS An existing brand that gives birth to a brand extension is the parent brand. If the parent brand is already associated with multiple products through brand extensions, then it may also be called a family brand.
LINE EXTENSION The parent brand is used to brand a new product that targets a new market segment with in a product category currently served by the parent brand. A line extension often adds a different flavor or ingredient variety, a different form or size, or a different application for the brand.
Can cause the company to forgo the chance to develop a new brand
When are Brand Extensions Appropriate? When Prior Brand equity exists Consumer must see some “connection” between the proposed extension and the parent brand. The proposed extension contributes to and reinforces the overall brand equity of the parent brand.
Conditions For Evaluating Consumer’s Brand Extension Consumers have some awareness & positive associations about the parent brand At least some of these positive associations will be evoked by the brand extension Negative association are not transferred from the parent brand Negative associations are not created by the brand extension
Define actual & desired consumer knowledge Identify possible extension candidates Evaluate potential of the extension candidate Evaluate potential candidate feedback effects Consider possible competitive advantages & reactions Design marketing campaign Evaluate extension success & effects on parent brand equity Evaluating Brand Extension Opportunities