Brand extensions


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Brand extensions

  1. 1. A short tale of remarkable achievements and epic failures
  2. 2.  Product Line Stretching the use of an established product’s brand name for a new item in the same product category.
  3. 3.  Coca-Cola Successes in Product Line Stretching:  Changes in a products quality, color, size, taste, etc.  A new product, slightly different to a company's existing range, designed to hit additional target audiences.
  4. 4.   A burger launched especially for adults  Marketed as the ‘Burger with the Grown-up Taste’  Estimated cost of marketing campaign was $100 million  One of the biggest failures in fast food industry McDonald’s Arch Deluxe Failures in Product Line Stretching:
  5. 5.   Positioned as a “sophisticated” product meant for adults.  Price was too high for a burger at that time ($2.29)  Advertisements where kids (their top customers) were shown shunning the products (calling it ‘yucky’) and saying they don’t understand it Failures in Product Line Stretching:
  6. 6.  Brand Extension ...using the existing and well-established brand name in a new product category
  7. 7.  Rolls-Royce Aircraft Engines second-biggest aircraft engine manufacturer in the world  Expanded from cars to planes during WWI  Transfer of brand value: craftsmanship and reliability Successful Brand Extensions:
  8. 8.  Virgin Atlantic Airways “One of the boldest brand extensions in history” Transferring the style, attitude and vibe of Virgin Music & Records to a different industry Successful Brand Extensions:
  9. 9.  Harley-Davidson Motorcycles  Luxury good with a strong history and culture  Rebellious and wild image  Harley-Davidson's cake decorating kits  Sold to bakeries and pastry shops to make birthday confections Failed Brand Extension: