Brand Extension Strech Good Deck

Part V
Managing Brand Offer Architecture

Managing the Brand Internationaly
PSU - 2006 - Global Brand

1
Management - Alain Hutinel
Managing Brand offer
Architecture
Or How to signify at the same time :
. a common reference of brand offerings
and
. how they differ from each other
and
. What the Brand stands for.

2
Many different types of
brands
 B2B  Corporate
 B2C
 Commercial
 Web
 Trade  Non-business (?)
 Local – Countries
 Regional – Official bodies
 National – Charity org.
 International – Politics/Polticians
 Worlwide (meta) – …

3
Complex Brand Offer Architectures
 Product Brand : Exclusive name to a singleJean-Noel
product
Kapferer
to assure individual positionning (Tide, Martini ……)

 Line Brand : Extend a concept across different product
in segmented market or across similar markets (Renault ….)
 Range Brand : Use same name and promise in
product categories with same ability (Green Giant …..)
 Umbrella Brand : Support products in different

markets with each its own promise, Danon
 Source Brand : Support sub-brand names as above
 Endorsing Brand : Approve/garanty wide variety
of product brands, line and range brands GE
 Marque : Endorsing (Corporate)

Brand …..
4
Brand extension/stretching
 Why extend ?
 What is Brand «stretching» ?
 Where to extend ?
 Risks
 Keys to success
 Fitting
 … why NOT extend ?

5
Why extend brands ?
 increasing competition between less &
larger players with global aspirations
and ability to communicate globally
 towards saturation of markets
 similarity of brands’ offers attributes
 decreasing brand loyalty
 react to declining markets
 nourish the brand perceived vitality
6
What is the brand stretching ?
 It is the transfer of brand values on the new
market
 It shows that the brand is not related

directly to one sector but has values that can
transcend different products categories

7
«Where” Stretching the Brand
 same category : no distance extension
 new sub-category : short distance
extension
 new category : middle distance
extension
 new activity : long distance extension
 Geographic expansion

8
Dim Brand stretching
Comfort, liberty
9
Low cost in launching Danone Activ
and Talians

10
Barilla move into biscuits
taste, savor, Italian way of cooking

11
Swatch move into jewel
Modern, Quality/price, Variety, Innovative design

12
Caterpillar moved into shoes and
clothing
reliable, resistant, masculine

13
Taillefine move into biscuits and
water
Non fat, healthy

14
Mars move into ice cream
gourmandise, rich, sweet

15
Brand stretching risks
 Distort/Dilute the values of the Brand
 Lose the original consumers

16
Chevignon brand dilution
modern, adventurous, exquisite

17
Pierre Cardin brand dilution

18
Keys to success in brand
extension
Brand identity
Fit Relevance
Brand
Market’s values
extension Added
value

19
«Fitting»
 Perceived brand «typicality», ie product
categories which «go well» with the
mother brand
 Emotional agreement with the potential
extension product categories
 tested transferability of the brand’s
intangibles and of the brand’s «vision»,
brand’s identity & brand project.
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21
22
The success of pen, lighter,
and razors Bic
Accessible, practical, disposable

23
The failure of Bic perfume
The Bic values are not relevant to perfume

24
This failure did not dilute the
brand essence of Bic. Why ?
Because the Bic perfume was
coherent with Bic Brand identity
Brand Brand
identity extension

25
Economic evidences of brand
extensions
Higher survival rate of products
Higher chances of success, due to :
. trial rate
. conversion rate
. loyalty rate (repurchase)
Lower launch cost

26
Why NOT extend brands ?
 Unclear/no Brand Identity
 High brand switching pattern
 Unwatched Overheads Cost increase
 No sufficient resources for success
 No sufficient “Fit” and Relevance
 ….

27
CATEGORY EXTENSIONS
succeeded failed
 Adidas cosmetics  Campbell ketchup
 Bic parfumes
 Harley Davidson
 Levi’s suits
cosmetics
 Xerox computers
 Colgate toothbrush
 Clorox washing powder
 Calgon washing powder
 Crystal Pepsi un-cola

28
Procter & Gamble
Clairol
Herbal Essences

29
IMAGE TRANSFER
CLAIROL
HERBAL ESSENCES
CLAIROL
HERBAL ESSENCES

30
31
32
IMAGE TRANSFER

33
Managing the Brand in the
Global Context
= Cross-Cultural Branding within the Global

Business Strategy Game

34
Mega Brands 1

35
Mega Brands ?

36
Mega Brands ?

37
Mega Brands ?

38
Mega Brands ?

39
International Branding
 What has to be adapted ?
 Chinese/Asian Brands
 How much Brand origin is important ?

 American Dream, …. And next ?

