Brand Extensions: Applying the Rules in a Digital World
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Brand extension rules include: aligning the perceived brand values in the new category; organisational capabilities for stretching and supporting the activity; growth potential for the brand / company. Today, a new type of brand extension is becoming very common: extending into the digital sphere. The presentation examines how brands successfully extend into digital, through the leverage of the brands' expertise / benefits / components / market / lifestyle etc.
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Brand Extensions: Applying the Rules in a Digital World
- 1. Hamutal Schieber, Jan. 2016 Brand Extenstion
- 2. Agenda • Brand Extension – motivations, definitions, examples • Brand Extension & digital technology • Traditional + Digital extensions
- 3. Brand Extension Benefit Form Component Benefit Expertise Companion Customer base Lifestyle A successful Brand Extension, the David Aaker model
- 6. Carlsberg Masculinity cc: quinn.anya - https://www.flickr.com/photos/53326337@N00
- 10. Potential Benefits 1. Penetrating a new lucrative category 2. An aura effect for the original brand 3. Dealing with a changing market 4. Building loyalty 5. Targeting a new customer segment
- 11. Relevancy
- 13. Montblanc Extending to survive cc: Freimut - https://www.flickr.com/photos/9255261@N07
- 15. Targeting a new segment
- 17. Brand Extension Types Same industry Adjacent category Same industry New category New industry
- 18. Then, Digital Happened Same industry Adjacent category Same industry New category New industry Same industry Same category New channel
- 19. The adaption of digital tools is, de-facto, a brand extension, and thus requires the same decision-making process as with any brand extension.
- 20. Traditional Brand Extension Rules Does the new category hold a significant growth/ positioning potential Can the company provide added value in the category? What are the brand values as perceived by the consumers in the specific market?
- 21. New Brand Extension Rules: from brand- centricity to consumer-centricity What new categories can we invent in order to help the consumer? What sort of technologies can we leverage in order to help the consumer? What is the brand’s most authentic and engaging story?
- 24. Honda changes the story to: Mobility
- 25. Mobility
- 26. Reebok Fitness
- 27. Reebok Fitness
- 29. IBM Computing cc: crazytales562 - https://www.flickr.com/photos/73798453@N00
- 30. IBM Computing IT
- 32. Ziploc freshness
- 33. Ziploc freshness
- 37. Crayola creativity – 3 D fashion modelling
- 38. Bud Light socializing cc: Ron,Ron,Ron - https://www.flickr.com/photos/22058765@N02
- 41. Nike: Just Do It
- 42. Just Do It - Wearables
- 43. Just Do It - App
- 44. Google cc: 53 mm photogRaphy - https://www.flickr.com/photos/33563560@N04
- 45. Browsers “Companion” cc: stshank - https://www.flickr.com/photos/33782207@N00
- 46. B2B
- 47. Autonomous Cars cc: MarkDoliner - https://www.flickr.com/photos/19714819@N00
- 48. Amazon cc: trekkyandy - https://www.flickr.com/photos/87054972@N00
- 49. Amazon Kindle cc: pamhule - https://www.flickr.com/photos/58571789@N00
- 50. Amazon Fresh cc: andynash - https://www.flickr.com/photos/94611718@N00
- 51. Amazon Dash
- 52. Starbucks cc: ЕленАндреа - https://www.flickr.com/photos/14901566@N07
- 53. RTDcc: Jacky W - https://www.flickr.com/photos/55005012@N00
- 54. Energy Drinks cc: JeepersMedia - https://www.flickr.com/photos/39160147@N03
- 55. Digital Payments
- 57. L’Oreal – the Internet of Things
- 58. Airbnb - Belong
- 61. Uber Rush
- 62. Uber Eats
- 63. To Sum Up: In a digital world, brand extension is not optional: it is a must, which is inherent to the digital activity
- 64. Therefore, as with any brand extension, we must follow the rules: Relevancy – as perceived by the client; Capabilities – adapting the technology; And Added Value achieved through the new category.