The document discusses various strategies for brand extension, including sub-brands, line extensions, and category extensions, focusing on the implications for brand equity and market reach. It highlights the benefits of using established brands for new products, such as reduced risk and increased efficiency, while also noting potential risks like brand dilution and consumer confusion. The presentation emphasizes the importance of maintaining strong core brand associations and the challenges of navigating brand extensions across different market segments.

1. Leroy J. Ebert DipM MCIM,Chartered Marketer, MSLIM
Manager Marketing and Business Development – Logiwiz Ltd.
Presentation Developed as Course Material for the SLIM Diploma in Brand Management

3.  When a firm uses an established brand name to introduce a
new product

4.  Sub brand
 Parent Brand
 Family Brand

5.  Line Extension – Marketers may apply the parent brand to a
new product that targets a new market segment within a
product category the parent brand currently serves. A line
extension often adds a flavor, ingredient variety, different
size or different application
 Modifier brands

6.  Category Extension: Marketers apply the parent brand to
enter a different product category from the one it currently
serves

7.  Same product in different forms – Ex. AXE spray & Deo Roll on
 Companion Products – Ever ready batteries and torches of
Signal toothpaste and brushes or adidas shoes and apparels
 Same customer franchise – Ceylinco Life and CeylincoVIP,
Laugfs Service station and Fuel station, HSBC credit cards
and Lifestyle loans

8.  Expertise Brands – ex. Sony TV, to Hi Fi’s, to DVD players. I’m
sure that you will think twice In buying a Sony Car??????
 Unique benefits – extend brands to offer more benefits and
convenience ex. VIM dish wash liquid, soap, powder Or
Panadol syrup instead of tablets

9.  Distinctive taste, ingredient, of component – extend
based of a functional aspect ex. Herbal tooth paste,
Diet cola etc.

10.  Awareness – High awareness due to strength of original
brand
 Brand association – Sony is associated with quality and
innovative electronic equipment
 Quality association – adidas footwear to apparel
 Encourage quicker distribution and trial purpose –Vim powder
has worked so I shall try the liquid
 Reduce perceived risk
 Increase efficiency of promotional expenditure
 Avoid cost of developing a new brand
 Lower production costs – Raw materials, packaging etc
 Enhance the parent brands image
 Revitalize the brand
 Bring in new customers and increase market share

11.  No value added – If the core brand is not strong then the
extension might not succeed
 Negative association – Remember the example of the Sony
car
 Name confusion – Ex. Ceylinco, can you name all the
companies that had Ceylinco in it?
 Possible cannibalization – Vim liquid eating into the vim soap
market
 Retailers resistance – lack of shelf space
 Can fail and hurt the parent brand
 Can succeed but diminish identification with any one
category
 Can prevent a company from introducing a new brand : i.e.
Levis & Dockers, Disney &Touchstone films

12.  Brand extensions inevitably must add equity to the
parent brand
 How Salient parent brands associations are in the mind of
the consumer in the extension context
 How Favorable any inferred associations are in the
extension context
 How unique and inferred associations are in the extension
category, how are these associations compared to that of
competition

13.  Brands are extended up into more premium market
segments or down into more value conscious consumer
segments
 The logic is that the equity of the parent brand can be
transferred in either direction to appeal to consumers who
otherwise would not consider the parent brand
 Upward extension can improve brand image
 Vertical brand extension can confuse existing consumers as a
result have existing and potential customers reject the
parent brand

15.  Extending brand across multiple product categories

16. Content Extracted from “Strategic Brand Management” 3rd
Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand
Management Students
Presentation developed by Leroy J. Ebert (25th April 2014)