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Brand territory and

brand stretching
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 Brand territory

Brand stretching

Benefits and limits

 Semiology

A brand proposes a worldview, in competition

with other worldviews and in relation with its
past and future
Brands transfer their values
to their endorsed products
Fit
Territory

“
”
 The brand territory
corresponds to the universe
of consumption where the
brand is legitimate, in the
consumers’ perspective
 Principles

Extending the brand Latent State

territory External Heart

Inner Core
"Consumers perceptions indicate zones
that belong to the brand halo Spontaneous
(extension zones) which constitute the Associations
brand territory, and forbidden zones
where the brand franchise can be Potentialities
endangered” (Kapferer, 1991)
Forbidden Zone / No go area
(threat on the brand’s equity)
“ ”
 The “fit” is a function of salient
shared associations between the
family brand and the extension
product and depends on the
semantic overlaps
 New strategic vision of
the company

Brand Brand
Equilibrium at time t0 New equilibrium à time t1

Brand extension strategy

Source: Géraldine Michel

1874, Tennis is invented

1875, Paul Babolat

1994, 1st tennis racket

1995, 1st badmington racket
2001, First tennis balls + first tennis shoes

2003, Clothes

2009, 1st badmington shoes

2012, Babolat Play and Connect

Territories have become blurred
“ The more a brand is
stretched, the
more valuable it
becomes
”
Marcel Botton (Nomen)
 Market capitalization
increases by 5%
compared with 0,5% for
new brands
Generalization of brand stretching
 A major distinction
Range Extension  Brand Extension

- Same nature - Different nature of

and product
- Same benefit or
Launching a modified -Different benefit
product in the same  using an established
broad market segment brand name in unrelated
markets segments
Types of brand stretching

Linear extensions: the Category extensions (or

parent brand is used to solar extensions) : the
brand a new product that parent brand is used to
targets a new market enter a different product
segment within a product category from that currently
category currently served served by parent brand
by the parent brand (new (Swiss Army watches,
flavours, packaging, etc) Honda lawnmowers)
Linear brand stretching
Solar brand stretching
 Main benefits

Leverage the brand asset

Reinforce the brand asset
 Image, legitimacy,
endorsement
Parent Brand Brand extension
Values and
associations

Effects on the brand image and visibility

(positive or negative effects)
Brand equity and brand extension

Positive effects on brand equity

Brand Equity
Good
•Brand Visibility
•Brand Loyalty •Brand Strength
•Fit/Credibility Brand extension
•Associations
•Trust
Bad

Negative effects on brand equity

 Impact on consumers

 Extension raises chances of survival, because it has

effects on the consumer behavior
 Comparison between products launched under a
new name and an existing one

New brand 100 13 100

Brand extension 123 17 161

Rate of trial (index) Conversion rate (%) Repeat purchase
rate (index)

Source: study conducted by OC&C

 CAUTION
Cannibalization
Missing opportunities
Consumer confusion
Brand dilution
Backlash
 extensions

Dilution of the brand image

Uncontrolled proliferation of the brand
The brand became insignificant and
aroused consumers’ confusion
Brand stretching principles

 The stretching potential varies from one brand

to another
 Brands that are “rich in value” can stretch
further
• These brands are not held back by narrow
associations / benefits
• The stronger and more developed the brand (high
in emotional content), the further it can be
stretched
Key factors of success

Extending strong brands

Maintaining quality
Setting clear goals
Finding a fit
Legitimizing
Linear brand stretching
Axe - Lynx
 Axe - Lynx
Getting the girl has never been easier, thanks to the AXE effect. As
devoted users know, women can’t resist ANYONE wearing those
great fragrances!
From the minute guys wake up in the morning and take a shower
to the moment they get ready for a long night out, AXE is there to
help them look, smell and feel their best.
With a full line of grooming products including bodysprays,
deodorants, anti-perspirants, shower gels, shampoos and styling
products, AXE gives guys confidence when it comes to getting the
girl. AXE is also more than just a leading men’s grooming line, it’s
a lifestyle brand that reaches guys unexpectedly through unique
experiences where they live, work and play.
 Axe - Lynx
Axe is launching a new fragrance – Anarchy – which will be marketed
in different versions for men and women.
AXE ANARCHY
Since Axe was first launched in 1983, it has been targeted at young
men. But now the brand is introducing a new fragrance – Anarchy –
which will be marketed in different versions for men and women.
The Anarchy women’s variant is being released as a limited edition.
 Brand extension authenticity
represents a consumer’s sense
that a brand extension is a
legitimate, culturally consistent
extension of the parent brand

Spiggle et alii.
(2012)
Creating an impression of authenticity
requires creating a sincere story
consisting of a creative blend of
industrial and rhetorical attributes
Images of authenticity are created by
developing a sincere story enabling
brands to maintain quality and
relevance while appearing above
commercial considerations