Brand Extension Decision

vs
Individual Brand
By : Vikram

Page 1
 What is a Brand?

Definition: “A brand is a product that

adds other dimensions that
differentiates it in some way from
other products designed to satisfy
the same need.”

Page 2
Brand Extension
Brand extension:
extension application of a popular brand name to a new product
in an unrelated product category

Page 3
Second Page :

Page 4
 Advantages of Brand Extension

o It increases brand image.

o The risk perceived by the customers reduces.
o Increase the probability of gaining distribution and trial

o The efficiency of promotional expenditure increases. Advertising,

selling and promotional costs are reduced.
o Cost of developing new brand is saved.
o Consumers can now seek for a variety.
o There are packaging and labeling efficiencies.
o The expense of introductory and follow up marketing programs is
reduced.
o Enhance the parent brand image
o Bring new customers into brand franchise and increase market coverage
o Revitalize the brand
o Permit subsequent extensions

Page 5
Disadvantages of Brand Extension
o Can confuse or frustrate consumers
o Can encounter retailer resistance
o Can fail and hurt parent brand image
o Can succeed but cannibalize sales of parent brand
o Can succeed but diminish identification any one category
o Can succeed but hurt the image of parent brand
o Can dilute brand meaning
o Can cause the company to forgo the chance to develop a new brand

Page 6