Lesson 7 :

Managing Brands Overtime

Brand Extension:
Identifying Opportunities

Brand extension is a new product

introduced under an existing brand name

• Line extensions: New product introductions within

existing categories
• Category extensions: New product introductions
outside existing categories

Equity implications of each extension

needs to be understood in terms of:

• Points-of-parity
• Points-of-difference
2
Brand Extensions:
Advantages
• Facilitate New Product
Development
• Improve brand image
• Reduce risk perceived by
customers
• Increase the probability of gaining
distribution and trial
• Increase efficiency of promotional
expenditures
• Reduce costs of introductory and
follow–up marketing programs
• Avoid cost of developing a new
brand
• Allow for packaging and labelling
efficiencies
• Permit consumer variety seeking
• Provide feedback benefits to
the Parent Brand and
Company
• Clarify brand meaning
• Enhance the parent brand
image
• Bring new customers into brand
franchise and increase market
coverage
• Revitalize the brand
• Permit subsequent extensions
3
Brand Extensions:
Disadvantages

Can confuse or frustrate consumers

Can encounter retailer resistance
Can fail and hurt parent brand image
Can succeed but cannibalize sales of parent brand
Can succeed but diminish identification with any one
category
Can succeed but hurt the image of parent brand
Can dilute brand meaning
Can cause the company to forgo the chance to
develop a new brand

4
Brand Extension:
Contribution to parent’s brand equity
Dettol & Nivea, p. 449 Michelin, p. 451
Clorox, p. 463
Brand Extension
Brand licensing: Franchising:
https://en.wikipedia.org/wiki/Brand_licens
ing#:~:text=Licensing%20is%20used%20by https://en.wikipedia.org/wiki/Fr
%20brand,(The%20Ritz%2DCarlton) anchising
Brand Extension

Co-branding Ferrari Theme Park

Issues with Brand Extension

Disadvantages: Limitations :
•Cannibalization, p. 458 •Difficult to extend outside
•Budweiser category
•Colgate total •Clorox laundry detergent
•Kleenex diapers
•Cadbury soap
L'Oréal’s Brand Extension
•Maybelline and Garnier – mass brand, sold thru
retail stores, drug stores or food stores
•L’Oriel Paris – higher end of mass range
•Biotherm and Lancome – premium luxury brand,
sold thru specialty stores or department stores
•Matrix and Redken –professional product sold thru
hair saloon
•La Roche-Posay – sold thru dispensing
dermatologists and pharmacies
•Own Retail Chains: Kiehl’s and Body Shop

Source: https://en.wikipedia.org/wiki/L'Or%C3%A9al

9
Brand Portfolio Marriot
Brand Category Brands
Iconic luxury Bvlgari
The Ritz-Carlton
The Ritz-Carlton Destination Club
Luxury JW Marriot
Lifestyle|Collections Edition
Autograph Collections
Renaissance Hotels
AC Hotels
Signature Marriot Hotels and Resorts
Modern Essentials Courtyard
SpringHill Suites
Fairfield Inn and Suites
Extended Stay Residence Inn
TownePlace Suites
ExecuStay
Marriott Executive Apartments
Vacation Club Marriott Vacation Club
Grand Residences

10
Branding Terms

•Brand line •Line extension

•Brand mix •Category extension
•Brand extension •Branded variants
•Sub-brand •Licensed product
•Parent brand
•Family brand
Brand Reinforcement

12
Revitalizing Brand

• Identifying Additional or New

Expanding brand Usage Opportunities
awareness • Identifying New and Completely
Different Ways to Use the Brand

• Identifying the Target Market

Improving brand
• Repositioning the Brand
image
• Changing Brand Elements

13
Brand Revitalization

14
Global Branding

•The marketing program for a global brand consists

of:
➢Product formulation
➢Package design
➢Advertising program
➢Pricing schedule
➢Distribution plan

15
Global Branding

•https://brandirectory.com/rankings/global/table
16
Advantages of Global Marketing Programs

Economies
of Scale in
Production
and
Distribution
Uniformity
Lower
of
Marketing
Marketing
Costs
Practices

Advantages

Ability to
Leverage
Power and
Good Ideas
Quickly and Scope
Efficiently
Consistency
in Brand
Image

17
Disadvantages of Global Marketing Programs

Differences in Differences in Differences in Brand

Differences in
Consumer Needs, Consumer and Product
Consumer
Wants, and Usage Responses to Development and
Response to
Patterns for Marketing Mix the Competitive
Branding Elements
Products Elements Environment

Differences in Differences in
Differences in the
Marketing Administrative
Legal Environment
Institutions Procedures

18
Standardization & Customization

Product Communica
Strategy tion Strategy

Distribution Pricing
Strategy Strategy

19
Managing Brand Crisis

•Cadbury: https://youtu.be/pejS3Bz4uWo
•Mc D’s : https://youtu.be/JrEsfTbq6go
20
Issues in Managing Brands Over time

•Swiss chocolate union vs Maestro Swiss @

https://ipkitten.blogspot.com/2016/04/wannabe-
swiss-dont-cheat-on-chocolate.html
•https://www.kass.com.my/news/maestro-swiss/
•McCurry vs McDonald’s
http://edition.cnn.com/2009/WORLD/asiapcf/09/08
/mcdonalds.mccurry.legal.malaysia/#:~:text=In%20
a%20David%2Dand%2DGoliath,ruled%20that%20it%
20didn’t.

21
End of Slides