Introducing & naming products & brand extensions chapter 12 by Leroy J. Ebert

Introducing & naming products & brand extensions chapter 12 by Leroy J. Ebert

• 1.
  Leroy J. EbertDipM MCIM,Chartered Marketer, MSLIM Manager Marketing and Business Development – Logiwiz Ltd. Presentation Developed as Course Material for the SLIM Diploma in Brand Management
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   When afirm uses an established brand name to introduce a new product
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   Sub brand Parent Brand  Family Brand
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   Line Extension– Marketers may apply the parent brand to a new product that targets a new market segment within a product category the parent brand currently serves. A line extension often adds a flavor, ingredient variety, different size or different application  Modifier brands
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   Category Extension:Marketers apply the parent brand to enter a different product category from the one it currently serves
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   Same productin different forms – Ex. AXE spray & Deo Roll on  Companion Products – Ever ready batteries and torches of Signal toothpaste and brushes or adidas shoes and apparels  Same customer franchise – Ceylinco Life and CeylincoVIP, Laugfs Service station and Fuel station, HSBC credit cards and Lifestyle loans
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   Expertise Brands– ex. Sony TV, to Hi Fi’s, to DVD players. I’m sure that you will think twice In buying a Sony Car??????  Unique benefits – extend brands to offer more benefits and convenience ex. VIM dish wash liquid, soap, powder Or Panadol syrup instead of tablets
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   Distinctive taste,ingredient, of component – extend based of a functional aspect ex. Herbal tooth paste, Diet cola etc.
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   Awareness –High awareness due to strength of original brand  Brand association – Sony is associated with quality and innovative electronic equipment  Quality association – adidas footwear to apparel  Encourage quicker distribution and trial purpose –Vim powder has worked so I shall try the liquid  Reduce perceived risk  Increase efficiency of promotional expenditure  Avoid cost of developing a new brand  Lower production costs – Raw materials, packaging etc  Enhance the parent brands image  Revitalize the brand  Bring in new customers and increase market share
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   No valueadded – If the core brand is not strong then the extension might not succeed  Negative association – Remember the example of the Sony car  Name confusion – Ex. Ceylinco, can you name all the companies that had Ceylinco in it?  Possible cannibalization – Vim liquid eating into the vim soap market  Retailers resistance – lack of shelf space  Can fail and hurt the parent brand  Can succeed but diminish identification with any one category  Can prevent a company from introducing a new brand : i.e. Levis & Dockers, Disney &Touchstone films
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   Brand extensionsinevitably must add equity to the parent brand  How Salient parent brands associations are in the mind of the consumer in the extension context  How Favorable any inferred associations are in the extension context  How unique and inferred associations are in the extension category, how are these associations compared to that of competition
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   Brands areextended up into more premium market segments or down into more value conscious consumer segments  The logic is that the equity of the parent brand can be transferred in either direction to appeal to consumers who otherwise would not consider the parent brand  Upward extension can improve brand image  Vertical brand extension can confuse existing consumers as a result have existing and potential customers reject the parent brand
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   Extending brandacross multiple product categories
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  Content Extracted from“Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (25th April 2014)