1. NEW PRODUCTS AND BRAND EXTENSIONSByNavneetAgrawal 2. OverviewNew Product & Brand ExtensionAdvantagesDisadvantagesHow Consumers Evaluate Extensions?

3. the FASCINATING world of brands 4. What Is A BrandA BRAND is symbolic embodiment of all the information connected to a Company, Product or Service.It serves to create associations and expectations from products made by a producer, in the mind of the consumer.The key objective being to create a Relationshi p of TRUST with its consumers.

5. New Product & Brand Extensions 6. New Product Branding DecisionsA new brand individually chosen for the new product.An existing brand name applied in some way.A combination of a new brand with an existing brand.

7. BRAND EXTENSIONSA Brand Extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3)When a new brand is combined with an existing brand (approach 3), the brand extension can also be a sub-brand.

8. BRAND EXTENSIONSAn existing brand that gives birth to a brand extension is the parent brand.If the parent brand is already associated with multiple products through brand extensions, then it may also be called a family brand.

9. Types of Brand Extension 10. LINE EXTENSIONThe parent brand is used to brand a new product that targets a new market segment with in a product category currently served by the parent brand.A line extension often adds a different flavor or ingredient variety, a different form or size, or a different application for the brand.

11. Cokes Line Extension 12. Head &Shoulders Extension 13. CATEGORY EXTENSIONThe parent brand is used to enter a different product category from that currently served by the parent brand.

14. ITCs Category Extension 15. Why Brand Extensions?Leveraging brand equity/value by introduction of logical & complementary new product categoriesE.g HPProduct Innovation to surpass consumer expectationsIt increases awareness of the brand nameIncreases profitability from offerings in more than one product category.(widening the net to catch new consumers.)Its a great way to reinforce a brand, reach out to new customers, create a BUZZ

16. Advantages ofBrand extensions 17. Advantages Of Brand ExtensionsImprove brand imageReduce risk perceived by CustomersPermit consume variety-seeking

18. Advantages Of Brand ExtensionsClarify brand meaning 19. Advantages Of Brand ExtensionsIncrease the probability of gaining distribution and trialIncrease efficiency of promotional expendituresReduce costs of introductory & follow-up marketing programs (save 40-80%)E.g. Apple iPodsAvoid costs of developing a new brandAllow for packaging & labeling efficiencies

20. Advantages Of Brand ExtensionsEnhance the parent brand imageBring new customers into brand franchise and increase market coverageRevitalize the brandPermit subsequent extensions

21. disAdvantages ofBrand extensions 22. Disadvantages Of Brand ExtensionsCan fail & hurt parent brand imageXerox Computerssynonymous with copiers & no one believed they could make computersCan succeed but cannibalize sales of parent brandAmul Butter-reduced salt butter is slowly eating up Amul normal butter

23. Disadvantages Of Brand ExtensionsCan succeed but diminish identification with any one categoryCan succeed but hurt the image of parent brand

24. Disadvantages Of Brand ExtensionsCan confuse or frustrate consumersCan encounter retailer resistanceCan dilute brand meaning Can cause the company to forgo the chance to develop a new brand

25. When are Brand Extensions Appropriate?When Prior Brand equity existsConsumer must see some connection between the proposed extension and the parent brand.The proposed extension contributes to and reinforces the overall brand equity of the parent brand.

26. How Consumers Evaluate Extensions 27. Conditions For Evaluating Consumers Brand ExtensionConsumers have some awareness & positive associations about the parent brandAt least some of these positive associations will be evoked by the brand extensionNegative association are not transferred from the parent brandNegative associations are not created by the brand extension

28. Define actual & desired consumer knowledgeIdentify possible extension candidatesEvaluate potential of the extension candidateEvaluate potential candidate feedback effectsConsider possible competitive advantages & reactionsDesign marketing campaignEvaluate extension success & effects on parent brand equityEvaluating Brand Extension Opportunities

1. LINE & BRAND EXTENSIONS 2. LINE EXTENSIONSThe product line is now far more representative of customers varying quantity needs.It suggests the presence of usage segmentation. Customers differs in terms of their usage quantities.The brand has to fill the whole spectrum with products as per the needs of various segments.

