Brand Extensions
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Transcript of Brand Extensions
Brand Extension
Presented by:
Sana HaqSana Iqbal
Waqas AhmadRaheem Tejani
Nadia Azher Khan Mohd. Salman Jamil
Brand ExtensionsOne of the most controversial areas of product concepts is the brand extension. A new product gets to share the name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout from the established product, but these fears proved groundless.Today brand extensions occur not only within the company, but companies are licensing their brand names to all kinds of products in the hope of increasing brand awareness.
What is Brand Extension ?
Lets here what brand managers say about it !!!!
Tazeen Kaazi Asst. Brand Tazeen Kaazi Asst. Brand Mgr Energile and Rafhan Best Mgr Energile and Rafhan Best
FoodsFoods
Amir Habib Brand Manager Tapal
Faizan Jamal Asst. Marketing Manager UBL
Brand ExtensionsBrand positioning as the key to Brand Extension
• Extending your Target Market: Gillette’s Sensor for women
• Extending the Definition of your Business: IBM Consulting, ‘Technology’ ‘Technology Based Solutions’
• Extending your Point of Difference: Haleeb’s thick milk, now in plastic bottles’
• Extending the Entire Positioning: Caterpillar’s venture into Footwear
Brand ExtensionsKey Brand Extension Questions
• Consistency with Brand Vision?• Uphold and strengthen Brand Picture?• Consistency with overall Positioning?• Extension failure may cause major or minor setback
for the parent brand?
Brand ExtensionsHow to pick the Right Brand Extensions:
A 4 Step Process
• Step 1: Develop the Brand Extension Strategy
• Step 2: Explore the Problem and Opportunity Areas
• Step 3: Generate Brand Based New Product Ideas
• Step 4: Develop Brand-Based Concepts and conduct Business Analysis
Brand ExtensionsWhy Extend the Brand?
• To be in tune with the developments in user habits and practices
• Cost of Advertising• Defending a brand at risk in a Basic Market• Access to Accumulated Image Capital, Brand
Survival, avoid obsolescence• Reinforcement of the Image Capital
Brand ExtensionsEvaluation of Extension
• Perceived typicality of the extension• Perceived fit with the brand• Credibility of the brand extension• Perceived added value of the extension
Brand ExtensionsInfluence of Extension on the Brand and its Capital
• some extensions take advantage • some destroy the capital• some have a neutral effect• some influence the meaning of the brand e.g. Tefal
modernized itself by going into technology• some regenerate, revive the brand and re-express its
base values in a new and stronger manner• some are just there to defend the brand
Brand ExtensionsStress on the brand through extensions
1.Type of the brand and ability to extend
A B C D E
Values
Interest
Know How
Formula
Product
Degree of Dissimilarity
Type of Brand
Brand ExtensionsStress on the brand through extensions
2.Under and over exploitation of a brand capital
A B E
Values
Interest
Know How
Formula
Product
Degree of Dissimilarity
Type of Brand
Y
X
Brand ExtensionsStress on the brand through extensions
All purpose cream, round blue
Nivea
Nivea showergelDeodorant
Shampoo
N’Soft
N’Sun
N’ Beaute
N’Baby
N’Vital
3.Perimeters of the brand extension using Nivea’s example
Brand ExtensionsRemote & Close Extensions
• Close: when extension is close to the core value • Remote: when extension is close to the core value
Naming a brand
• If close to the core, Should NOT receive a new brand name
• When remote, Should BE helped by a specific or sub brand name
Brand ExtensionsFew Classical errors
• Restricted vision of the Brand e.g. H&S• Keeping the Brand Locked up e.g. Nivea went beyond the blue circle
casing• When the Past determines the future e.g. New Lifebuoy • Harmful extensions e.g. Lipton’s failure in Soups affected the brand name• Opportunism and identity incoherence e.g. teen magazine prints articles
for working females • Prototypical brands e.g. Coca Cola enjoys excellent reputation but will not
use this capital for new products for the fear of losing its legitimacy• Trap of Mundane Products: No qualitative difference e.g. Lux goes into
pencils!• Case of Luxury goods: Licenses and accessories, e.g. Chanel T-shirt
being worn by people with non-Chanel look!• Complementary is not guarantee, e.g. Campbell failed miserably in
spaghetti sauces
Brand Relationship Spectrum
Branded House
• No brands, Company is the only Brand
• All the products are referenced by the company name
• E.g. Khaadi
Branded House - KHAADI
Khaadi As A Branded House
Imran Khan – Marketing Manager Khaadi
Khaadi moving towards Sub Branding
The Brand name has become so strong that it is crossing
International Boundaries…
Dettol – Branded House
Saira Munir Asst. Brand Manager
Dettol
Dettol was able to line extend because …
• Used NPD’s to discover new ideas
• Extension to the soap category was easy
• The core USP remained the same – antibacterial
• High equity value of dettol
Moving from Harsh antibacterial Moisturizing
• Maintaining core USP but adding a feature
Introducing Sensitive
•Focus on skin care more than germicidal
•To capture changing market needs
Perhaps Confused Positioning …
Ponds- Branded House
Sabeen Fazle Brand Manager Ponds
Ponds Brand Extension
• Started off with creams• The evolution of skin care market gave them an
opportunity to stretch into:– Talcum powder– Lotion– Face wash – Black head remover strips
All in line with USP- skin care
• Fair and Lovely could not so easily extend the brand
Extensions
• Lotion – greatest potential with 15-20% growth
• Face wash – 40% penetration
• Talcum Powder- high growth because of climate
• Black head removing strips
Ponds fair and young …Sub brand?
