My Brand Final Ppt

8/3/2019 My Brand Final Ppt

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PRESENTATION

ONGROWTH OF BRANDS /EXTENSION

OF BRANDS

Presented by :-SANJEEV PANDEY

DEO KUMAR


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Brand extension

It is a marketing strategy in which a companymarketing a product with a well-developed imageuses the same brand name in a various product

category.Brands use this as a strategy to increase andleverage equity.

Ex: Tesco is extending its Finest brand into the home ware

market and other non-food products such as crockery, cutlery,cotton bed linen and towels, gifts, vases and glassware.


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Brand Extensions: How does a firm grow?

A firm can:

Focus on current products and markets

Market penetration strategy

Put existing products into new markets

Market development strategy

Put new products into existing markets

Product development strategy

Put new products into new markets

Diversification strategy


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Some Terminology

Brand Extension - A firm uses an establishedBrand name to introduce a new product Harley-Davidson clothing

Sub-Brand - A new Brand is combined with anexisting Brand Nestle Kit Kat, Cadbury Dairy Milk, Sony PlayStation

Parent Brand The pre-existing Brand that

gives birth to the sub-Brand Family Brand Parent Brand of multiple

extensions


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Categories of Brand Extensions

Line extension

Parent brand is used to brand a new product thattargets a new market segment within a product

category currently served by the parent brand H&S dry scalp shampoo

Category extension

Parent brand is used to enter a different product

category from that currently served by the parentbrand

Swiss army watches, Porsche bicycles


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Advantages of Extensions

Extensions can potentially provide the following

benefits to facilitate new product acceptance:

Facilitate new product acceptance

Improve brand image Increase efficiency of promotional expenditures

Avoid cost (and risk) of developing new names

Allow for packaging and labeling efficiencies

Variety-seeking

Provide feedback benefits to the parent brand


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Continued

Revitalize the brand

Bring new customers into brand franchise & increase market

coverage

Clarify the brand meaning Enhance the parent brand image

Improve strength, favorability, and uniqueness of brand

associations

Improve perceptions of company credibility


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Disadvantages of Extensions

Brand extension in unrelated markets may lead to loss of

reliability if a brand name is extended too far. An organization

must research the product categories in which the established

brand name will work.

There is a risk that the new product may generate implications

that damage the image of the core/original brand.


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Continued. 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.


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Brand Extension Assumptions

In introducing a brand extension, it is typicallyassumed that:

Consumers have some awareness of and positive

associations about the brand in memory Some of these positive associations are evoked by

the brand extension

Negative associations are not transferred from the

parent brand Negative associations are not created by the brand

extension


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Some examples of Extension Failures

Kellogg's Breakfast Mates

The idea behind Kellogg's Breakfast Mates was fairlysimple -- pack a box of cereal with milk and a spoon, and

you have a tasty meal on the go! Hey, it worked forLunchables, right? Unfortunately, Kellogg's failed to taketwo things into account. First of all, though the milkincluded in the Cereal Mate did not require refrigeration, noone likes the idea of warm milk. And second, the ads

showed parents sleeping while children helped themselvesto Cereal Mates -- but the packaging was not child-friendly.The confusion associated with Breakfast Mates led to itsultimate failure.


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ContinuedDeLorean Car

Auto pioneer John DeLorean quit General Motors in 1973 to starthis own company. His company's car was an unusual car featuringan unpainted, stainless-steel exterior and gull-wing doors. The cardebuted in 1981, but when the company failed less than two yearslater it had produced fewer than 9,000 vehicles.

Despite horrific sales, the car gained a cult following after the

release of the 1985 movie 'Back to the Future' which featured the caras a time-travel machine. Last year it was announced that the carwould be returning with very limited production.


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My Brand Final Ppt

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