3. ExampleBisleri is the pioneering brand in the mineral water category. Originally, Bisleri used to come in a one litre bottle.But recently, Bisleri has exhibited a spate of innovations.The brand launched bottles of different sizes and quantities.The Bisleri portfolio now includes one litre, 1.2 litre, 1.5 litre and 5 litre bottles.

4. Line Extension strategies Bisleri Product Sizes 1.1 ltr Bisleri .5 ltr Bisleri Bisleri Bisleri 1.2 ltr 1.5 ltr 5 ltr

5. Colour Pantene Pantene Pantene Etc., White Black PinkFlavours Rasna Rasna Rasa Rose , Orange Mango etcIngredient Colgate Colgate Colgate gel Herbal Salt etc.,

6. Form Vim Bar Vim Liquid Vim Powder 7. According to Gautam Singhania, Chairman and Managing Director, Raymond India: "Raymond aims to acquire a dominant position in the apparel sector in the country. We believe that venturing into exclusive stores for our apparel brands will make our brands stronger and give the right impetus to our growth plans.We have enhanced our offerings under all our apparel brands to provide a complete wardrobe solution."

8. "Men today want different solutions for different occasions - formalwear, relaxed work wear, evening wear, club wear, traditional wear, travel wear as well as sportswear. Our brands Park Avenue, Parx and Manzoni, have different categories to cater to this need.Thus, all our brands offer a solution to changing mens fashion needs at different price points," says Shreyas Joshi, President, Raymond Apparel.

9. Why Line Extensions?In most of the product categories including fast moving consumer goods, consumer durables and services, line extension has been the name of the game.It is an expansionist move.The firms seem to seek growth more vigorously.

10. Nine prominent reasonsCustomer SegmentationCustomer need for varietyPricing BreadthCapacity UtilizationQuick gainsCompetitive ReasonsTrade DemandsCounter CompetitionImage Benefits

11. Line Extension RisksThere are several dangers associated with line extensions.Line Confusion - Marketers sometimes add products to their line without

sound logic and reasoning, without any clear role and goal. This may confuse the customers and the retailers and will affect the brands owner company in the long run.

12. Line Extension RisksEncourage Variety seeking Brand loyalty is every marketers dream. By line extension, customers practice and become the habitant of variety seeking. Hence it influence brand switching behaviours. The loyalty is thus weakened.

13. Line Extension RisksSuccess Myopia An idea may be a grand enough to be converted into a full-fledged independent brand. But the lure of extension seems to be so strong that the ideas are brought into the market as line extensions. This implies loss of a winning asset in the long-term.

14. Line Extension RisksStrained relations - When the lines expand, marketers tend to pressurize their trade partners such as wholesalers and retailers to carry the complete line in accordance with their wishes. The pressure appears to be applied more intensely at the retail level. The marketers seek adequate shelf space, promotion and information. But at the retailers end, it brings confusion and chaos. The result is the strained relations between the marketer and the retailer.

15. Line Extension TrapWhy do firms jump on to line extension bandwagon?When customers prefer a brand, they would be just as willing to buy a different product carrying the same name.What appears to be logical to the managers performing these adventures tends to be illogical in the perception of customers.This is the reason why line extensions do not create mega successes.

16. Line Extension Trap.Line extensions do not work because they tend to go against the fundamental aspect of positioning.The core brand holds a strong position inside the prospects mind.Line extensions tend to educate customers that product and brand are two different things.It is a fallacy that a brand is just a name that can be put on any product.This is a great mistake. It undermines and destroys the brand in a prospects mind.

17. BRAND EXTENSIONSUsing an existing brand name to promote a product in a different category, is Brand Extension.The key difference between line and brand extension is the product category.In line extension the pdt. Category remains constant whereas in brand extensions product category is a variable.

18. EXAMPLEPonds - Cold cream, Toilet soap Shampoo, Tooth paste, Moisturising lotion, Talc & Face wash.LG Television, Refridgerators, Computer monitors, Microwaves, Air Conditioners, Washing Machines & Mobile phones.Park Avenue Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap & Razar.

