BRAND EXTENSION

Brand extensions can endanger brand

versus
Brand extensions are an important brand growth
strategy

Group 1 :
Amirul Faiz
Abd. Majid
Ameeruz Kamal
Tengku Mohd. Faizal
Azman
Suzilawati
Normazleza
 Brand

 An identity labeled to a product

 Created to foster long term
chained connections between
company and customers.
 Brand Extension

A part of brand management to

diversify and leveraging the existing
brand by entering into new product
category by new product
development.
 Using the corporate name combine
with individual product name
 Called the sub branding policy
 The company name legitimizes
and the product name
individualizes the new product.
Why is brand extension important to
Nokia?
 hone existing and build new

competitive advantages for

continued leadership in the mobile
communications market amid
increased competition from rivals
 regain market share
 How does Nokia increase its
competitiveness in the
market?

 broadening its product portfolio – 40

new devices to choose from.
 Variety in Nokia's offering will be
enriched in 2005 when approximately
two-thirds of Nokia's mobile device
launches are targeted to have cameras
and more than half are expected to be
clamshells, slides and other non-mono
block models.
 How does Nokia increase its
competitiveness in the
market?

 to get the most compelling products to

market at the right time
 meeting customer needs in mobile
devices and mobile infrastructure –
support software customizations.
 to better capture potential upside in
high-demand situations Nokia intends to
further align its demand-supply
network.
 Successful Brand
Extension

Thus brand extension is not only

important to gain the competitive
advantages of the market, it is also
vital
for the sustainability of the brand or
company.
Failure No.1:
 In 1975, launched a computer

product, Xerox Data Systems,

which had been researched at
Xerox PARC.
 It failed disastrously

 Xerox lost US $85 million.

Failure No.2 – 4 years later,
 Early version of a fax machine called

a Telecopier.
 Another disastrous failure

 Xerox is associated almost

exclusively with copier machines.

 Lesson from Xerox

 It’s vital to know who you are.

 Nobody knows the future.
 Brands are bigger than products.
Example
Example
 Conclusions

 Brand extension is necessary for

brand growth strategy
 Requires proper market analysis
Thank You