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Ashes| Un|vers|ty

CCUkSL 1I1LL S1kA1LGIC 8kAND


MANAGLMLN1
SLMLS1Lk SLCCND 2010]2011
MCDULL 10 Des|gn|ng and Imp|ement|ng a
8rand|ng Strategy II Introduct|on Nam|ng
New roducts 8rand Lxtens|ons
Lecturer Lbow Sp|o
Learnlng CuLcomes
W AppreclaLe Lhe role of brand exLenslons ln
creaLlng malnLalnlng and enhanclng brand
equlLy
W know Lhe guldellnes for lnLroduclng and
namlng of new producLs and brand exLenslons
W know Lhe role and characLerlsLlcs of sLrong
brand managers
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Leverage Lhe 8rand
W llrms are seeklng Lo bulld power" or mega"
brands LhaL esLabllsh a broad markeL fooLprlnL
appeallng Lo mulLlple cusLomer segmenLs wlLh
mulLlple producLs all underneaLh Lhe brand
umbrella
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Ansoff's CrowLh Share MaLrlx
Current Current
Products Products
New New
Products Products
Current Current
Markets Markets
Market Market
penetration penetration
strategy strategy
Product Product
deelopment deelopment
strategy strategy
New New
Markets Markets
Market Market
deelopment deelopment
strategy strategy
Diersiication Diersiication
strategy strategy
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8rand LxLenslons
W When a flrm uses an esLabllshed brand name
Lo lnLroduce a new producL
W 8rand exLenslon classlflcaLlon
Llne exLenslon
W uslng a subbrand Lo LargeL a new markeL segmenL
wlLhln Lhe same producL caLegory A llne exLenslon
ofLen adds a dlfferenL flavour or lngredlenL varleLy
dlfferenL form or slze
CaLegory exLenslon
W uslng Lhe parenL brand ln a dlfferenL producL caLegory
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Ceneral SLraLegles for LsLabllshlng a CaLegory
1auber's lranchlseLxLenslon
W lottoJoce tbe some ptoJoct lo o Jlffeteot fotm Lxample key
owder (le key Soap ls Lhe parenL brand)
W ottoJoce ptoJocts tbot cootolo tbe btooJs Jlstloctlve toste
loqteJleot ot compooeot Lxample Cmo SLaln 8emover 8ar
(le Cmo ueLergenL owder ls Lhe parenL brand)
W lottoJoce compooloo ptoJocts fot tbe btooJ Lxample
Coleman camplng equlpmenL
W lottoJoce ptoJocts televoot to tbe costomet ftoocblse of tbe
btooJ Lxample vlsa's 1ravelers' Cheque
W lottoJoce ptoJocts tbot copltollze oo tbe fltms petcelveJ
expettlse Lxample Ponda lawn mowers
W lottoJoce ptoJocts tbot teflect tbe btooJs Jlstloctlve beoeflt
otttlbote ot feotote Lxample Lysol's deodorlzlng"
household cleanlng producLs
W lottoJoce ptoJocts tbot copltollze oo tbe Jlstloctlve lmoqe ot
ptestlqe of tbe btooJ Lxample Calvln kleln cloLhes
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AdvanLages of LxLenslons
W laclllLaLe new producL accepLance
mprove brand lmage
8educe rlsk percelved by cusLomers
ncrease Lhe probablllLy of galnlng dlsLrlbuLlon and
Lrlal
ncrease efflclency of promoLlonal expendlLures
8educe cosLs of lnLroducLory and followup
markeLlng programs
Avold cosL of developlng a new brand
Allow for packaglng and labellng efflclencles
ermlL consumer varleLy seeklng
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AdvanLages of LxLenslons (ConL)
W rovlde feedback beneflLs Lo parenL brand
Clarlfy brand meanlng
Lnhance Lhe parenL brand lmage
8rlng new cusLomers lnLo brand franchlse and
lncrease markeL coverage
8evlLallze Lhe brand
ermlL subsequenL exLenslons
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ulsadvanLages of LxLenslons
W Can confuse or frusLraLe consumers
W Can encounLer reLaller reslsLance
W Can fall and hurL parenL brand lmage
W Can succeed buL cannlballze sales of parenL brand
W Can succeed buL dlmlnlsh ldenLlflcaLlon wlLh any one
caLegory
W Can succeed buL hurL Lhe lmage of Lhe parenL brand
W Can dlluLe brand meanlng
W Can cause Lhe company Lo forgo Lhe chance Lo develop
a new brand

