Line & Brand Extensions | Brand | Retail

LINE & BRAND EXTENSIONS

LINE EXTENSIONS
 The product line is now far more representative of customers’ varying quantity needs.  It suggests the presence of usage segmentation.  Customers differs in terms of their usage quantities.  The brand has to fill the whole spectrum with products as per the needs of various segments.

Example
 Bisleri is the pioneering brand in the mineral water category.  Originally, Bisleri used to come in a one litre bottle.  But recently, Bisleri has exhibited a spate of innovations.  The brand launched bottles of different sizes and quantities.  The Bisleri portfolio now includes one litre, 1.2 litre, 1.5 litre and 5 litre bottles.

Line Extension strategies
Bisleri 1.1 ltr

Product Sizes

Bisleri .5 ltr

Bisleri 1.2 ltr

Bisleri 1.5 ltr

Bisleri 5 ltr

etc Ingredient Colgate gel Colgate Herbal Colgate Salt etc. Flavours Rasna Orange Rasna Mango Rasa Rose ... .Colour Pantene White Pantene Black Pantene Pink Etc.

Form Vim Bar Vim Liquid Vim Powder .

Chairman and Managing Director.  We have enhanced our offerings under all our apparel brands to provide a complete wardrobe solution.  We believe that venturing into exclusive stores for our apparel brands will make our brands stronger and give the right impetus to our growth plans." . According to Gautam Singhania. Raymond India: "Raymond aims to acquire a dominant position in the apparel sector in the country.

relaxed work wear. . evening wear. travel wear as well as sportswear. have different categories to cater to this need.  Thus. President.formalwear. "Men today want different solutions for different occasions . Raymond Apparel.  Our brands Park Avenue." says Shreyas Joshi. all our brands offer a solution to changing men's fashion needs at different price points. Parx and Manzoni. traditional wear. club wear.

Why Line Extensions?  In most of the product categories including fast moving consumer goods. . consumer durables and services.  The firms seem to seek growth more vigorously. line extension has been the name of the game.  It is an expansionist move.

         Nine prominent reasons……… Customer Segmentation Customer need for variety Pricing Breadth Capacity Utilization Quick gains Competitive Reasons Trade Demands Counter Competition Image Benefits .

Marketers sometimes add products to their line without sound logic and reasoning. .  Line Confusion .Line Extension Risks  There are several dangers associated with line extensions. This may confuse the customers and the retailers and will affect the brand’s owner company in the long run. without any clear role and goal.

Line Extension Risks…  Encourage Variety seeking – Brand loyalty is every marketers dream. customers practice and become the habitant of variety seeking. . The loyalty is thus weakened. By line extension. Hence it influence brand switching behaviours.

. But the lure of extension seems to be so strong that the ideas are brought into the market as line extensions. This implies loss of a winning asset in the long-term.Line Extension Risks…  Success Myopia – An idea may be a grand enough to be converted into a full-fledged independent brand.

The pressure appears to be applied more intensely at the retail level. it brings confusion and chaos.Line Extension Risks…  Strained relations When the lines expand. . But at the retailers end.  The result is the strained relations between the marketer and the retailer. The marketers seek adequate shelf space. marketers tend to pressurize their trade partners such as wholesalers and retailers to carry the complete line in accordance with their wishes. promotion and information.

 This is the reason why line extensions do not create mega successes. .  What appears to be logical to the managers performing these adventures tends to be illogical in the perception of customers.Line Extension Trap  Why do firms jump on to line extension bandwagon?  When customers prefer a brand. they would be just as willing to buy a different product carrying the same name.

 This is a great mistake.  Line extensions do not work because they tend to go against the fundamental aspect of positioning.Line Extension Trap…….  It is a fallacy that a brand is just a name that can be put on any product. It undermines and destroys the brand in a prospect’s mind.  The core brand holds a strong position inside the prospect’s mind.  Line extensions tend to educate customers that product and brand are two different things. .

. Category remains constant whereas in brand extensions product category is a variable.  In line extension the pdt.BRAND EXTENSIONS  Using an existing brand name to promote a product in a different category. is Brand Extension.  The key difference between line and brand extension is the product category.

Toilet soap Shampoo. Perfumes. Computer monitors. Refridgerators. Tooth paste. Shaving cream. Washing Machines & Mobile phones. Talc & Face wash.  LG – Television. Air Conditioners. Soap & Razar. Moisturising lotion. Microwaves. Belts. Jeans. .EXAMPLE  Ponds Cold cream.  Park Avenue – Shirts.

Why Brand Extension?      Cost of New launches Promotional Efficiency Consumer Benefits Feedback effects Returns .

 Example:  Amul milk  Real Juices Amul Condensed milk Real Juice Concentrate . but if a different product form constitutes an entirely different product category.Types of Extensions  Product form extension – A product launched in a different form usually means line extension.

