Current Markets
New Markets
Brand Extensions:
When a firm uses an established brand name to introduce a new product Brand extension classification Line extension Using a sub-brand to target a new market segment within the same product category Category extension Using the parent brand in a different product category
Example: Ocean Spray Cranberry Juice Cocktail and Jell-O Pudding Pops Introduce products that contain the brands distinctive taste, ingredient, or component. Example: Philadelphia cream cheese salad dressing and Haagen-Dazs Cream Liqueur Introduce products relevant to the customer franchise of the brand. Example: Gerber insurance and Visa Traveler's Checks
Introduce products that reflect the brands distinctive benefit, attribute, or feature. Example: Lysols deodorizing household cleaning Products and Ivorys mild cleaning products Introduce products that capitalize on the distinctive image or prestige of the brand. Example: Calvin Klein clothes and accessories and Porsche sunglasses
Advantages of Extensions:
Facilitate new product acceptance
1.
2. 3. 4. 5. 6. 7. 8.
Improve brand image Reduce risk perceived by customers Increase the probability of gaining distribution & 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 labeling efficiencies Permit consumer variety seeking
Disadvantages of Extensions:
1. 2. 3. 4. 5. 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 6. Can succeed but hurt the image of the parent brand 7. Can dilute brand meaning 8. Can cause the company to forgo the chance to develop a new brand
assumptions :-
1. Consumers have some awareness of and positive associations about the brand in memory 2. At least some of these positive associations are evoked by the brand extension 3. Negative associations are not transferred from the parent brand 4. Negative associations are not created by the brand extension
Successful Extensions:
Must create points-of-parity and points-of-difference in
Example 2
Brand Definitions
Moisturizer Lotion Medicinal Vaseline Intensive Care Purity Body care Pump bottle Baby care Fragrance
Related Categories
Soap, Face cream, Skin cream Sunburn, Aftershave, Baby Antiseptic, First-aid cream, Hemorrhoid cream Cotton, Gauze, Sterile pads Emery boards, Muscle toner, Cotton swabs Liquid hair net, Mustard, Glass cleaner Diapers, Powder, Oil Perfume, Room deodorizer, Deodorant
Logo Trademark
2.
Building Brand equity Consumer perceptions of value must guide pricing decisions Firm must integrate marketing communications by mixing and matching communication options
3.