19. Why Brand Extension?Cost of New launchesPromotional EfficiencyConsumer BenefitsFeedback effectsReturns

20. Types of ExtensionsProduct form extension A product launched in a different form usually means line extension, but if a different product form constitutes an entirely different product category.Example:Amul milk Amul Condensed milkReal Juices Real Juice Concentrate

21. Types of ExtensionsCompanion Product The idea here is to capitalise 0n product complementarity. The consumer may view both the products jointly.Example : Colgate Dental Colgate Cream Tooth Brush Gillette Gillette Gillette Razors Shave forms After Shave

22. Customer FranchiseA marketer may extend a product range in order to meet the needs of a specific customer group. J&J J&J J&J J&JJ&J Baby Baby Baby BabyBaby Oil Cream Shampoo Diapers Talc

23. Company ExpertiseBrand Extensions often come in the forms of different product category introductions using a common name but emanating from a common expertise pool. This strategy is particularly seen in Japanese companies. Honda Honda Honda Lawn scooters Cars movers

24. Brand Distinction Many brands achieve distinction in the form of a unique attribute, benefit or feature which gets uniquely associated with the brand. For instance, Parachute may have expertise of coconut nourishment in customers minds over time. This would give Marico Industries, the brand owner, the opportunity to launch a variety of products exploiting this distinction. Parachute Hair Cooking Baby Baby Shampoo Cream Oil Oil Soap Oil

25. Brand Image or Prestige A brand extension may involve a foray into unrelated product categories based on a brands exclusive image or prestige value.Steel, Automobile, Heavy Vehicles, Watches, S/W devpt. Training etc .,

26. Distinctive Taste, Ingredient or ComponentA brand may develop equity based on any and / or combination of taste, ingredient or component. Then the marketers can make entries into unrelated product categories capitalising on these properties. Nescafe Nescafe Nescafe Nescafe Nescafe Milk Cold Coffee Chocolate Biscuits Supplement Coffee

27. Brand Extentability

28. Extensions involve transfer of associations from the parent brand to the extension.The brand extendability depends on its character.The brands can be classified into 5 types through extendability.

29. Five forms of brandsThe Product Brand - it is a situation where there is very little difference between the brand and the product.The brand is used as an identity of the product.Example : vicks,

30. Form 2 Formula BrandFormula means a set procedureA brand which comes in the formula category simply implies that a standard procedure has been used to make the product.Example : cooking oil, pickles etc.,

31. Form 3 Know how brandKnow how is an expertise that a firm develops in a specialized area of activity.Example : nokia is known for user friendly.Amul has developed its brand as an expertise in milk processing.

32. Form 4 Interest brandA brand may be defined by its centre of interest. It may reflect its core spirit.Example Gillette maintains its focus on mens grooming in all its brands.Logo is the best a man can get which creates the interest among the target audience.Whirlpool home makerNike winning to be on the cutting edge.

33. Form 5 - PhilosophyThe brand at this level acquires more intangible character and orientation.The philosophy transforms its products in a realm altogether different from its physical reality.Example : Parker pen, De beers diamond

34. Forms of brand extendabilityProduct Brand Formula Brands Know howPillsburry Mothers Atta brand Interest Recipes Pickles lime, Brand mango, Bajaj Philosophy mixed Disney Brand Irons, Fans, coolers, Toys, Cartier mixers etc., Theatre, Theme park, Watches, movies, etc jewellery, Bags, pens

35. Extensions.Extensions are not simple as they appear to a layman.Consumers reject extensions when they do not make sense. Brand extension is not a physical act of merging two products.It is a tough process involving marrying two cognitive or perceptual concepts in order to create a consistent entity. Therefore, it must begin with exploring the brand in a prospects mind.

36. Exploring the brand involves seeking answers to the following questions. What is a brands awareness level? What are its recall and recognition levels? What are different attributes associated with a brand? What benefit associations are connected with a brand? What are a brands personality associations? What are the symbols associated with the brand? What are a brands user associations? What is the perceived essence of the brand? What is a brands philosophy?