Types of Extensions  Companion Product – The idea here is to capitalise 0n product complementarity. The consumer may view both the products jointly.  Example : Colgate Dental Cream Gillette Razors Gillette Shave forms Colgate Tooth Brush Gillette After Shave .

Customer Franchise  A marketer may extend a product range in order to meet the needs of a specific customer group. J&J Baby Talc J&J Baby Oil J&J Baby Cream J&J Baby Shampoo J&J Baby Diapers .

Company Expertise  Brand Extensions often come in the forms of different product category introductions using a common name but emanating from a common expertise pool. Honda scooters Honda Lawn movers Honda Cars . This strategy is particularly seen in Japanese companies.

the brand owner. Parachute may have expertise of ‘coconut nourishment’ in customers’ minds over time.  Parachute Hair Oil Shampoo Cream Cooking Oil Baby Soap Baby Oil .Brand Distinction  Many brands achieve distinction in the form of a unique attribute. the opportunity to launch a variety of products exploiting this distinction. benefit or feature which gets uniquely associated with the brand.  For instance. This would give Marico Industries.

Watches. S/W devpt..Brand Image or Prestige  A brand extension may involve a foray into unrelated product categories based on a brand’s exclusive image or prestige value. . Automobile. Training etc. Steel. Heavy Vehicles.

Distinctive Taste. Nescafe Milk Supplement Nescafe Cold Coffee Nescafe Coffee Nescafe Chocolate Nescafe Biscuits . ingredient or component. Then the marketers can make entries into unrelated product categories capitalising on these properties. Ingredient or Component  A brand may develop equity based on any and / or combination of taste.

Brand Extentability .

.  The brand extendability depends on its character. Extensions involve transfer of associations from the parent brand to the extension.  The brands can be classified into 5 types through extendability.

it is a situation where there is very little difference between the brand and the product.Five forms of brands  The Product Brand . .  Example : vicks.  The brand is used as an identity of the product.

Form 2 – Formula Brand  Formula means a set procedure  A brand which comes in the formula category simply implies that a standard procedure has been used to make the product. . pickles etc..  Example : cooking oil.

.  Amul has developed its brand as an expertise in milk processing.  Example : nokia is known for user friendly.Form 3 – Know – how brand  Know – how is an expertise that a firm develops in a specialized area of activity.

 Example – Gillette maintains its focus on men’s grooming in all its brands.  Logo is ‘the best a man can get’ which creates the interest among the target audience. It may reflect its core spirit.  Whirlpool – home maker  Nike – winning – to be on the cutting edge. .Form 4 – Interest brand  A brand may be defined by its centre of interest.

Form 5 .  The philosophy transforms its products in a realm altogether different from its physical reality.Philosophy  The brand at this level acquires more intangible character and orientation.  Example : Parker pen. De beers diamond .

mixers etc.Forms of brand extendability Product Brand Pillsburry Atta Formula Brands Mother’s Recipes Pickles lime. Interest Brand Disney Toys. Theme park. etc Philosophy Brand Cartier Watches. pens . Fans. jewellery. mango. movies. Theatre. Bags. mixed Know –how brand Bajaj Irons. coolers..

 Therefore.  Extensions are not simple as they appear to a layman. it must begin with exploring the brand in a prospect’s mind.  Brand extension is not a physical act of merging two products.Extensions……………….  It is a tough process involving marrying two cognitive or perceptual concepts in order to create a consistent entity.  Consumers reject extensions when they do not make sense. .

Exploring the brand involves seeking answers to the following questions…….  What is a brand’s awareness level?  What are its recall and recognition levels?  What are different attributes associated with a brand?  What benefit associations are connected with a brand?  What are a brand’s personality associations?  What are the symbols associated with the brand?  What are a brand’s user associations?  What is the perceived essence of the brand?  What is a brand’s philosophy? .

Ponds PONDS Talc Body care Feminine Floral Cream -Body Talc -Talc for Special occasions Nail enamels Lip colours etc Room Freshner. etc . soaps. Body oil. cleansing cream. Fragrance. creams Beauty cream. Conditioning cream.Strength of Associations . etc Body lotion. shampoo.

 The parent brand enjoys positive beliefs and favourable attitude in customers memory.Making an Extension successful  Aaker & Keller proposed certain assumptions about consumer behaviour which are fundamentally responsible for the success of a brand extension. also these are not created by the brand extension.  The negative associations are not transferred to the brand extensions.  It is these pre-existing beliefs and attitudes which help in the formation of positive beliefs and favourable attitude toward the brand extension. .

Questions for Assignment  Highlight atleast five brands of various product category and find out the extension opportunities of those brands. .  Find out which brand can be extended far from its present product. and which can move just above the extension boundary.

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