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Brand value
Brand culture (accepted truth about product) can
greatly enhance brand value
Difference between what a consumer will pay for
branded product and a physically identical
product without brand
Reputational value perceived product quality
Relationship value trusted as a long term partner
Experiential value
Shape experience of
product
Symbolic value
which expresses values
& identities
BRAND ARCHITECTURE
Handling of a large product portfolio
Brand-product relationship
Six models in the brand-product
relationship
The
The
The
The
The
The
product brand;
line brand;
range brand;
umbrella brand;
source brand and;
endorsing brand
Brand Equity
FinancialGoodwill, over a period of
time
What is to be measured
Clear understanding of concept
Consumer way of determining the brand
How to measure
Brand Equity
Brand doesnt exist in isolation it has to be
understood in relation to category
Differential account of brand reflecting in
behavior
The brand image consumer feels, thinks
and experiences(the cognitive and
affective mixes)
relationship/ high
share of category
expenditure
Weak
relationship/Low
share of category
expenditure
stage
Brand
building
blocks
Re
so
na
nc
e
Brand
Jud
gm
ent
s
Perfor
manc
e
Feel
ing
s
Imager
y
Salience
Adapting to Market
Brand
Kernel
Brand
style
Brand
themes
Major Brand
Decisions
Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection
Brand
Brand Sponsor
Sponsor
Manufacturers
ManufacturersBrand
Brand
Private
PrivateBrand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding
Brand
Brand Strategy
Strategy
Line
LineExtensions
Extensions
Brand
Brand Extensions
Extensions
Multi-brands
Multi-brands
New
New Brands
Brands
Brand
Strategy
Brand Name
Product Category
Existing
New
Existing
New
Line
Extension
Brand
Extension
Multibrands
New
Brands
Brand Strategy
Line Extension
Existing brand names extended to new forms,
sizes, and flavors of an existing product
category.
Brand Extension
Existing brand names extended to new product
categories.
Multi-brands
New brand names introduced in the same
product category.
New Brands
New brand names in new product categories.
BRAND EXTENSIONS
Using 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 Product Category
remains constant whereas in brand
extensions product category is a
variable.
BRAND EXTENSIONS
Ponds Cold cream, Toilet soap
Shampoo, Tooth paste, Moisturizing
lotion, Talc & Face wash.
LG
Television,
Refrigerators,
Computer monitors, Microwaves, Air
Conditioners, Washing Machines &
Mobile phones.
Park Avenue Shirts, Shaving cream,
Jeans, Belts, Perfumes, Soap & Razor.
LINE EXTENSION
The 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.
CATEGORY EXTENSION
The parent brand is used to enter a
different product category from that
currently served by the parent brand.
Advantages Of Brand
Extensions
Improve brand image
Reduce risk perceived by
Customers
Permit consume variety-seeking
Advantages Of Brand
Extensions
Clarify brand meaning
Brand
Original
Product
Extension
Products
New
Brand
Meaning
Weight
Watchers
Fitness
Centre
Low-calorie
foods
Weight loss
&
maintenanc
e
Sunkist
Oranges
Vitamins,
juices
Good
health
Kelloggs
Cereal
Nutri-grain
bars,
Special K
bars
Health
snacking
Advantages Of Brand
Extensions
Increase the probability of gaining
distribution and trial
Increase efficiency of promotional
expenditures
Reduce costs of introductory & follow-up
marketing programs (save 40-80%)
E.g. Apple iPods
Avoid costs of developing a new brand
Allow for packaging & labeling efficiencies
Advantages Of Brand
Extensions
Enhance the parent brand image
Bring new customers into brand
franchise and increase market
coverage
Revitalize the brand
Permit subsequent extensions
Disadvantages Of Brand
Extensions
Can fail & hurt parent brand image
Xerox Computers-synonymous with
copiers & no one believed they could
make computers
Can succeed but cannibalize sales of
parent brand
Amul Butter-reduced salt butter
is slowly eating up Amul normal butter
Disadvantages Of Brand
Extensions
Can succeed but diminish
identification with any one category
Can succeed but hurt the image of
parent brand
Disadvantages Of Brand
Extensions
Can confuse or frustrate
consumers
Can encounter retailer resistance
Can dilute brand meaning
Can cause the company to forgo
the chance to develop a new
brand
Evaluating Brand
Extension Opportunities
Define actual & desired consumer knowledge
Identify possible extension candidates
Evaluate potential of the extension candidate
Evaluate potential candidate feedback effects
Consider possible competitive advantages & reactions
Design marketing campaign
Evaluate extension success & effects on parent brand
equity