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FARSANA
M140005MS
Brand extension
“Brand extension is using the leverage of a well known brand name in one
category to launch a new product ...
Two general categories
 LINE EXTENSION
Marketers apply the parent brand to a new product that targets a new
market segmen...
Top brand extensions of 2013
0 Titan Skin Perfumes
0 Parle Café Cuba
0 McCafe
0 Park Avenue Beer Shampoo
0 MTV Helmets
0 D...
Advantages of brand extension
 It makes acceptance of a new product easier.
0 It increases brand image.
0 The risk percei...
Advantages of brand extension
 Consumer knowledge: The remaining strong brand used to “promote a new
product” makes it le...
Disadvantages of brand extension
 Brand extension in unrelated markets may lead to loss of reliability if a
brand name is...
Disadvantages of brand extension
If the brand extensions have no advantage over
competitive brands in the new category, t...
Success story
FABINDIA
0 In 1958, Bissell discovered was a village-based industry with a
profusion of skills hidden from the world.
0 De...
FABINDIA
0 Over the years the focus of Fabindia’s marketing shifted from exports to the local
Indian retail market. What s...
Failure story
PONDS
0 The first Pond's product was created in 1846, since then the brand has
flourished in Unilever's fifth most profita...
PONDS
0 By the twentieth century, the company's main strategy
was geared towards selling cosmetics products, and so
the "P...
0 Popular brand of face cream and powder
0 Extended to Oral care
0 .In a blind test environment, people were not able to d...
Thank you
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brand extension

  1. 1. FARSANA M140005MS
  2. 2. Brand extension “Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category” 0 A brand extension occurs when a firm uses an established brand name to introduce a new product. 0 When a new brand is combined with an existing brand, the brand extension also be a sub-brand. An 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.
  3. 3. Two general categories  LINE EXTENSION Marketers apply the parent brand to a new product that targets a new market segment with in a product category the parent brand currently serves. 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 Marketers apply the parent brand to enter a different product category from the one it currently serves.
  4. 4. Top brand extensions of 2013 0 Titan Skin Perfumes 0 Parle Café Cuba 0 McCafe 0 Park Avenue Beer Shampoo 0 MTV Helmets 0 Dove Elixir 0 Woodland skincare and equipment 0 Google Eye Glass 0 NIKE Eye Glass, Golf Equipment
  5. 5. Advantages of brand extension  It makes acceptance of a new product easier. 0 It increases brand image. 0 The risk perceived by the customer reduces. 0 Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other. 0 Cost of developing new brand is saved. 0 The expense of introductory and follow up marketing programs is reduced.
  6. 6. Advantages of brand extension  Consumer knowledge: The remaining strong brand used to “promote a new product” makes it less critical to create “awareness and imagery”.  Consumer trust: The existing well-known-strong brands represent a promise –of quality, useful features etc. - for the consumer. A satisfied customer by an extension will be more willing to repurchase the same brand.  Defensive strategy: An extension can prevent competitors from gaining or exploiting a foothold in the market and can be “worthwhile even though it might struggle”.
  7. 7. Disadvantages of brand extension  Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work.  There is a risk that the new product may generate implications that damage the image of the core/original brand.  There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will compensate.
  8. 8. Disadvantages of brand extension If the brand extensions have no advantage over competitive brands in the new category, then it will fail.  Cannibalization: extensions can cannibalize the existing products of the brand when there are positioned in a close market. It means the extensions sales are increasing while those of the existing brand’s products are following the Opposite curved.
  9. 9. Success story
  10. 10. FABINDIA 0 In 1958, Bissell discovered was a village-based industry with a profusion of skills hidden from the world. 0 Determined to showcase Indian handloom textiles while providing equitable employment to traditional artisans, Bissell established Fabindia in 1960 in order to fuse the best aspects of East/West collaboration. 0 Fifteen years later the first Fabindia retail store was opened in Greater Kailash, New Delhi with a range of upholstery fabrics, durries and home linens. By the early eighties, they started producing garments made from hand woven and hand block printed fabrics.
  11. 11. FABINDIA 0 Over the years the focus of Fabindia’s marketing shifted from exports to the local Indian retail market. What started as an export house has today become a successful retail business presenting Indian textiles in a variety of natural fibers, and home products including furniture, lights and lamps, stationery, home accessories, pottery and cutlery. Extending this partnership to the farmers in rural areas, Fabindia launched its organic food products range in 2004. Fabindia Sana, the company’s authentic body care products range is also being launched at all Fabindia outlets. 0 Today they have retail outlets in all major cities of India – 85 at last count – in addition to international stores in Rome, Italy; Dubai, UAE and Guangzhou, China.
  12. 12. Failure story
  13. 13. PONDS 0 The first Pond's product was created in 1846, since then the brand has flourished in Unilever's fifth most profitable Personal care property globally. In 1886, Pond's was re launched as Pond's Extract and in 1914 Pond's Cold Cream and Vanishing Cream marked the brand's evolution to a beauty icon. By the mid 1920s it was reflecting this positioning with endorsements by princesses, Hollywood stars and society beauties. Its stylish image was underpinned by guarantees of product delivery and an understanding of woman's beauty routines and needs.
  14. 14. PONDS 0 By the twentieth century, the company's main strategy was geared towards selling cosmetics products, and so the "Pond's Vanishing Cream" and the "Pond's Cold Cream" were created, marking the entrance of Pond's products into the facial care industry. Today Ponds is sold around the world. Its strengths are in Spain, India, Japan and Thailand.
  15. 15. 0 Popular brand of face cream and powder 0 Extended to Oral care 0 .In a blind test environment, people were not able to differentiate ‘Ponds’ toothpaste from that of ‘Colgate’. 0 To consumers the brand Ponds was nothing but fragrance & a consumer product for external application only; this did work brilliantly with soaps & creams however the attributes for toothpaste are taste. consumers thus when Ponds ventured into oral health care, it was ignored. Consumers simply refused to acknowledge its presence leading to a sudden but painful death of a brand
  16. 16. Thank you

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