complete slide about brand extension for brand managers

1. Presented by:
*Ammar AL-gassuss
*Said Fakhri *Nueullah Özbek
*Mohammad Mouen
*Mohammad Karimi
ISTANBUL AYDIN
UNIVERSITY

2. HEAD LINES
-What is Brand Extension?
-Successes Brand Extensions
-Brand Extensions Failures
-Bros and Cons of Brand Extensions
-Examples of Brand Extensions

3. What is Brand Extension?
• Brand extension is the marketing strategy wherein a new product is
launched under the existing brand name.
• Product can be very different, only the brand is the same.
• some influences of brand extension:
 Customer will recognize the brand name, when they see the new product.
 Brands can make profited in the different department.
 Sales can increase.
 It also can be as an awareness to the brand by promoting new products.
 As an example: different kind of JACK DANELS foods and JACK DANELS Vicky
• Brand line
When on already existing brand comes out with a new product in the same category.
The similar product already existed.
The new products can be very similar to the old ones
In considering the line extensions, when product comes we have:
New flavors
Different form of the products.
New coolers.
Different sizes.

4. Influences of line extensions
• Give customers more optional to choose
• There is more verities of the existing product
• It can increase the profits, because new
products are being promoted
• The brand gains are more recognition, since
the new products are more released

5. Successes Brand Extensions

6. Successes Brand Extensions

7. Brand extension failures
 Brand owners violate psycho
sensory branding principles

8. Brand extension failures
 Over extension

9. Brand extension failures
 don’t bring enough meaningful value to
the consumers

10. Brand extension failures
lack of relevance

11. Pros and Cons of Brand Extensions
Brand Extension has following advantages:
1 - It makes acceptance of new product easy.
*It increases brand image.
*The risk perceived by the customers reduces.
*The likelihood of gaining distribution and trial increases. An established brand name increases -----consumer
interest and willingness to try new product having the established brand name.
*The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are
reduced. There are economies of scale as advertising for core brand and its extension reinforces each other.
*Cost of developing new brand is saved.
*Consumers can now seek for a variety.
*There are packaging and labeling efficiencies.
*The expense of introductory and follow up marketing programs is reduced.
2- There are feedback benefits to the parent brand and the organization.
*The image of parent brand is enhanced.
*It revives the brand.
*It allows subsequent extension.
*Brand meaning is clarified.
*It increases market coverage as it brings new customers into brand franchise.
*Customers associate original/core brand to new product, hence they also have quality associations.

12. Pros and Cons of Brand Extensions
Disadvantages of Brand Extension
1-Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far.
An organization must research the product categories in which the established brand name will work.
2-There is a risk that the new product may generate implications that damage the image of the
core/original brand.
3-There are chances of less awareness and trial because the management may not provide enough
investment for the introduction of new product assuming that the spin-off effects from the original brand
name will compensate.
4-If the brand extensions have no advantage over competitive brands in the new category, then it will fail.

13. Examples of Brand Extensions
• History of the creation of branded company
“ALOKOZAY Group of Companies” (AGC)
began in 2003 with branching out into the tea
market in Jebel Ali (United Arab Emirates,
Dubai).
• Today the company consists of more than 30
offices located in Europe, Asia and Africa.

14. Examples of Brand Extensions
Over the course of time the company has introduced new products to the
companiy’s product portfolio under Alokozay own brand and is growing
rapidly. From the highly successful Alokozay Tea to the Engine Oil and
many more premium products.
Line Extension

15. Examples of Brand Extensions
Brand Extension

16. Examples of Brand Extensions
•As time progresses the company has even introduced
different services under the company’s brand
Logistics and
Distribution
Alokozay Group has developed
the big and comprehensive
distribution networks with its
own offices.
Each operation is complete
With its own full-fledged
equipments, distribution,
logistics, and warehousing
facilities.

17. Finally
We hope that you Get Benefit
Thank you
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