W Managerlal assumpLlons
Consumers have some awareness of and poslLlve
assoclaLlons abouL Lhe brand ln memory
AL leasL some of Lhese poslLlve assoclaLlons are
evoked by Lhe brand exLenslon
negaLlve assoclaLlons are noL Lransferred from Lhe
parenL brand
negaLlve assoclaLlons are noL creaLed by Lhe
brand exLenslon
undersLandlng Pow CusLomers LvaluaLe 8rand LxLenslons

CreaLlng LxLenslon LqulLy


5olleoce of parenL brand assoclaLlons ln Lhe
mlnds of consumers ln Lhe exLenslon conLexL
2 lovotoblllty of any lnferred assoclaLlons ln
Lhe exLenslon conLexL
J uolpoeoess of any lnferred assoclaLlons ln Lhe
exLenslon conLexL

ConLrlbuLlng Lo arenL 8rand LqulLy


W Pow compellloq Lhe evldence ls concernlng Lhe
correspondlng aLLrlbuLe or beneflL assoclaLlon
ln Lhe exLenslon conLexL
W Pow televoot or dlagnosLlc Lhe exLenslon
evldence ls concernlng Lhe aLLrlbuLe or beneflL
for Lhe parenL brand
W Pow cooslsteot Lhe exLenslon evldence ls wlLh
Lhe correspondlng parenL brand assoclaLlons
W Pow sttooq exlsLlng aLLrlbuLe or beneflL
assoclaLlons are held ln consumer memory for
Lhe parenL brand
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Successful LxLenslons
W MusL creaLe polnLsofparlLy and polnLsof
dlfference ln exLenslon caLegory
MusL recognlze compeLlLlve reacLlons
W MusL enhance polnLsofparlLy and polnLsof
dlfference of parenL brand
W MusL maxlmlze Lhe advanLages and mlnlmlze
Lhe dlsadvanLages of brand exLenslons
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Successful CaLegory LxLenslons
W vory shampoo and condlLloner
W vasellne nLenslve Care skln loLlon
W vlsa Lraveler's checks
W SunklsL orange soda
W ColgaLe LooLhbrushes
W Mars lce cream bars
W 8lc dlsposable llghLers
W Ponda lawn mowers
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unsuccessful CaLegory LxLenslons
W LlfeSavers chewlng gum
W Parley uavldson wlne coolers
W 8lc perfumes
W kleenex dlapers
W Levl's 1allored Classlcs sulLs
W uomlno's frulLflavored bubble gum
W lrulL of Lhe Loom laundry deLergenL
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LvaluaLlng 8rand LxLenslon
CpporLunlLles
W ueflne acLual and deslred consumer
knowledge abouL Lhe brand
W denLlfy posslble exLenslon candldaLes
W LvaluaLe Lhe poLenLlal of Lhe exLenslon
candldaLe
1he llkellhood LhaL Lhe exLenslon wlll reallze Lhe
advanLages and avold Lhe dlsadvanLages of brand
exLenslons As wlLh any new producL analysls of
consumer corporaLe and compeLlLlve facLors can
be useful
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LvaluaLlng 8rand LxLenslon
CpporLunlLles
W ueslgn markeLlng programs Lo launch
exLenslon
8ulldlng brand equlLy for a brand exLenslon
requlres chooslng brand elemenLs deslgnlng Lhe
opLlmal markeLlng program Lo launch Lhe
exLenslon and leveraglng secondary assoclaLlons
W LvaluaLe exLenslon success and effecLs on
parenL brand equlLy
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When are brand exLenslons approprlaLe?
W f Lhey see some basls of flL" or slmllarlLy
beLween Lhe proposed exLenslon and parenL
brand
W 1he ma[or mlsLake ln evaluaLlng exLenslon
opporLunlLles ls falllng Lo Lake all of consumers'
brand knowledge sLrucLures lnLo accounL
W CfLen markeLers mlsLakenly focus on only one
brand assoclaLlon and lgnore oLher poLenLlally
lmporLanL brand assoclaLlons ln Lhe process
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Culdellnes for brand exLenslons
Successful brand exLenslons occur Lhe parenL brand has
favourable assoclaLlons and consumers percelve a flL beLween
Lhe parenL brand and Lhe exLenslon producL
1here are many bases of flL producL relaLed aLLrlbuLes and
beneflLs as well as nonproducL relaLed aLLrlbuLes and
beneflLs relaLe Lo common usage slLuaLlons or user Lypes
3 uependlng on Lhelr knowledge of Lhe producL caLegorles
consumers may percelve flL based on Lechnlcal or
manufacLurlng commonallLles or on surface conslderaLlons
such as necessary or slLuaLlonal complemenLarlLy
4 Plgh quallLy brands sLreLch farLher Lhan averagequallLy
brands alLhough boLh Lypes have boundarles
3 A brand LhaL consumers see as proLoLyplcal for a producL
caLegory can be dlfflculL Lo exLend ouLslde Lhe caLegory