37. Strength of Associations - Ponds PONDS Talc Body Cream Feminine Floral care Room Nail Freshner, Body Beauty cream,-Body Talc Conditioning enamels soaps, lotion,Talc for cream, Lip colours Fragrance, Body oil, cleansingSpecial etc shampoo, creams cream, etc occasions etc

38. Making an Extension successful Aaker & Keller proposed certain assumptions about consumer behaviour which are fundamentally responsible for the success of a brand extension. The parent brand enjoys positive beliefs and favourable attitude in customers memory. It is these pre-existing beliefs and attitudes which help in the formation of positive beliefs and favourable attitude toward the brand extension. The negative associations are not transferred to the brand extensions, also these are not created by the brand extension.

39. Questions for AssignmentHighlight atleast five brands of various product category and find out the extension opportunities of those brands.Find out which brand can be extended far from its present product, and which can move just above the extension boundary.

To make brand relevant One way to reposition a product or service in the mind of target market is to make it relevance. Brand relevance can be defined as the alignment of brands identity, attribute and personality with the needs of target group. The reason behind making brand relevant constantly is because of changing needs of the society and profusion of alternatives. Brand relevance entails keeping brand current and significant in the mind of target group. It also encompass ensuring that brand resonate and connect to consumers emotionally. To enhance brand identity Another way to reposition a brand is to enhance its identity in the market place. Brand identity is the visible element of a brand such as colors, logo, design, symbol and name that distinguishes a product or services in the mind of consumer. Identity enhancement is done especially if there is no consistency between brand interfaces and consumers. Redefinition of identity is also done when two or more company is merging together. Brand identity is strategic or substance oriented in nature. Brand identity begins with analysis of marketing environment and ends with using research data to create relevant brand portfolio. To enhance brand personality Organizations reposition brand personality especially when they need to solidify customer loyalty and engagement. According to David Aaker, author of the book Building strong brand brand personality can also be defined as the set of human characteristics associated with a given brand. It is also the personification of intangible and tangible traits of a brand. Brand personality projects beliefs and core value of product or services. It is a framework that creates passion and affinity for consumers. Types of brand personalities include trustworthiness, sincerity, strong, reliable, consistency, sophistication, and emotional. To enhance brand experience Another way to reposition a brand is to enhance consumers experience in order to gain long term competitive advantage. Brand experience encompasses aligning product or services to end-user mood, needs, desires, and behavior. It also involves using stimuli to invoke feelings, sensation and responses. A memorable and unforgettable experience is created by being insightful, remarkable, valuable, dynamic, relevance and accessible enough to unravel gaps and deliver satisfaction incessantly. Customers physical & emotional expectations are enhanced by creating great experience at all faucet of interaction. To enhance brand essence Periodically, organizations enhance the essence of their brand by associating brand with meaningful and relevant substance. Brand essence is a pathway for adding value and equity to a product or services continuously. The concept of brand essences is also defined as a phrase or statement that contains emotional connection or impression about product or services experience. It is the DNA or core characteristic that distinguishes a brand

from other alternatives. Illustrations of traits associated with brand essence include unique, relevance, scalable, and sustainable.

To enhance brand image/reputation Another Way to reposition the image of a brand is through its appeal, fame, and value. Business dictionary defines brand image as the impression in the consumers mind of a brand total personality. Brand image can be also defined as what a brand stand for or set of specific belief about brand in the mind of consumers. It deals with readjusting the perception of consumers on brand. It is tactical or appearance oriented in nature. Various ways to enhance brand image is through advertising, promotion, word of mouth, customer service and other touch points. To adjust brand association Repositioning of brand association is done by organizations to increase product or service appeal to core target group. Business dictionary defined brand association as the extent to which a particular brand calls to mind the attribute of a general product category. It can also be defined as the meaning, attributes, image associated with a brand in the mind of consumers. Associating brand with enchanting features can solidify loyalty and turn consumers to evangelist or advocates. Various brand association include customers contact, advertisements, character, word of mouth, celebrity, category, geography, end-users, slogan, intangibles, products, extensions, and displays. To emphasize on brand attribute Sporadically, factors like unstable market, short product life cycle, technological advancement, and alternative can make the attribute of a product or services irrelevant. Repositioning of brand attribute is done by emphasizing on attribute that matter most to consumers or target group. Brand Attributes is defined as the properties or characteristics of a product or services. It can also be defined as the emotional as well as functional association consumers confer to a brand. Types of attribute include cost, friendly, authentic, innovative, prestige, and reliability. Brand differentiation Organization indulges in differentiation strategy when they need to establish a strong identity in the mind of consumers. Business dictionary defined brand differentiation as the result of effort to make a product or service stand out as a provider of unique value to customers in comparisons with its competitors. Chosen point of differentiation need to be significant to target market, not used by competitors and supported by organizational resources. Types of differentiation include components, performance, experience, market leader, convenient, innovation, pioneer, essential, expertise, and responsiveness.

