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L9: Grow and sustain brand Equity (Brand extension (Disadvantages…
L9: Grow and sustain brand Equity
Brand extension
Does brand extension leverage equity?
Does extension contribute to equity?
Many advantages
Reduced risk
Increases variety
Increases brands relevancy in new markets
Increase probability of distribution and trial
Efficiency
Reduced introduction/development costs
Disadvantages
Customer confusion
Retailer resisance
Success and failure may hurt parent brand
Cannabalisation
brand meaning dilution
Cost increase
Opportunity costs of developing new brand
Vertical extension
Up or down the value spectrum
Up or down scale: Cars --> Trucks or shoes
Horizontal extension
Extension within current value position
Line extension or category extension: Different brands of toothpaste or cars
Difficult to extend if brand is category-defining (Kleenex) or has a functional, rather than symbolic association
Reinforcing brands
Maintaining brand consistency
Protecting sources of brand equity
Fortifying vs leveraging
Fine-tuning supporting marketing programme
Revitalising brands
Result of neglect
Only pursued when values, favourability and awareness remain
2 ways of refreshing brands
Expand depth/breadth of awareness
Breadth more often the problem: Identify new additional/usage opportunities, new and completely different ways to use brand
DeBeers Diamonds or Wrigleys chewingum instead of smoking
Improve strength and uniquness of brand associations making up the brand image
Find points of parity with category leaders
Establish new points of difference or bring focus back on old PoD
Change brand elements e.g. KFC shorten abbreviation and more friendly, colourful person
Dove Case Study