40
The View from Honda
“We are the most international of the
Japanese companies. At the
moment we are the most diversified,
and we will be more diversified in
the future. Still, I think it would be
very hard to build a one-type world
car. In the end, I don’t think it
would be very efficient.”
---Nobuhiko Kawamoto
President and CEO, Honda Motor Company

41
The View from Toyota
Our global strategy used to center on “world cars,”
which we would modify slightly to accommodate
demand in different markets. Today our focus is
shifting to models that we develop and manufacture
especially for selected regional markets.
Examples
North America: Avalon and Camry coupe and station
wagon. 1997 Sienna minivan.
NUMMI Joint Venture: Tacoma light pickup.
Europe: Carina E
Southeast Asia: Toyota Utility Vehicle (Kijang in Indonesia,
Tamaraw in Philippines)
42
"Our vision has been described to you
for a decade. We believed that only
businesses that were number-one or
number-two in their markets could win
in the increasingly competitive global
arena. Those that could not were to be
fixed, closed or sold."
- John F. Welch, Jr.
Chairman and CEO, General Electric

43
Lifestyles are expressions
of sub-cultures
Signs : icons, indexes
& Symbols
Heroes
Rituals
Expressions of Values BRANDS ?

cultures
A value is a broad
Tendency to prefer
a certain state of affairs
over others
44
Value Structure Maps (VSM) and
Marketing
 The name of the game is to link
marketing offer attributes and benefits
to cultural values

45
3 Levels of associations
 Attributes - concrete - abstract
 Benefits/Consequences- functional
- psychological
 Values - Instrumental - Terminal
To be done for the category and each brand in the

category
46
47
Culture and Consumer
Behavior
Consumption values
 Functional Values. Relate to needs and satisfaction from use
and attributes
 Social Values. Relate to perceived utility in association with one
or several social groups and self-building. Includes symbolic values of
products and Brands.
 Emotional Values. Relate to emotional arousal linked to
contact with or thinking of product/Brand
 Epistemic Values.Related to novelty seeking, curiosity arousal,
knowledge seeking, innovation drive, variety
 Conditional Values. Related to capacity to provide temporary
functional or social values

48
Cultural Universals
 Athletics  Etiquette
 Body adornment  Family feasting
 Cooking  Food taboos
 Courtship  Language
 Decorative arts  Marriage
 Education
 Mealtime
 Mourning
 Ethics
 Music
 Property rights
 Status differentiation
 Religious rituals

49
Rokeach’s List of Terminal
(desired end-state) Values
 A comfortable life  Inner harmony
 An exciting life  Mature love
 A sense of  National security
accomplishment
 Pleasure
 A world at peace
 A world of beauty
 Salvation
 Equality  Self-respect
 Family security  Social recognition
 Freedom  True friendship
 happiness  wisdom
50
America’s enduring values
 Freedom (political, free  Patriotism (loyalty to the
speech) country)
 Equality before law  Democracy (belief that the
 Equality of opportunity (as judgment of the majority
expression of freedom + should rule)
individualism in the market  American exceptionalism
place) (moral mission of America)
 Fairness (get what you  CariIng beyond self
deserve as a consequence  Religion (transcendental)
of your own individual
actions)  Luck (good fortune)
 Achievment (efficacy of  … family (?)
individual efforts)

51
Belgian Values (1992)
 Having your own house  Better world for fellow men
 Thrift, frugality  Better Environment, love nature
 Progeny, having descendants  Self-esteem and self-respect
 Helathy & healthy life  Being respected by others
 Safety, living in a safe world  Being admired, prestigious,
have satus and success
 Security (count on people)
 Have leadership and power
 Being painless, fearless with good
fortune  Ability to be oneself as one is
 Keeping all one has as it is  Freedom, independance in
choice
 Paying attention to one-self
 Develop one’s abilities &
 Romanticism (being in love)
creativity
 Erotic love, sensuality  Having one’s own lifestyle
 Strong intimate partner relationship  Being stressless, inner harmony
 Love for children  Enjoy simple things in life
 Strong friendship  Leading a prosperous,
 Strong family ties comfortable, luxurious life
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First Starbucks Location in London
9/17/98

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Some Branding Issues

59
 Labels and « appellations » ?
 Retail/trade Brands ?
 WebBrands potential ?
 Corporate Brands ?
 Anti Globalisation ?
 Non Western Brand cultures ?
 AntiBrand laws ?
 Valuation/accounting ?
 Citizen Brand ?

60

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Part V

Managing Brand Offer Architecture

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

to assure individual positionning (Tide, Martini ……)

 Umbrella Brand : Support products in different

 Marque : Endorsing (Corporate)

PSU - 2006 - Global Brand

 It shows that the brand is not related

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

taste, savor, Italian way of cooking

Modern, Quality/price, Variety, Innovative design

reliable, resistant, masculine

Non fat, healthy

gourmandise, rich, sweet

 Lose the original consumers

PSU - 2006 - Global Brand

modern, adventurous, exquisite

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

Accessible, practical, disposable

The Bic values are not relevant to perfume

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

= Cross-Cultural Branding within the Global

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

 How much Brand origin is important ?

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

Expressions of Values BRANDS ?

PSU - 2006 - Global Brand

To be done for the category and each brand in the

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

PSU - 2006 - Global Brand

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