This document discusses brand extension strategies used by the Tata Group, a large Indian conglomerate. It defines brand extension as using an existing brand name to promote products in new categories. The Tata Group has successfully extended many of its brands, such as Tata Chemicals, Tata Motors, Tata Power, Tata Consultancy Services, and Tata Steel, into related industries. The document analyzes factors for successful brand extensions and concludes that extensions are most likely to succeed when the parent brand has a strong position and stands for general qualities that can translate to new product categories.

1. BRAND EXTENSION
PRESENTATION BY: TASNEEM VANAK, SANJANA BHARADWAJ

2. INTRODUCTION TO BRAND
The brand name is quite often used interchangeably with "brand“
In this context a "brand name" constitutes a type of trademark, if
the brand 2 name exclusively identifies the brand owner as the
commercial source of products or services
Identify not only a product but also its manufacturer or producer,
such as Apple, Coca Cola, IBM, Mercedes, Shell, Sony, Toyota
 A brand name may be used and protected as a trademark

3. IMPORTANCE OF BRAND
Delivers the message clearly
Confirms your credibility
Connects your target prospects
emotionally
Motivates the buyer
Concretes User Loyalty
A brand name is the indicator of the
attributes of the product.

4. BRAND EXTENSION
Brand extension is a marketing strategy in
which a firm marketing a product with a
well-developed image uses the same
brand name in a different product
category.
Brand extension is a marketing strategy in
which new products are introduced in
relation to a successful brand.
It increases awareness of the brand name
and increases profitability from offerings
in more than one product category.

5. TYPES OF BRAND
EXTENSION
LINE
EXTENSION
BRAND
EXTENSION

6. Line Extension Strategy
When a brand is used to brand a new product
that targets a new market segment within a
product category currently served by the
parent brand.
Examples:
• Coca-Cola diet
• Colgate for Kids

7. 1.5 litre0.5 litre1.2 litre5 litre

8. Brand Extension Strategy
Using an existing brand name to
promote a product in a different
category, is Brand Extension.
The key difference between line
and brand extension is the
product category.

10. Need of Brand Extension
In times of intense competition, to cover every niche, the best strategy available to companies
is to go for brand extension.
Customers use established brands as quality cues i.e. they use brand name as an indirect
measure of quality.
The benefit of “spill over of advertising” works for those products which are affiliated with the
brand.
Brand extension increases the visibility of brand.
Brand extension is helpful in catering lower or premium market segment.
When a company extends its brand name to another category, competitors react back; this
creates a dynamic environment in market.

11. BRAND
EXTENSION
RISK
INTERNAL
RISK
EXTERNAL
RISK

12. INTERNAL
RISK
POOR
MANUFACTU
RING
QUALITY
POOR CUSTOMER
SERVICE BECAUSE
OF DISGRUNTED
EMPLOYEES

13. EXTERNAL
RISK
Behaviour by consumers—boycotting the
products or services of the company due to
change in perception brought about either
by a change in the brand differentiator
communication or experience OR due to
changing social values
Retail space capturing, buying out of stocks,
removing stocks on display etc tactics by
competition
Political or community opposition to the
brand to do business within a geographical
region which limits its ability to develop.

14. FACTORS INFLUENCING THE SUCCESS OF
BRAND EXTENSIONS
The higher the perceived reputations of the parent brand, the more favourable should be
evaluations of the brand extensions
Extensions into categories perceived as more similar to the category of the parent brand are
more likely to be accepted compared to extensions into less similar product categories
The higher the perceived risk associated with the extension category, the more positive will be
evaluations of the brand extensions
Line extensions of strong brands are more successful than extensions of weak brands
 Line extensions of symbolic brands enjoy greater market success than those of less symbolic
brands
Line extensions that receive strong advertising and promotional support are more successful
than those extensions that receive meagre support

15. Brand extension- advantages
It makes acceptance of new product easy.
It increases brand image.
The risk perceived by the customers reduces.
The efficiency of promotional expenditure
increases.
Advertising,
selling and promotional costs are reduced.
Cost of developing new brand is saved.
Consumers can now seek for a variety.
The expense of introductory and follow up
marketing programs is reduced.

16. Brand extension- advantages (contd..)
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.

17. Brand extension- disadvantages
Brand extension in unrelated markets may lead to loss of reliability if a brand
name is extended too far.
There is a risk that the new product may generate implications that damage
the image of the core/original brand.
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.
If the brand extensions have no advantage over competitive brands in the new
category, then it will fail.

18. TATA GROUP PROFILE
The Tata Group is one of India's largest and most respected business conglomerates,
with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about
2.8 per cent of the country's GDP, and a market capitalization of $55.1 billion.
The Tata Group has operations in more than 54 countries across six continents, and its
companies export products and services to 120 nations.
Tata companies together employ some 2,46,000 people.
The Group's 28 publicly listed enterprises — among them stand out names such as Tata
Steel, Tata Consultancy Services, Tata Motors, Tata food and beverages, Tata Energy,
etc. — have a combined market capitalization that is the highest among Indian business
houses in the private sector, and a shareholder base of over 2 million.
The Tata family of companies shares a set of five core values: integrity, understanding,
excellence, unity and responsibility.

19. MISSION AND VISION
At the Tata Group their purpose is To improve the quality of
life of the communities they serve.
They do this through leadership in sectors of national economic
significance, to which the Group brings a unique set of capabilities.
This requires them to grow aggressively in focused areas of
business.
Their heritage of returning to society what they earn evokes trust
among consumers, employees, shareholders and the community.
The Tata name is a unique asset representing leadership with trust.

20. BRAND EXTENSION OF TATA GROUP

21. TATA
CHEMI
CALS

22. TATA products and
Beverages

23. TATAPOWER
In 1910, the first of the three Tata Electric
Companies, The Tata Hydro-Electric
Power Supply Company, (now Tata Power)
was set up.
The core business of the company is to
generate, transmit and distribute electricity.
With an installed electricity generation
capacity of about 8560 MW, it is India's
second largest private power producer.

24. TATAENGINEERING
 Tata Engineering and
Locomotive Company
(renamed Tata Motors in
2003) is established to
manufacture locomotive and
engineering products.
 Voltas, a standout
engineering enterprise in the
Tata family, manufactures
top-notch air-conditioning
and refrigeration products
for homes

25. TATA Information and
Communication
Tata Teleservices and VSNL, through their common brand Tata Indicom, offer a
complete range of telecom solutions for business needs. Tata Indicom is the
world leader in fixed wireless services.

26. TATA
SERVICES

27. TATA STEELS
Tata Steel acquires Singapore-
based steel company NatSteel by
subscribing to 100 per cent
equity of its subsidiary, NatSteel
Asia .
Tata Steel acquired the UK-
based steel maker Corus which
was the largest international
acquisition by an Indian company
till that date.

28. TATA CORE SCIENCES
The Tata Institute of Fundamental Research (TIFR) is a research
institution in Bombay, India, dedicated to basic research in
mathematics and the sciences. It is a Deemed University and works
under the umbrella of the Department of Atomic Energy of the
Government of India.
TIFR conducts research primarily in the natural sciences,
mathematics, the biological sciences and theoretical computer science
and is considered to be one among India's outstanding research
centres

29. CONCLUSION
Brand extensions have been around for as long as brands
themselves.
There are just a few key requirements for successful brand extension
into other areas — related or unrelated. The first is that the brand
should have a strong position in its original space. A brand that is
weak in its original space cannot normally be expected to succeed
when extended into another area.
The second is the qualities the brand stands for. A brand needs to
stand for slightly “general” qualities if it is to be extended
successfully.