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House OF Brands
Branded House
Improved Image
• Consumers build
perceptions
• Likely to expect same
performance
Reduced Risk
• Less perceived risk
with a...
Higher Promotional
Efficiency
• Ad-to-Sales ratio 10% for
extension as compared to
19% for new Brand
• Awareness of brand ...
Increased Market
• New customers in
Brand Franchise
• Diversified revenue
sources
Revitalized Brand
• Extensions renew
int...
• Suitability issues with related extensions
• New extensions may not get shelf space
Confused
Customers
• Only top-sellin...
• The extension might be a success
• Overlap of customers may lead to cannibalisation
Cannibalize
Parent Sales
• The exten...
Brand Extension
with due
diligence and
thought-out
action plan
Failure due to
over
exploitation of
brand
extension
• Created by Shubham Vijay during Brand Management course under
the guidance of Prof. Sameer Mathur (IIM Lucknow)
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
Brand Extension- Virgin
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Brand Extension- Virgin

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Slides cover Brand Extension concepts through Virgin case

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Brand Extension- Virgin

  1. 1. House OF Brands
  2. 2. Branded House
  3. 3. Improved Image • Consumers build perceptions • Likely to expect same performance Reduced Risk • Less perceived risk with a known brand family • Credibility through experience Higher Acceptance • Higher probability of trial and distribution • Brand Reputation a key selection criterion in supermarkets
  4. 4. Higher Promotional Efficiency • Ad-to-Sales ratio 10% for extension as compared to 19% for new Brand • Awareness of brand not required; efforts concentrate on product Packaging and labeling efficiencies • Create a billboard effect • Cost saved by using similar designs effectively Introductory and follow- up efforts reduced • Brands can save upto 30- 40% of launch cost • Association with multiple brands allows for less follow- up efforts
  5. 5. Increased Market • New customers in Brand Franchise • Diversified revenue sources Revitalized Brand • Extensions renew interest in a brand • Spillover Effects help mature products to earn more Easy Extensions • A Branded House philosophy helps in easy future extensions • Higher recognition and acceptance
  6. 6. • Suitability issues with related extensions • New extensions may not get shelf space Confused Customers • Only top-selling brands preferred • Might require additional shelf cost Retailer Resistance • Extension might prove to be a failure • Immediate effect on the parent brand Hurt Parent Brand Image
  7. 7. • The extension might be a success • Overlap of customers may lead to cannibalisation Cannibalize Parent Sales • The extension may be a success in a non-related industry • Might weaken the belongingness with original industry Diminish Identification • Premium image in one industry • The extension might be low end product and dilute brand Dilute Brand Meaning
  8. 8. Brand Extension with due diligence and thought-out action plan Failure due to over exploitation of brand extension
  9. 9. • Created by Shubham Vijay during Brand Management course under the guidance of Prof. Sameer Mathur (IIM Lucknow)

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