Brand extension product management


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Brand extension product management

  2. 2. Contents  Introduction and guidelines for brand extension  Need for brand extension  Pros and cons for brand extension  Brand Association  Types of brands
  3. 3. Introduction  Brand extension is a marketing strategy In which a marketer launches a new product with a well established or developed brand by using the same name  An existing brand that develop brand extension is known as a parent brand.
  4. 4. Guidelines for brand extension 1. Determine brand and category associations. The first step in determining brand relevance is to begin with a comprehensive assessment of what your brand and those of key competitors in the category currently stand for in the minds of customers, Through customer research, interview and focus groups.
  5. 5.  2. Develop brand extendibility proxies.  Once the six to eight key associations have been identified for the brand and category, proxies should be carefully chosen for each one.  To accomplish this, turn each association into a continuum of attributes and benefits that range from “close in” to “far out” relative to where customers perceive the brand to be today. This will provide the basis for rich conversations with customers as to how the brand can and cannot be extended in the future
  6. 6.  3. Conduct brand extendibility research.  Once brand and category associations have been determined and representative proxies selected, it is imperative to go back to customers to solicit their input.  A variety of stimuli can be used for the chosen proxies to facilitate brand extendibility research discussions, including white paper concepts, representative images, and actual products or prototype
  7. 7. 4. Create brand extendibility guidelines.  The final step of this approach is to take the insights obtained in the previous step’s customer research and develop guidelines detailing how the brand can and cannot be effectively extended.  Customer feedback needs to be interpreted and translated into guidelines for extendibility
  8. 8. Need for brand extension  The cost of establishing a new brand, especially in the international markets is enormous  A consumer is also more comfortable with a brand name as an indirect measure of quality  A brand can have better visibility by extending into more variants.  A core promise can be offered through the extensions  Whenever competition is intense, it become necessary to cover every segment
  9. 9. Advantages of brand extension  An established brand name for new products may reduce the risk of initial trial and will increase the probability of success  The cost of extension is less than cost of bringing new brands  Successful brand spent less on advertising than new name products  Brand extension provides a means of capitalizing brand equity  Extension assists in enhancing the image of core brand and gives a new product instant recognition
  10. 10. Disadvantage for brand Extension  Extension carry the risk of diluting what the brand name means to consumers, especially if it fails to meet customer expectations  If it fails it will dilute the company flagship and product carrying that brand that lead to reduction of sales  Failed extensions might diminish core brand s equity.  Inconsistency extensions carry the risk of diluting important consumer believes about the product  If brand extension is adopted continually in companies, it reduces the resources that are available for significant new product development
  11. 11. Brand associations  Brand associations are measurable benefits and attributes assigned to the brand by the consumers. For example physical product features, emotional attributes, values, behaviors and occasions associated with the use of a brand
  12. 12. Types of brand associations  Brand specific association: a brand is said to have specific association if it is unique and highly salient in its product category  Product category association: sometimes, over a period a brand might get associated with the product category in which it is operating rather than a particular attribute  Abstract associations: this are the brands that are build on generalized images
  13. 13. Types of Brand extension  Same product in a different form  Distinctive taste, ingredient component  An ingredient component is used to make a new item in a different category  Companion product  When some product are used with others  Expertise  Extension into area where consumers believe the that the original brand has connotations of special knowledge or experience.
  14. 14.  Unique benefit, tributes or features by the brand  Certain brands are identified through their uniqueness on a particular attributes which is extended into a related field  Designer image or status  Brand extension based on the image or status
  15. 15. THE END..