MODULE 8 INTRODUCING AND NAMING

NEW PRODUCTS AND BRAND EXTENSIONS • Permit consumer variety seeking

– Part I ADVANTAGES OF EXTENSIONS
GENERAL STRATEGIES FOR (CONT.)
LEVERAGE THE BRAND ESTABLISHING A CATEGORY • Provide feedback benefits to parent brand
• Firms are seeking to build “power” or “mega” TAUBER’S FRANCHISE—EXTENSION • Clarify brand meaning
brands that establish a broad market footprint, • Introduce the same product in a different form. • Enhance the parent brand image
appealing to multiple customer segments with Example: Ocean Spray Cranberry Juice • Bring new customers into brand franchise and
multiple products all underneath the brand Cocktail increase market coverage
umbrella. • Introduce products that contain the brand’s • Revitalize the brand
distinctive taste, ingredient, or component. • Permit subsequent extensions
ANSOFF’S GROWTH SHARE MATRIX Example: Philadelphia cream cheese salad DISADVANTAGES OF EXTENSIONS
dressing • Can confuse or frustrate consumers
• Introduce companion products for the brand. • Can encounter retailer resistance
Example: Coleman camping equipment • Can fail and hurt parent brand image
• Introduce products relevant to the customer • Can succeed but cannibalize sales of parent
franchise of the brand. Example: Gerber brand
insurance • Can succeed but diminish identification with
• Introduce products that capitalize on the firm’s any one category
perceived expertise. Example: Honda lawn • Can succeed but hurt the image of the parent
mowers brand
• Introduce products that reflect the brand’s • Can dilute brand meaning
distinctive benefit, attribute, or feature. • Can cause the company to forgo the chance
Example: Lysol’s “deodorizing” household to develop a new brand
cleaning products
BRAND EXTENSIONS • Introduce products that capitalize on the UNDERSTANDING HOW CUSTOMERS
• When a firm uses an established brand name distinctive image or prestige of the brand. EVALUATE BRAND EXTENSIONS
to introduce a new product Example: Calvin Klein clothes • Managerial assumptions
• Brand extension classification • Consumers have some awareness of and
• Line extension ADVANTAGES OF EXTENSIONS positive
• Using a sub-brand to target a new market • Facilitate new product acceptance associations about the brand in memory
segment within the same product category • Improve brand image • At least some of these positive associations
• Category extension • Reduce risk perceived by customers are evoked by the brand extension
• Using the parent brand in a different • Increase the probability of gaining distribution • Negative associations are not transferred from
product category and trial the parent brand
BRAND EXTENSIONS • Increase efficiency of promotional • Negative associations are not created by the
expenditures brand extension
• Reduce costs of introductory and follow-up
marketing programs
• Avoid cost of developing a new brand
• Allow for packaging and labeling efficiencies
CREATING EXTENSION EQUITY

