Brand Extension

Contd.
It means extending brand name to more products or introduce new products.

When the firm introduces new products, it has got 3 main choices to brand it: Develop new brand, individually chosen for the new product

Can apply, in some way, one of its existing brands

Can use combination of new with existing brands.

Reasons for Brand Extension

Helps in making Brand into super brand in the mind of consumers. Less expenditure in launching new brands. Leads to benefits of premium brands Helps in leveraging strength of existing brand to new addition. Helps in acquiring instant recognition.

Classification
1. Line Extension Most of the new products (80%- 90%) are line extensions. Parent brand is used to brand new products that target new market segment within product category currently served by parent brand. It involves different flavor, ingredients, variety, different form or size, different applications. For e.g. clinic plus shampoo for dry, normal hair, anti-dandruff shampoo etc. Advantages: 1. Provides convenient route for increasing new values into an ongoing brand in existing market. 2. Changing customer taste can be accommodated through line extension. 3. Helps strengthen brand power and keep brand alive.

2. Category Extension Parent Brand is used to enter different product category from that currently served by parent brand. E.g. Ponds cold cream, face wash, sandal talc etc.

3. Image related extension: Brand name is extended across completely new and unrelated products falling under altogether different category. E.g. Ralph Lauren T-shirts, watches. Colgate toothbrush to toothpaste.

 Extension can dilute brand meaning.