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Week 7: brand extensions and branding new products (5. Identify and…
Week 7: brand extensions and branding new products
2. Describe what is meant by depth and breadth of the brand-product matrix
Depth is the number and nature of brands in the same product category
Breadth is the no. and nature of products that bear the same brand name
The brand-product matrix:
A graphical representation of all the products sold by a firm
Each row of the matrix portrays the brand name (brand lines: all the products sold under a particular brand name eg. brand extensions)
Each column represents a product (product lines: all the brands marketed in particular product categories)
Product-brand r/s (columns)
Brand portfolio, which are the no. of brands and brand lines offered in a category
Brand line
All the products in the same brand, includes the original and extensions within the brand
Brand-product r/s (rows)
line and category extensions
Product category
Products that offer the same general functionality
Product mix
Product assortment
Set of all product lines and items available
Product line
A gap of products within a product category that are closely related
1. Define brand architecture and discuss the steps in a brand architecture strategy
The role of a brand architecture is to clarify brand awareness and improve brand image
Clarify brand awareness:
Improve consumer understanding and communicate similarity and differences b/w individual products and services
Improve brand image:
Maximise transfer of equity b/w the brand and individual products and services to improve trial and repeat purchase
Step 2: Identifying brand extension opportunities:
Identify new products and services to achieve brand potential through a well-designed and implemented brand extension strategy
Line extension (New product introductions within existing categories)
Category extension (New product introductions outside existing categories)
Step 3: Branding new products and services:
Decide on what brand elements to apply
Must be chosen to fit with current positioning and with brand to clarify brand meaning
Branded house strategy (Firm employs an umbrella/family corporate brand for all its products)
House of brands strategy (Firm has individual brands with diff names)
Sub-brand strategy (Product incorporates both the parent brand name and a new name (Apple Watch, Apple iPad etc)
Step 1: Defining brand potential:
Articulate the brand vision (brand's view of long-term potential, how well the firm is able to recognise the current and possible future brand equity)
Brand boundaries (Identify the products/services the brand should offer, the benefits it should supply and the needs it should satisfy)
Brand positioning (Examine the comp environment and define it)
3. List and describe the brand extension strategies
Brand extensions aid in creating, maintaining and enhancing brand equity
Line extension: Adds a new flavour/ingredient/size/form/application (eg. Chobani yogurt)
Category extension (eg. Guinness beer)
4. Identify and discuss the advantages and disadvantages of brand extensions
Advantages
:
Provides feedback benefits to parent brand
Helps clarify the brand's meaning and positioning
Enhances image of parent brand
Revitalises a brand
Brings new customers into the brand franchise and increase market coverage
Facilitates new product acceptance
Improves brand image
Reduces risk perceived by customers based on trust and credibility with parent brand
Increase the probability of gaining distribution and trial
Increase efficiency of promotional expenditures
Reduces costs of introductory and follow-up marketing programs
Avoid costs of developing a new brand
Allow for packaging and labelling efficiencies
Permit consumer variety-seeking
Disadvantages
:
Can confuse/frustrate consumers
Can encounter retailer resistance
Can fail and hurt parent brand image
Can succeed but cannibalise sales of parent brand
Can succeed but diminish identification with any one category
Can succeed but hurt the image of the parent brand , if attribute/benefit is inconsistent/conflicting
Can dilute brand meaning
Can cause the company to forgo the change to develop a new brand
5. Identify and discuss factors that contribute to brand extensions success
Success of brand extension will depend on its ability to:
Create equity for the new product
Should have a high level of awareness (recognition & recall)
Establish desired POP and POD
Contribute to the equity of the parent brand
Successful extensions should strengthen/add favourable and unique associations to the parent brand
To contribute to the parent's brand equity, the effects of the extension on consumer brand knowledge depends on:
How compelling the info about the product perf/imagery is
How relevant are the product's perf/imagery
How consistent is the extension with the parent brand
How strong are the associations for the parent brand in consumers' mind
Creating a positive image for an extension will depend on:
Salience of parent brand associations that came to mind in the extension context
Favourability of any inferred associations in the extension context
Uniqueness of any inferred associations in the extension context
Should not diminish the strength, favourability and uniqueness of the parent brand's existing associations