Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

CHAPTER: 12
Introducing and
Naming New
Products
and Brand
Extensions

Define the different types of brand extensions.

List the main advantages and disadvantages of brand

extensions.

Summarize how consumers evaluate extensions and how

extensions contribute to parent brand equity.

Outline the key assumptions and success criteria for brand

extensions.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Learning Objectives

Brand extension: When a firm uses an established brand

name to introduce a new product.

Line extension: Adds a different variety, a different form

or size, or a different application for the brand.

Category extension: Marketers apply the parent brand to

enter a different product category from the one it currently
serves.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

New Products and Brand Extensions

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Advantages of Extensions

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Facilitate New-Product Acceptance

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Provide Feedback Benefits to the

Parent Brand

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Disadvantages of Brand Extensions

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Managerial assumptions

Brand extensions and brand equity

Vertical brand extensions

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Understanding How Consumers

Evaluate Brand Extensions

Managerial Assumptions
Consumers have some awareness of and
associations about the parent brand in memory.

positive

At least some of these positive associations will be evoked

by the brand extension.

Negative associations are not transferred from the parent

brand.

Negative associations are not created by the brand

extension.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Creating extension equity.

Contributing to parent brand equity.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Brand Extensions and Brand

Equity

Pros and cons

Examples

Naming strategies

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Vertical Brand Extensions

Define actual and desired consumer knowledge about the

brand.

Identify possible extension candidates.

Evaluate the potential of the extension candidate.

Design marketing programs to launch extension.

Evaluate extension success and effects on parent brand

equity.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Evaluating Brand Extension

Opportunities

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Figure 12-7: Brand Extension

Guidelines Based on Academic
Research

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Figure 12.7: Brand Extension

Guidelines Based on Academic
Research

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Brand extensions occur when a firm uses an established brand

name to introduce a new product.
The basic assumption behind brand extension:
Consumers
have some awareness of and
associations about the parent brand in memory.

Brand extension
associations.

will

evoke

at

least

some

positive

of

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

these

Copyright 2015 Pearson India Education Services Pvt. Ltd.

To Sum Up

To Sum Up...

Salience of consumers associations with the parent brand.

How compelling and relevant

corresponding attribute.

How strong consumers existing attribute or benefit associations

are for the parent brand.

is

the

evidence

about

the

To evaluate brand extension opportunities, marketers need to

consider strategies by applying managerial judgment and consumer
research.

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

The extensions ability to establish its own equity will depend on:

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e

By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob

Copyright 2015 Pearson India Education Services Pvt. Ltd.

Thank you.