Brand extension mite
This document discusses brand extension, which is using an existing brand name to promote a new product in a different category. The key difference between a line extension and a brand extension is that a line extension keeps the product category constant, while a brand extension varies the product category. Some advantages of brand extensions include leveraging existing brand equity, increasing awareness of the brand name, boosting profits through multiple product categories, and reducing costs compared to new brand launches. However, brand extensions also carry risks such as damaging the parent brand image if the extension fails or cannibalizing sales of the original product. Appropriate conditions for brand extensions include having strong prior brand equity and a perceived connection between the extension and parent brand.
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Brand extension mite
- 1. MODULE-6 BRAND EXTENSION
- 4. Major Brand Decisions Brand Strategy Line Extensions Brand Extensions Multi-brands New Brands Brand Sponsor Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Name Selection Selection Protection
- 5. Brand Strategy Line Extension Multibrands Brand Extension New Brands Brand Name Existing New Product Category Existing New
- 29. Evaluating Brand Extension Opportunities Define actual & desired consumer knowledge Identify possible extension candidates Evaluate potential of the extension candidate Evaluate potential candidate feedback effects Consider possible competitive advantages & reactions Design marketing campaign Evaluate extension success & effects on parent brand equity
Editor's Notes
- Major Branding Decisions This CTR corresponds to Figure 8-3 on p. 247 and relates to the material on pp. 247-252. Major Branding Decisions Brand Decision. At this stage, the company must decide whether or not to place a brand name on its product. Brands usually command higher profit margins than non-brands. Brand Name Selection . Desirable qualities for a brand name include: 1. It should suggest something about the product’s benefits. 2. It should be easy to pronounce and remember. 3. It should be distinctive. 4. It should translate easily into foreign languages. 5. It should be eligible for registration and legal protection. Brand Sponsor. Who sponsors the brand must also be decided. Manufacturer's or National brands are owned by the producer. Private brands are created and owned by a reseller. Mixed-brand strategies combine both approaches. Brand Strategy . This decision area consists of at least four choices, covered in greater detail on the following CTR.
- Brand Strategy This CTR corresponds to Figure 8-4 on p. 251 and relates to the discussion on pp. 250-252. Brand Strategy Companies may implement at least four brand-name strategies, including: Line Extension. This strategy occurs when a company introduces additional items in a given product category under the same brand name. The vast majority of new product introductions are line extensions. Brand Extension. This strategy seeks to extend existing brand qualities to launch new products or modified products in a new category. Multibrand. This strategy develops two or more products in the same product category. P & G pioneered multibranding. New Brands . Here a company creates a new brand name when it enters a new product category for which none of the company’s current brand names are appropriate.