Brand extension is the "use of established brand names to enter new product categories or classes" (Keller & Aaker,

1992, p. 35). The product-related associations refer to the functional and experiential attributes of the existing products of the brand/category. The non-product related associations comprise the symbolic benefits stemming from the brand name (such as human personality dimensions, prestige etc). On the other hand, the affective component refers to the feelings associated with a brand name or a product category (Boush & Loken, 1991; Loken & John, 1993). When the new extension is launched, consumers evaluate it on the basis of their attitude towards the parent brand and the extension category. If a consumer does not know the parent brand and its products at all, she will evaluate the new extension solely on the basis of her experience with the extension category (Sheinin, 1998). In real marketplace conditions though, consumers are exposed to a host of information about the extension through different media. Their attitudes towards the extension are sensitive to competitor activity, retailer-level decisions as well as other information sources like press, consumer reports and word-of-mouth.

Brand Update : Horlicks Extends to Breakfast Segment

In pursuit of the stated objective of making Horlicks a megabrand, GSK announced the launch of Horlicks Oats. According to ET, packaged, ready-to-cook oats market is worth around Rs 200 crore and growing at 25% . Horlicks expects to leverage its equity in the new product category also. From healthy malt drink, Horlicks has come a long way. Now the brand has become so big and diversified, there is no point in criticizing these extension. ( one can only pray for its survival). Regarding the brand extension towards oats, the existing health based brand association of Horlicks will be a huge advantage . According to academic researches, consumers evaluate brand extension on the basis of these parameters Brand loyalty towards parent brand Confidence of consumers about the competence of parent brand in the new category Perceived quality Positive brand associations Perceived fit between parent brand and the extensions Attitude of consumers towards the brand.

For Horlicks, because of its rich heritage and product performance, it scores well in most of the above parameters. Hence the chances of consumer trial will be high compared to any new brand.Brand dilution will happen for sure since the brand is trying to leverage its expertise in too many categories. There are also chances of the oats to be viewed as a Kid's product since Horlicks in India traditionally targeted kids. This kid's association may prevent many adults to switch to the brand. However Horlicks will be addressing this issue in the launch ad. My feeling is that Horlicks oats will be targeting the family as a unit rather than adults.

Brand Update : Parachute Extends to Skincare

In a significant move, Parachute - the flagship coconut oil brand from Marico has extended itself to skincare. Recently Parachute launched its new brand extension- Parachute Advansed Body Lotion. This is a major brand extension from Parachute since its After Shower hair cream launch. According to newspaper reports, this category extension is to de-risk the brand's dependence on the hair oil segment . The move to launch body lotion also marks a significant shift in the brand's positioning and its image. Parachute now will have to shed its close association with hair oil segment and move to another set of brand attributes and image. Parachute is currently running its launch campaign across various media. Watch the Parachute ad here : Parachute Body Lotion The ad is very sensuous in nature trying to convey the message of soft skin that tempts you to touch it again and again. The brand extension has used the tagline " Love Dobara ". The idea and the theme of the campaign is not new. The concept of a husband rediscovering his love for his wife has been used many a times in Indian advertising for various product categories. Parachute body lotion's campaign hence was not able to make any creative distinction in the launch campaign. The ad also raised some eyebrows among certain consumers owing to the overdose of sensuality in this ad. The use of hedonistic advertising is becoming very popular in the personal care category in recent times. The brand has retained its focus on coconut based ingredient in this product. The brand is claiming to have 100% natural moisturizers promising a smooth skin. More than the promise, Parachute Advansed Body Lotion is using its price to lure the consumers to it. The brand is priced very competitively at Rs 99 for 250 ml which makes it one of the most value-for-money body lotion available in the market. I think the brand has priced itself to success . Smart Pricing + Existing Brand equity will ensure that consumers will try out this product for sure. Body Lotion segment is witnessing lot of activity these days with many brands vying for consumer attention. Consumers are also waking up to this product category and the frequency of usage also has increased. Earlier, these products were predominantly used in winter season.

Marico has used Parachute Advansed ( sub-brand) to launch value added products to the brand line of Parachute. While parent brand Parachute is being used in the pure coconut oil category, Marico has launched many variants under the Parachute Advansed brand-line. The launch of body lotion has made Parachute brand an umbrella brand endorsing a range of products in various product categories like - Skin care, hair oils, hair care , cooling oil etc. This also necessitates a shift in the overall brand positioning of Parachute brand. Marico may be looking at making Parachute a personal care brand in future. The brand should then come out of its perception of a hair-care brand. It will be interesting to see how Marico makes this transformation for Parachute. The brand had earlier ran a campaign " Gorgeous Hamesha " for Parachute. The tagline seems very apt for a transformation to a personal care brand for this brand.