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€ In

this presentation we will discuss« € What is brand? € What is brand extension? € Hierarchy for evaluating brand extension opportunity € Possible brand extension opportunities € Some advantages that force to Brand Extension

€ Brand

is € Identity of a specific product, service, or business € Take many forms, including a name, sign, symbol, color combination or slogan. € A legally protected brand name is called a trademark. € Name, term, sign, symbol, design, or some combination that identifies the products of a firm while differentiating them from the competition·s

€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. Organizations use this strategy to increase and leverage brand equity

L.G Nike

‡ Refrigerator ‡ Television ‡ Monitor ‡ Mobile phone

‡ Shoe ‡ T-shirts

DELL

Laptop

Monitor

Printer

Define actual & desired consumer knowledge Identify possible extension candidates Evaluate potential of extension candidates Evaluate potential candidates feedback effects Consider possible competitive advantage & reaction Design marketing campaign Evaluate extension success & effects on parent brand equity

€ When

prior brand equity exists € Consumer have awareness & positive association about the brand. € Negative associations are not transferred by the parent brand € When the firm has core competencies and special skills to launch a new product e-g.. Japanese
Honda car Honda Scooter Honda lawnmo wer

€ When

the firm can get economies of scale € When the consumer are demanding a new product under the same brand e-g
Nescafe coffee Nescafe Chocolate Nescafe Biscuits Nescafe Cold coffee

€ When

the firm has strong distribution channels

€ It

increases brand image € The risk perceived by the customers reduces. € Cost of developing new brand is saved. € Customers associate original/core brand to new product, hence they also have quality associations.

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