A whole new category of age
management and fairness gave
rise to the need of a proper brand
name
Brand Relationship Spectrum
Sub-Branding
Endorser is much stronger and drives and dominates the
sub-brand
Faizan Jamal Asst. Marketing Manger UBL
Why UBL has extended
• Brand Equity has FOUR pillars– Awareness– Perceived Quality– Differentiation– Loyalty
• Sub Branding was easy because of High brand awareness
• UBL Wallet, Drive, Address, Cashline• Future- endorsed brand
Advantage of House of Brands
Brand gets multiple engines to build its profitability and value
Dettol Water Pure
Rania Brand Manager Veet & Dettol Water Pure
Why Extend Dettol? Under the
Reckitt Benkiser Corporate name
•As a choice for a mass market product dettol was the best option for Reckitt
•Water purifier made the most sense in a Pakistani market
Dettol Water Pure…Sub or Endorsed?
• P&G gained first mover advantage-category became known as “PURE”
• People asked for “TABLETS”- DETTOL
• So what’s the conclusion?...
Brand Relationship Spectrum
Endorsed Branding
•Brand is stronger than the Parent brand, but the link remains
•Customer Acknowledges the brand irrespective of the endorser
TAPAL
•Danedar and Family mixture are SUB
•Chenak & Mezbaan are Endorsed
Why Endorsed Branding
• E.g. on tobacco Indus
• Flexibility in repositioning
• Adverse effect of corporate name
Why Endorsed Branding
Walls
• Innovative and strong brand name BUT . . .
- Endorsed Brand
Mona Hussain Brand Manager Walls
NOW… Sub-brand
• Give WALLS much more mileage• 30% outdoors go to Walls• Limited budget• Drive the consumer to the WHOLE
cabinet rather than a specific brand• Easier to support range than a brand
Walls- Sub Brand
So in conclusion
Brand Relationship Spectrum
House of Brands
No link to the parent brand
House of brands
• P&G believes in the classic concept of branding i.e.
1 brand = 1 product = 1 promise
Shadow brands
Amjad Ali Asst. Brand Manager
Braun, Duracell, & Oral B Gillette Pakistan Ltd.
Why Shadow branding?
• A brand that can stand on its own
• Different persona, markets, values
• Gillette essence cannot fit into these individual brands
Sun Sip- Shadow Brand
• Hilal sweets launched into the powder drink category under the name Sunsip
• The 3 drinks being Limo Pani, Thunda Orange and lastly the Body Charger.
• Limo Pani was tremendously successful
Shadow branding; Very low awareness of Sunsip
The later brands Thunda Orange and Body Charger very much relied on the
image capital built by Limo Pani.
Brand Relationship SpectrumCo-Branding
•When Two independent brands are sold together to reach new territories,
•Generate more value for the customer and hence reap maximum profits.
Co Branding
Tazeen Kaazi Asst. Brand Manager
Energile and Rafhan Best Foods
Co Branding• Brand is to give convenience• One product satisfying more than one
need• Knorr- Fair & Lovely
– Same market- mother is the customer– Co branding gives price discount which
attracts consumer
• Creativity in combining products– LIPTON tea party
Brand Extensions
Limitations
• Must realize the opportunity cost of the brand that was NOT created!
• Could have allowed better coverage• Deeper penetration of the new, young and emergent
markets• Could have attained more growth
QUESTIONS ????