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
Product Sizes 1.1 ltr

Bisleri
.5 ltr

Bisleri Bisleri Bisleri

1.2 ltr 1.5 ltr 5 ltr
Colour Pantene Pantene Pantene Etc.,
White Black Pink

Flavours Rasna Rasna Rasa Rose ,

Orange Mango etc

Ingredient Colgate Colgate Colgate

gel Herbal Salt etc.,
Form

Vim
Bar
Vim
Liquid

Vim
Powder
 According to Gautam Singhania,
Chairman and Managing Director,
Raymond India: "Raymond aims to
acquire a dominant position in the
apparel sector in the country.
 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.
 We have enhanced our offerings under
all our apparel brands to provide a
complete wardrobe solution."
 "Men today want different solutions
for different occasions - formalwear,
relaxed work wear, evening wear,
club wear, traditional wear, travel
wear as well as sportswear.
 Our brands Park Avenue, Parx and
Manzoni, have different categories to
cater to this need.
 Thus, all our brands offer a solution to
changing men's fashion needs at
different price points," says Shreyas
Joshi, President, Raymond Apparel.
Why Line Extensions?
 In most of the product categories
including fast moving consumer
goods, consumer durables and
services, line extension has been the
name of the game.
 It is an expansionist move.
 The firms seem to seek growth more
vigorously.
Nine prominent reasons………
 Customer Segmentation
 Customer need for variety
 Pricing Breadth
 Capacity Utilization
 Quick gains
 Competitive Reasons
 Trade Demands
 Counter Competition
 Image Benefits
Line Extension Risks
 There are several dangers associated
with line extensions.
 Line Confusion - Marketers
sometimes add products to their line
without sound logic and reasoning,
without any clear role and goal. This
may confuse the customers and the
retailers and will affect the brand’s
owner company in the long run.
Line Extension Risks…
 Encourage Variety seeking –
Brand loyalty is every marketers
dream. By line extension, customers
practice and become the habitant of
variety seeking. Hence it influence
brand switching behaviours. The
loyalty is thus weakened.
Line Extension Risks…
 Success Myopia – An idea may be a
grand enough to be converted into a
full-fledged independent brand. 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…
 Strained relations - When the lines
expand, marketers tend to pressurize their
trade partners such as wholesalers and
retailers to carry the complete line in
accordance with their wishes. The pressure
appears to be applied more intensely at the
retail level. The marketers seek adequate
shelf space, promotion and information. But
at the retailers end, it brings confusion and
chaos.
 The result is the strained relations
between the marketer and the retailer.
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.
 What appears to be logical to the managers
performing these adventures tends to be
illogical in the perception of customers.
 This is the reason why line extensions do
not create mega successes.
Line Extension Trap…….
 Line extensions do not work because they
tend to go against the fundamental aspect
of positioning.
 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.
 It is a fallacy that a brand is just a name
that can be put on any product.
 This is a great mistake. It undermines and
destroys the brand in a prospect’s mind.
 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.
 In line extension the pdt. Category remains
constant whereas in brand extensions
product category is a variable.
EXAMPLE
 Ponds - Cold cream, Toilet soap
Shampoo, Tooth paste, Moisturising
lotion, Talc & Face wash.
 LG – Television, Refridgerators,
Computer monitors, Microwaves, Air
Conditioners, Washing Machines &
Mobile phones.
 Park Avenue – Shirts, Shaving cream,
Jeans, Belts, Perfumes, Soap & Razar.
Why Brand Extension?
 Cost of New launches
 Promotional Efficiency
 Consumer Benefits
 Feedback effects
 Returns
Types of Extensions
 Product form extension – A product
launched in a different form usually
means line extension, but if a
different product form constitutes an
entirely different product category.
 Example:
 Amul milk Amul Condensed milk
 Real Juices Real Juice Concentrate
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 Colgate
Cream Tooth Brush

Gillette Gillette Gillette

Razors Shave forms After Shave
Customer Franchise
 A marketer may extend a product
range in order to meet the needs of a
specific customer group.

J&J J&J J&J J&J

J&J Baby Baby Baby Baby
Baby Oil Cream Shampoo Diapers
Talc
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. This strategy is
particularly seen in Japanese companies.

Honda
Honda
Honda Lawn
scooters
Cars movers
Brand Distinction
 Many brands achieve distinction in the form of a
unique attribute, benefit or feature which gets
uniquely associated with the brand.
 For instance, Parachute may have expertise of
‘coconut nourishment’ in customers’ minds over
time. This would give Marico Industries, the brand
owner, the opportunity to launch a variety of
products exploiting this distinction.
 Parachute

Hair Cooking Baby Baby

Shampoo Cream
Oil Oil Soap Oil
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.

Steel, Automobile, Heavy Vehicles, Watches, S/W devpt. Training etc .,

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

Nescafe Nescafe
Nescafe Nescafe Nescafe
Milk Cold
Coffee Chocolate Biscuits Supplement Coffee
Brand Extentability
 Extensions involve transfer of
associations from the parent brand to
the extension.
 The brand extendability depends on
its character.
 The brands can be classified into 5
types through extendability.
Five forms of brands
 The Product Brand - it is a situation
where there is very little difference
between the brand and the product.
 The brand is used as an identity of
the product.

 Example : vicks,
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.
 Example : cooking oil, pickles etc.,
Form 3 – Know – how brand
 Know – how is an expertise that a
firm develops in a specialized area of
activity.

 Example : nokia is known for user

friendly.
 Amul has developed its brand as an
expertise in milk processing.
Form 4 – Interest brand
 A brand may be defined by its centre of
interest. It may reflect its core spirit.
 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.
 Whirlpool – home maker
 Nike – winning – to be on the cutting edge.
Form 5 - Philosophy
 The brand at this level acquires more
intangible character and orientation.
 The philosophy transforms its
products in a realm altogether
different from its physical reality.

 Example : Parker pen, De beers

diamond
 Forms of brand extendability

Product
Brand Formula
Brands
Know –how
Pillsburry
Mother’s
Atta brand Interest
Recipes
Pickles lime, Brand
mango, Bajaj Philosophy
mixed Disney Brand
Irons, Fans,
coolers, Toys, Cartier
mixers etc., Theatre,
Theme park, Watches,
movies, etc
jewellery,
Bags, pens
Extensions……………….
 Extensions are not simple as they appear to
a layman.
 Consumers reject extensions when they do
not make sense.
 Brand extension is not a physical act of
merging two products.
 It is a tough process involving marrying
two cognitive or perceptual concepts in
order to create a consistent entity.
 Therefore, it must begin with exploring the
brand in a prospect’s mind.
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?
Strength of Associations - Ponds
PONDS

Talc Body Cream

Feminine Floral
care

Room
Nail Freshner, Body Beauty cream,
-Body Talc Conditioning
enamels soaps, lotion,
-Talc for cream,
Lip colours Fragrance, Body oil, cleansing
Special
etc shampoo, creams cream, etc
occasions
etc
Making an Extension successful
 Aaker & Keller proposed certain assumptions about
consumer behaviour which are fundamentally
responsible for the success of a brand extension.

 The parent brand enjoys positive beliefs and

favourable attitude in customers memory.
 It is these pre-existing beliefs and attitudes which
help in the formation of positive beliefs and
favourable attitude toward the brand extension.
 The negative associations are not transferred to the
brand extensions, also these are not created by 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.