Topic: Brand Positioning and

Repositioning, Brand extension

decisions
What Is a Brand Extension?

You're standing in the ice cream aisle at the grocery store trying to
choose what to buy. Suddenly, you see it. Snickers Ice Cream Bars!
You love Snickers Candy Bars. Why wouldn't you love the ice
cream? It just makes sense. This is an example of the concept we
are going to talk about in this lesson, which explains how
companies expand through brand extensions.

A brand is a distinguishing symbol, mark, logo, name, word,

sentence or any combination of these, given to a group of
products that are made by the same company to distinguish from
others. A brand extension is when a company uses its leverage to
launch a new product in a different category. Snickers Ice Cream
Bars are a brand extension of the Snickers Candy Bars.
Brand Extension Strategies
1. Similar product in a different form from the original parent product - This is the
strategy Snickers used to create Snickers Ice Cream Bars.
2. Distinctive flavor/ingredient/component in the new item - Hershey's chocolate milk
uses this strategy. Consumers purchase this product because they know the taste of
Hershey's chocolate.
3. Benefit/attribute/feature - Febreeze is known for smelling good. Extending into the car
air freshener category made sense for this company.
4. Expertise - Honda is known for reliable engines, which made Honda lawn mowers a
good move for the company.
5. Companion products - Aunt Jemima launched a pancake syrup to go with its pancake
mix.
6. Vertical extensions - This strategy has the reputation of going backwards. For example,
Rice Krispies are used to make Rice Krispies Treats. So Kellogg decided to offer a ready-to-
eat version of this snack.
7. Same customer base - This strategy is used when a marketer knows they have a product
that could be used by their current customers.
8. Designer image/status - Harley-Davidson found success with this strategy through its
clothing line.
 Brand Positioning
 

Brand positioning refers to “target consumer’s” reason to buy your brand in

preference to others. It is ensures that all brand activity has a common aim; is
guided, directed and delivered by the brand’s benefits/reasons to buy; and it
focuses at all points of contact with the consumer.

Once a brand is positioned, it is very difficult to reposition it without destroying

its credibility. It is also called product positioning.
 Brand Positioning Example
• Position and own the category benefit
– Volvo: Safety
• Position the product and the consumer
– Pepsi Generation
• Position how the company does business
– D-Mart: Always the lowest price
• Position against the competition
– Apple: Think different
Brand Positioning Strategies:
1. Positioning by product attributes and benefits:
It is to associate a product with an attribute, a product feature,
or a consumer feature. Sometimes a product can be positioned
in terms of two or more attributes simultaneously.

2. Positioning by price/quality:
Marketers often use price/quality characteristics to position
their brands. One way they do it is with ads that reflect the
image of a high-quality brand where cost, while not
irrelevant, is considered secondary to the quality benefits
derived from using the brand. Premium brands positioned at
the high end of the market use this approach for positioning
the product.
Parle Bisleri — ‘Bada Bisleri, same price ‘ad campaign.
3. Positioning by use or application:
Another way is to communicate a specific image or position for a
brand to associate it with a specific use or application. Surf Excel
is positioned as stain remover ‘Surf Excel haina!’ Also, Clinic All
Clear – ‘Dare to wear black’.

4. Positioning by product class:

Often the competition for a particular product comes from out­
side the product class. For example, airlines know that while
they compete with other airlines, trains and buses are also
viable alternatives. Manufacturers of music CDs must compete
with the cassette industry. The product is positioned against
others that, while not exactly the same, provide the same class
of benefits.
5. Positioning by product user:
Positioning a product by associating it with a particular user or
group of users is yet another approach. Example ,Business today-
Business Magazine.

6. Positioning by competitor:
Competitors may be as important to positioning strategy as a
firm’s own product or services. In today’s market, an effective
positioning strategy for a product or brand may focus on specific
competitors.

7. Positioning by cultural symbols:

This is an additional positioning strategy wherein the cultural
symbols are used to differentiate the brands. Examples are
Humara Bajaj, Tata Namak.
What is Brand Repositioning?
When a company sees a decrease in sales over time and/or major
changes coming down the line, they know it is time to implement
changes within the company. Brand repositioning is when a
company changes a brand's status in the marketplace. This
typically includes changes to the marketing mix, such as product,
place, price and promotion. Repositioning is done to keep up with
consumer wants and needs.

Example: Mother Energy Drink T.V. Ad

 Brand Repositioning Strategies:
Consumer engagement - People want to be involved with the
brand. They want to feel like they belong. To make this happen,
businesses have to work to customize the products to fit consumer
needs. How can this be done? You have to get creative and figure
out what people want. For example, ZinePak is a company that saw
the decrease in music sales and took the opportunity to work with
artists to change the way they communicate with super fans. The
company does this through the creation of physical merchandise to
pair with the artists' CDs. The company helps build brands through
engaging consumers. It is a win-win.
Identity - The most important aspect of building a brand is to give
the company an identity. The brand is tied together through the
logo, slogan, color scheme, marketing materials, employees, etc.
Everything about the company should tie together and provide a
unified identity that the consumer can understand.

Spirit of giving - The world is starting to expect businesses to be

socially responsible and embrace the spirit of giving. Social
responsibility is an organization's obligation to better the welfare
of society. To utilize this strategy the company can include its
partnership with charities in its advertising.