The document discusses brand extensions and line extensions as strategies for introducing new products. It defines line extensions as modifications within an existing product category, like new flavors, while brand extensions enter new categories. Extensions can reduce risks for new products by leveraging brand recognition. However, extensions must be differentiated from parent brands and satisfy consumers to avoid damaging the brand or creating competition. The document recommends that extensions have attributes relevant to target consumers, be positioned distinctly from parent brands, and deliver a proposition different than the parent brand. Whether an extension will succeed depends on properly executing these factors.

1. To extend or not… the dilemma A Presentation by Sani Malik

3. Opening thoughts… There’s too many products all doing the same thing from my favorite brand, which on do I choose?

5. Launching a new product is a risky endeavor because of the high costs of introduction and the low probability of success. One increasingly popular strategy for lowering the costs and improving the odds of success is to extend a well-known brand name to a new product

6. The use of existing brand names to launch new products involves at least two strategic options :- line and brand extensions

7. Line extensions occur when the original brand name is extended by modifying features (such as flavors, sizes, or varieties) within the existing product category (e.g., Diet Pepsi or Lucozade Boost Apple)

8. Brand extensions take place when the brand name is used to enter a completely different product category (e.g., Jagal detergent or Sterling computers).

9. extensions tend to reduce the risk associated with new product development because upon seeing the extension consumers immediately have an instant recognition of the brand name will be more likely to try it.

11. A classic example of an extension failure , was when a huge company like Coke Cola launched the “New Coke” in 1985, the extension immediately conflicted with consumer’s perception and not only did the extension not succeed but it resulted in a drop in sales and declining market share for the original Coke

12. However, if properly executed extensions can work, a typical example of this would be the 1982 launch of Coca-Cola’s Diet Coke, Indomie Noodles and Marlboro range of cigarettes

13. THINK….. BEFORE YOU EXTEND

17. RECOMMENDATIONS

18. Less alcohol Different Shape + Design Differentiation It is of paramount important that extensions are clearly and not ambiguously distinguished from their parent brand; differentiation should be based on attributes that are relevant and of perceived value to the target consumers, be it tangible or intangible. Smaller Bottle

19. Positioning The positioning of the extension should be clearly distinguished from that of its parent brand

20. Proposition + Promise Just as the position tells consumers what the extension represents amongst other brands within the same segment, the proposition will represent the kind of satisfaction the extension promises (different from that of the parent brand) after the consumer interacts with it

22. Thank You