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Brand Extensions: Applying the Rules in a Digital World

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Brand extension rules include: aligning the perceived brand values in the new category; organisational capabilities for stretching and supporting the activity; growth potential for the brand / company.
Today, a new type of brand extension is becoming very common: extending into the digital sphere.
The presentation examines how brands successfully extend into digital, through the leverage of the brands' expertise / benefits / components / market / lifestyle etc.

Published in: Marketing
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Brand Extensions: Applying the Rules in a Digital World

  1. 1. Hamutal Schieber, Jan. 2016 Brand Extenstion
  2. 2. Agenda • Brand Extension – motivations, definitions, examples • Brand Extension & digital technology • Traditional + Digital extensions
  3. 3. Brand Extension Benefit Form Component Benefit Expertise Companion Customer base Lifestyle A successful Brand Extension, the David Aaker model
  4. 4. Mister Clean advanced detergent
  5. 5. Mister Clean advanced detergent
  6. 6. Carlsberg Masculinity cc: quinn.anya - https://www.flickr.com/photos/53326337@N00
  7. 7. Carlsberg Masculinity
  8. 8. Real-Estate: service
  9. 9. Real-Estate: service
  10. 10. Potential Benefits 1. Penetrating a new lucrative category 2. An aura effect for the original brand 3. Dealing with a changing market 4. Building loyalty 5. Targeting a new customer segment
  11. 11. Relevancy
  12. 12. Old Spice masculinity
  13. 13. Montblanc Extending to survive cc: Freimut - https://www.flickr.com/photos/9255261@N07
  14. 14. Targeting a new segment
  15. 15. Campbell's convenient nutrition
  16. 16. Brand Extension Types Same industry Adjacent category Same industry New category New industry
  17. 17. Then, Digital Happened Same industry Adjacent category Same industry New category New industry Same industry Same category New channel
  18. 18. The adaption of digital tools is, de-facto, a brand extension, and thus requires the same decision-making process as with any brand extension.
  19. 19. Traditional Brand Extension Rules Does the new category hold a significant growth/ positioning potential Can the company provide added value in the category? What are the brand values as perceived by the consumers in the specific market?
  20. 20. New Brand Extension Rules: from brand- centricity to consumer-centricity What new categories can we invent in order to help the consumer? What sort of technologies can we leverage in order to help the consumer? What is the brand’s most authentic and engaging story?
  21. 21. Honda powerful engines
  22. 22. Honda powerful engines
  23. 23. Honda changes the story to: Mobility
  24. 24. Mobility
  25. 25. Reebok Fitness
  26. 26. Reebok Fitness
  27. 27. Reebok Fitness + Digital
  28. 28. IBM Computing cc: crazytales562 - https://www.flickr.com/photos/73798453@N00
  29. 29. IBM Computing IT
  30. 30. IBM Computing-IT + Apple
  31. 31. Ziploc freshness
  32. 32. Ziploc freshness
  33. 33. Freshness – Potential spheres?
  34. 34. Crayola creativity
  35. 35. Crayola creativity
  36. 36. Crayola creativity – 3 D fashion modelling
  37. 37. Bud Light socializing cc: Ron,Ron,Ron - https://www.flickr.com/photos/22058765@N02
  38. 38. Bud Light socializing
  39. 39. Bud Light socializing
  40. 40. Nike: Just Do It
  41. 41. Just Do It - Wearables
  42. 42. Just Do It - App
  43. 43. Google cc: 53 mm photogRaphy - https://www.flickr.com/photos/33563560@N04
  44. 44. Browsers “Companion” cc: stshank - https://www.flickr.com/photos/33782207@N00
  45. 45. B2B
  46. 46. Autonomous Cars cc: MarkDoliner - https://www.flickr.com/photos/19714819@N00
  47. 47. Amazon cc: trekkyandy - https://www.flickr.com/photos/87054972@N00
  48. 48. Amazon Kindle cc: pamhule - https://www.flickr.com/photos/58571789@N00
  49. 49. Amazon Fresh cc: andynash - https://www.flickr.com/photos/94611718@N00
  50. 50. Amazon Dash
  51. 51. Starbucks cc: ЕленАндреа - https://www.flickr.com/photos/14901566@N07
  52. 52. RTDcc: Jacky W - https://www.flickr.com/photos/55005012@N00
  53. 53. Energy Drinks cc: JeepersMedia - https://www.flickr.com/photos/39160147@N03
  54. 54. Digital Payments
  55. 55. L'Oreal Skin specialty
  56. 56. L’Oreal – the Internet of Things
  57. 57. Airbnb - Belong
  58. 58. Uber Democratization
  59. 59. Uber Rush
  60. 60. Uber Eats
  61. 61. To Sum Up: In a digital world, brand extension is not optional: it is a must, which is inherent to the digital activity
  62. 62. Therefore, as with any brand extension, we must follow the rules: Relevancy – as perceived by the client; Capabilities – adapting the technology; And Added Value achieved through the new category.

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