1. BRAND EXTENSION

2. Contents
 Introduction and guidelines for brand
extension
 Need for brand extension
 Pros and cons for brand extension
 Brand Association
 Types of brands

3. Introduction
 Brand extension is a marketing strategy In
which a marketer launches a new product
with a well established or developed brand
by using the same name
 An existing brand that develop brand
extension is known as a parent brand.

4. Guidelines for brand extension
1. Determine brand and category
associations.
The first step in determining brand relevance is to
begin with a comprehensive assessment of what
your brand and those of key competitors in the
category currently stand for in the minds of
customers, Through customer research, interview
and focus groups.

5.  2. Develop brand extendibility
proxies.
 Once the six to eight key associations have been
identified for the brand and category, proxies should be
carefully chosen for each one.
 To accomplish this, turn each association into a
continuum of attributes and benefits that range from
“close in” to “far out” relative to where customers
perceive the brand to be today. This will provide the
basis for rich conversations with customers as to how
the brand can and cannot be extended in the future

6.  3. Conduct brand extendibility research.
 Once brand and category associations have been
determined and representative proxies selected, it is
imperative to go back to customers to solicit their input.
 A variety of stimuli can be used for the chosen proxies to
facilitate brand extendibility research discussions,
including white paper concepts, representative images,
and actual products or prototype

7. 4. Create brand extendibility guidelines.
 The final step of this approach is to take the
insights obtained in the previous step’s customer
research and develop guidelines detailing how
the brand can and cannot be effectively
extended.
 Customer feedback needs to be interpreted and
translated into guidelines for extendibility

8. Need for brand extension
 The cost of establishing a new brand, especially in
the international markets is enormous
 A consumer is also more comfortable with a brand
name as an indirect measure of quality
 A brand can have better visibility by extending into
more variants.
 A core promise can be offered through the
extensions
 Whenever competition is intense, it become
necessary to cover every segment

9. Advantages of brand extension
 An established brand name for new products may
reduce the risk of initial trial and will increase the
probability of success
 The cost of extension is less than cost of bringing
new brands
 Successful brand spent less on advertising than new
name products
 Brand extension provides a means of capitalizing
brand equity
 Extension assists in enhancing the image of core
brand and gives a new product instant recognition

10. Disadvantage for brand
Extension
 Extension carry the risk of diluting what the brand name means to
consumers, especially if it fails to meet customer expectations
 If it fails it will dilute the company flagship and product carrying that
brand that lead to reduction of sales
 Failed extensions might diminish core brand s equity.
 Inconsistency extensions carry the risk of diluting important
consumer believes about the product
 If brand extension is adopted continually in companies, it reduces
the resources that are available for significant new product
development

11. Brand associations
 Brand associations are measurable benefits
and attributes assigned to the brand by the
consumers. For example physical product
features, emotional attributes, values,
behaviors and occasions associated with the
use of a brand

12. Types of brand associations
 Brand specific association: a brand is said to
have specific association if it is unique and highly
salient in its product category
 Product category association: sometimes, over
a period a brand might get associated with the
product category in which it is operating rather
than a particular attribute
 Abstract associations: this are the brands that
are build on generalized images

13. Types of Brand extension
 Same product in a different form
 Distinctive taste, ingredient component
 An ingredient component is used to make a
new item in a different category
 Companion product
 When some product are used with others
 Expertise
 Extension into area where consumers
believe the that the original brand has
connotations of special knowledge or
experience.

14.  Unique benefit, tributes or features by the
brand
 Certain brands are identified through their
uniqueness on a particular attributes which is
extended into a related field
 Designer image or status
 Brand extension based on the image or
status

15. THE END..