1. Salience of parent brand associations in the

minds of consumers in the extension context • Sunkist orange soda the optimal marketing program to launch the
• Colgate toothbrushes extension, and leveraging secondary
2. Favorability of any inferred associations in • Mars ice cream bars associations.
the extension context • Arm & Hammer toothpaste • Evaluate extension success and effects on
• Bic disposable lighters parent brand equity
• Aunt Jemima pancake syrup
3. Uniqueness of any inferred associations in • Honda lawn mowers WHEN ARE BRAND EXTENSIONS
the extension context APPROPRIATE?
UNSUCCESSFUL CATEGORY • If they see some basis of “fit” or similarity
EXTENSIONS between the proposed extension and parent
CONTRIBUTING TO PARENT • Campbell’s tomato sauce brand
BRAND EQUITY • LifeSavers chewing gum • The major mistake in evaluating extension
• Cracker Jack cereal opportunities is failing to take all of
• How compelling the evidence is concerning • Harley Davidson wine coolers consumers’ brand knowledge structures into
the corresponding attribute or benefit • Hidden Valley Ranch frozen entrees account.
association in the extension context • Bic perfumes • Often, marketers mistakenly focus on only one
• How relevant or diagnostic the extension • Ben-Gay aspirin brand association and ignore other potentially
evidence is concerning the attribute or benefit • Kleenex diapers important brand associations in the process.
for the parent brand • Levi’s Tailored Classics suits
• How consistent the extension evidence is • Nautilus athletic shoes
with the corresponding parent brand • Domino’s fruit-flavored bubble gum
associations • Smucker’s ketchup
• How strong existing attribute or benefit • Fruit of the Loom laundry detergent
associations are held in consumer memory for
the parent brand EVALUATING BRAND
EXTENSION OPPORTUNITIES
• Define actual and desired consumer
SUCCESSFUL EXTENSIONS knowledge about the brand
• Must create points-of-parity and points-of • Identify possible extension candidates
difference in extension category • Evaluate the potential of the extension
• Must recognize competitive reactions candidate
• Must enhance points-of-parity and points-of • The likelihood that the extension will realize
difference of parent brand the advantages and avoid the disadvantages of
• Must maximize the advantages and minimize brand extensions. As with any new product,
the disadvantages of brand extensions analysis of consumer, corporate, and
competitive factors can be useful
SUCCESSFUL CATEGORY
EXTENSIONS
• Ivory shampoo and conditioner
• Vaseline Intensive Care skin lotion
EXTENSION OPPORTUNITIES
• Design marketing programs to launch MODULE 8
• Hershey chocolate milk extension MANAGING BRANDS OVER TIME - Part II
• Jell-O pudding pops • Building brand equity for a brand extension
• Visa traveler’s checks requires choosing brand elements, designing
REINFORCING BRANDS
• Generally, we reinforce brand equity by
marketing actions that consistently convey the REINFORCING BRANDS
meaning of the brand to consumers in terms
of brand awareness and brand image. • Protecting sources of brand equity
• Although brands should always look for
MANAGING BRANDS OVER TIME potentially powerful new sources of brand
• Effective brand management requires taking a equity, a top priority to preserve and defend
long-term view of marketing decisions those that already exist.
• Any action that a firm takes as part of its
marketing program has the potential to change
consumer knowledge about the brand. TIME REINFORCING BRANDS
• These changes in consumer brand knowledge
from current marketing activity also will have • Fortifying versus leveraging
an indirect effect on the success of future • Trade-off
marketing activities.

MANAGING BRANDS OVER TIME REINFORCING BRANDS

• Fine-tuning the supporting marketing program

REINFORCING BRANDS
• Maintaining brand consistency
• Consistent marketing support in amount and
nature
REVITALIZING BRANDS

• Expand the depth and/or breadth of

MANAGING BRANDS OVER awareness by improving consumer recall and
recognition of the brand during purchase or
REINFORCING BRANDS consumption settings
• Improve the strength, favorability, and
• Maintaining brand consistency uniqueness of brand associations—either
• Retro branding existing or new—making up the brand image
 • Convey new information or signal that the • Tradeoffs in their marketing efforts between
brand has taken on new meaning attracting new customers and retaining existing
ones
IMPROVING THE BRAND IMAGE • Firms must proactively develop strategies to
• Go “back to basics” and tap into existing attract new customers, especially younger
sources of brand equity (e.g., Harley ones.
Davidson) • Retiring brands
• Product strategy
• Pricing strategy
• Channel strategy
• Communication strategy
• Create new sources of brand equity (e.g.,
Mountain Dew)
STRATEGIES TO REVITALIZE BRANDS
• Expanding brand awareness ENTERING NEW MARKETS
• Breadth challenge • One strategic option for revitalizing a fading
• Improving brand image brand is simply to more or less abandon the
• Repositioning the brand consumer group that supported the brand in
• Changing brand elements the past to target a completely new market
• Entering new markets segment.

EXPANDING BRAND AWARENESS

• Increasing usage
• Increasing the level or quantity of
consumption
• Increasing the frequency of consumption
• Identifying new or additional usage
opportunities
• Communicate appropriateness of more
frequent use in current situations
• Reminders to use
• Identifying new and completely different ways
to use the brand

IMPROVING THE BRAND IMAGE ADJUSTMENTS TO BRAND PORTFOLIO

• Repositioning the brand • Migration strategies
• Establish more compelling points of difference • A corporate or family branding strategy in
• In some cases, a key point of difference may which brands are ordered in a logical manner
turn out to be nostalgia and heritage rather could provide the hierarchical structure in
than any product-related difference. consumers’ minds to facilitate brand migration.
• Other times we need to reposition a brand to • Example: BMW with its 3-, 5-, and 7-series
establish a point of parity on some key image numbering systems
dimension. • Acquiring new customers
• Changing brand elements