it is how consumer evaluate brand

1. How Consumers Evaluate Brand
Extensions
• Virajsinh Mahida
• NMIMS Mumbai

2. Four managerial basic assumptions
• Some awareness and positive
associations about brand
• Some of these positive
associations must be evoked
by the brand extension
• Negative associations are not
transferred from the Parent
brand
• Negative associations are not
created by the brand extension

3. Brand Extensions and Brand Equity
Create extension equity
1.Salience-of parent brand
associations in extension
context
2.Favorability of any inferred
associations in the extension
context
3.Uniqueness of any inferred
associations compared with
competition for the
extension PODs and POPs
are important
Brand extensions success depend on its ability to -
Contribute to parent brand equity
1.How important the evidence is concerning
the corresponding benefit associated
2.How relevant or diagnostic the extension
evidence is concerning the attribute or
benefit for the parent brand.
3.How consistent the extension evidence is
with the corresponding parent brand
associations.
4.How strong existing attribute or benefit
associations are held in consumer memory for
the parent brand

4. Evaluating Brand Extension
Opportunities
1. Define actual and desired consumer
knowledge about parent brand
• The depth and breadth of awareness
• Strength, favourability and uniqueness of
associations
• Basis of positioning and core benefits satisfied
by the brand
2. Identify possible extension candidates
• Managerial brainstorming and consumer research
• Consumer factors - the product categories that
seem to fit the parent brand image and
associations like positioning and core benefits

5. Evaluating Brand Extension
Opportunities
3.Evaluate potential of extension candidates
through –
A) Consumer factors
• The 3 factors model of extension evaluations
• The 4 factor model of extension feedback effects
b) Corporate factors
• How relevant are existing marketing programs,
perceived benefits and target customers

6. Evaluating Brand Extension
Opportunities
• C) Competitive factors
• Extent of competitive advantage perceived by
consumers
• Possible reaction by competitors

7. Design Marketing Programs to Launch
Brand Extensions
Choose brand elements
1. Retain one or more elements from the existing brand
2. Adopt its own brand element to distinguish it from the
parent brand. Build its awareness and image
3. Strength of transfer from the parent
4. Guidelines for the new elements

8. Design Marketing Programs to Launch
Brand Extensions
Design optimal marketing programs
• Positioning
• Category extensions - focus more on
POP
• Line extensions –how new product
Relates to existing product
• Explain the relationship and difference
between parent brand and extension

9. Successful Extensions
• Create points-of-parity & points-of-difference
in the extension category
• Enhance points-of-parity & points-of-
difference of parent brand
• Maximize the advantages & minimize the
disadvantages of brand extensions