Xerox's Brand Repositioning Challenge

Does acknowledging a legacy business give it too much visibility?
By: Christa Carone Published: March 12, 2013

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CHRISTA CARONE

I'm a bit of a media junkie. I watch, read and listen to business news with an eye toward what's breaking and with an interest in how other brands are marketing. My media habits also give me a different perspective on the marketing I lead at Xerox. When our spots appear on CNBC's Squawk Box, I'm watching like any other business person. It's part of my daily morning routine, and depending on other distractions (like my 9-year-old daughter asking if she can wear lipstick to school. That would be a "No."), I'm making mental notes of what I'm seeing. It was that real-time perspective that convinced me it was time to change the creative approach to our advertising.

Two and a half years ago, we launched a campaign that put our customers front and center, giving us the opportunity to talk about how we're behind the scenes helping them be successful. It was well-regarded creative, featuring P&G's Mr. Clean, the Target dog, the Michelin Man, the New York Mets' Mr. Met, as well as bellmen from Marriott and flight attendants from Virgin America. Many other clients reached out asking if they could be in the campaign. It was award-winning, clever, memorable creative that cut-through traditionally stale B2B marketing. But it was a story told in chapters. And to get the entire plot, you really needed to absorb the entire book.

You see, Xerox is going through a huge transformation. After acquiring Affiliated Computer Services -- the largest diversified outsourcing company in the world and likely one of the biggest companies you've never heard of -- in 2010, we quickly shifted from the document company to one that generates more than half its revenue from business services, like operating call centers, processing insurance claims, handling automated toll payments, like EZ Pass, and more. To start challenging the perception of Xerox as just a printer and copier company, we dialed up the messaging on all the phenomenal clients who outsource their back-office functions to us.

There's a spot about how Virgin America trusts Xerox to manage its call center operations, another about how Michelin depends on Xerox for assistance with finance processing. Solid messages delivered through clever creative, garnering high recall rates. But as our media budgets came under pressure, so too did our ability to deliver a steady cadence of all the chapters that told one big transformation story.

As I watched each morning through the lens of a harried professional with one ear on CNBC and another listening to the woes of a tween, I couldn't quite make sense of why Xerox -- a brand we all think we know so well -- was talking about call centers. It became clear that we needed to draw the connection between who we were and who we are. We needed to get back to the basics of explaining our purpose and giving people a reason to believe that the copier company could stand for so much more than copies.

That's why our latest campaign, which broke in February, acknowledges our past, even embraces it, while helping people connect the dots to today's Xerox. It's a no-nonsense, straight-talk effort. One 30-second spot from Young & Rubicam opens with a woman standing in front of -- yes! -- a copying machine. "When I say Xerox, I know what you're thinking," she says, then prints an image of a transit map. "Transit fares, as in the 37 billion transit fares we help collect each year." Another commercial features the same woman proclaiming that revolutionizing an industry is a hard act to follow, and then explaining some of the breadth and scale of services offered by Xerox.

Our new approach didn't come without some internal frustration and healthy debate. Is acknowledging the deep perception around our legacy business giving it too much visibility when we're trying to shift those perceptions? Ultimately, we stopped resisting it, started embracing it and -- through our latest ads -- started leading with it.

Chester Carlson, the patent attorney who invented the first Xerox Model A photocopier, did so because he wanted to make the laborious task of filling out patent applications easier. The connective tissue between Xerox then and Xerox now is simplicity -- making complicated processes easier. We're just getting started, but our creative is working much harder than before to share the big picture in simple, believable ways.

The lesson for us -- now featured in our storytelling -- is that acknowledging our purpose makes it OK to give a nod to our heritage even as we grow beyond it.