Muhammad ZubairZaid Iftikhar
Abubakar SarwarShahjahan Jahangir
Topic
Brand ExtensionOf
Unilever
Brand Extension
Brand extension involve using the name of existing brand to introduce the new
product category.
Brand extension is a popular Branding strategy to enter in the new product category.
Brand extension strategy is advantageous because it reduce the cost of new product introduction and enhanced the probability of new product.
Brand extensions are one of the most heavily-researched and influential areas in marketing.
Brand extension directly related with Parent Brand.
Brand Extension Process Major Brand Extension Strategy Decisions:
Product Brand Brand Equity
Brand Positioning
Brand Development
Brand Extension
Name Selection
Success/Failure of Extension
Sponsor-ship
Advertise-ment
Product Commodity offer for sale.
Non familiar goods or services.
Something that has been created by someone or some process.
The set of elements common to two or more sets
Brand Familiar product
Brand is the name, term, sign, symbol, design and combination of them or other characteristic that identify the product and distinguished it from other.
Brand could be tangible and intangible.
To maintain competitive advantages two thing are important.SustainChange
Product Brand
Brand vs Product Companies Make Products and Consumers Make Brands
Products Can Be Copied and Replaced but Brands Are Unique
Products Can Become Obsolete but Brands Can Be Timeless
Products Are Instantly Meaningful but Brands Become Meaningful over Time
Brand has different type of association as compare to the product.
Brand Equity
A measure of the brand’s ability to capture consumer preference
and loyalty.
The difference between the market value of a Product and the
claims held against it.
Brand PositioningThe act of designing the company’s offering and image in such a way that it occupies a distinctive place in the minds of customers.”
A brand can be positioned on the basis of:
Product attributesBenefitsBeliefs and values
Brand Development Strategies
LineExtension
Brand Extension
Multi-brands
New Brands
Product category
Existing New
Bra
nd N
ame
Existing
New
NewNew BrandsBrands
New brand name New product categoryExample:Unilever introduced a new product category for Laundry with a new brand name of Comfort.
Multi-brandsMulti-brands New brand name Existing product categoryExample:
Unilever has multi-brands in the same product category of shampoosSuch as Dove, Sunsilk, Lux etc.
Line ExtensionLine Extension Existing brand name Existing product category
Example:
Fair & Lovely Facewash has different range of facewash for different people. This strategy is called line extension.
Brand ExtensionBrand Extension Existing brand name New product categoryExample:
Knorr have extend their brand by adding a new product category of knorr rolls and wrap mix powder.
Brand Extension
Brand Extension also called Brand Stretching 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. The new product is called a spin-off.
A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals
In the 1990s, 81% of new products used brand extension to introduce new brands.
In the 2009s, 90% of new products used brand extension to introduce new brands.
Advantages Cost reduction in introduce new brand
Customer are familiar with the parent brand name.
Low risk strategy to introduce the new product
Probability of success are higher
Increase Profitability
Disadvantages Higher the risk to dilute the Parent Brand image
Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity
The failures of brand extension are at higher rate than the successes
Negative association and wrong communication strategy do harm to the parent brand even brand family.
Name Selection The brand name is a very important brand element, and may heavily influence the way a brand perform.
Brand Names are the key Brand Equity generators because they affect recall and recognition,
Selecting a brand name is crucial part of branding
Full name brand extension. Derived name brand extension.
For Example Fair&Lovely
BrandBrand SponsorshipSponsorship
Parent Brand adopt Sponsorship way to provide the Financial resources to make Brand Extension in best form.
2 Sponsorship Options:
National brand
Co-brand product
NationalNational BrandBrand
“A brand sold out under its own unique brand name.”
Example:(Sunsilk)
Co-brandingCo-branding “Using the established brand names of two different companies on the same
product.”
Example:Unilever and Rafhan co-branding
AdvertisementAdvertisement With the Brand Extension, parent company need to create the
awareness among the customers.
companies may apply different communication strategies to increase perceived fit and, consequently, consumer acceptance.
The best communication strategy is “Advertisement”.
AppealsAppeals There are two common appeals use in the Advertisement
Informational Advertisement Appeals
Transformational or emotional advertising appeals
InformationalInformational Informational advertising provides strictly information about the advertised product
and/or brand. This appeal shows the perceived fit between parent brand and new brand name.
Dens. N & Patrick De (2010). Attitudes toward the extension and parent brand in response to extension advertising: Journal of Business Research
TransformationalTransformational oror emotionalemotional Transformational appeals typically contain less information but picture positive sensorial,
social, or emotional aspects of one's experience with the focal item being promoted.
Success & Failure of Extension BrandSuccess & Failure of Extension Brand Success and Failure of Brand Extension base on the application of
all these strategies. If Parent company able to apply these in successful way then extension been successful and vice versa.
According to the survey 90% new product in the in the market are in the result of Brand Extension. More then 50% are fail due to the bad strategy application.
Lipton Yellow Label Tea
Lipton in Pakistan
Lipton Alps mint and Eucalyptus
Forest Fruit
Red Fruit
Caramel Tea
Ice Tea
Black Kiss
Peppermint
Herbal Tea
Green Tea Intense Mint
Tea & Honey
Infusion Chamomile
Blue fruits
Decaffeinated
Lemon & Ginger
Chamomile
Finest Earl Grey
Rooibos
English Breakfast
And Others
Lipton’s other extensions
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