Culdellnes for brand exLenslons


6 ConcreLe aLLrlbuLe assoclaLlons Lend Lo be
more dlfflculL Lo exLend Lhan absLracL beneflL
assoclaLlons
7 Consumers may Lransfer assoclaLlons LhaL are
poslLlve ln Lhe orlglnal producL class buL
become negaLlve ln Lhe exLenslon conLexL
8 Consumers may lnfer negaLlve assoclaLlons
abouL an exLenslon perhaps evenL basedon
oLher lnferred poslLlve assoclaLlons
9 L can be dlfflculL Lo exLend lnLo a producL
class LhaL consumers see as easy Lo make

Culdellnes for brand exLenslons


A successful exLenslon can noL only conLrlbuLe Lo Lhe parenL
brand lmage buL also enable a brand Lo exLend even furLher
An unsuccessful exLenslon hurLs Lhe parenL brand only when
Lhere ls a sLrong basls of flL beLween Lhe Lwo
An unsuccessful brand exLenslon does noL prevenL a flrm from
backLracklng and lnLroduclng a more slmllar exLenslon
3 verLlcal exLenslon can be dlfflculL and ofLen requlre sub
brandlng sLraLegles
4 1he mosL effecLlve adverLlslng sLraLegy for an exLenslon ls one
LhaL emphaslzes lnformaLlon abouL Lhe exLenslon (raLher Lhan
remlnders abouL Lhe parenL brand)
key olnLs
LxLenslons can be elLher lnLroduced ln a producL caLegory
currenLly served by Lhe parenL brand (le llne exLenslon) or a
compleLely dlfferenL producL caLegory (le caLegory
exLenslon)
LxLenslons allow flrms Lo reduce Lhe cosLs of brandbulldlng
adverLlslng campalgns and of educaLlng consumers abouL
speclflc producL aLLrlbuLes
3 1he rlsks of brand exLenslons lnclude dlluLlon of Lhe brand
name and negaLlve feedback effecLs on exlsLlng producLs
4 1he besL exLenslons are Lhose where Lhe parenL brand
name helps Lhe new producL and Lhe new producL helps
Lhe parenL brand
1uLorlal
Pow successful do you predlcL Lhese recenLly proposed
exLenslons wlll be? Why?
a Lvlan (famous for waLer) and hlghend spas
b SLarbucks (famous for coffee) and fllm producLlon promoLlon
2 Conslder Lhe followlng brands and dlscuss Lhe exLendlblllLy of
each
Parleyuavldson 8ed 8ull 1ommy Pllflger Ashesl unlverslLy
College u1 llnanclal Servlces uaLabank uevLraco
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CharacLerlsLlcs of SLrong 8rands
Managers
W undersLand brand meanlng and markeL approprlaLe producLs ln
an approprlaLe manner
W roperly poslLlon Lhe brand
W rovlde superlor dellvery of deslred beneflLs
W Lmploy a full range of complemenLary brand elemenLs and
supporLlng markeLlng acLlvlLles
W Lmbrace lnLegraLed markeLlng communlcaLlons and communlcaLe
wlLh a conslsLenL volce
W Measure consumer percepLlons of value and develop a prlclng
sLraLegy accordlngly
W LsLabllsh credlblllLy and approprlaLe brand personallLy and
lmagery
W MalnLaln lnnovaLlon and relevance for Lhe brand
W SLraLeglcally deslgn and lmplemenL a brand hlerarchy and brand
porLfollo
W mplemenL a brand equlLy managemenL sysLem Lo ensure LhaL
markeLlng acLlons properly reflecL Lhe brand equlLy concepL

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