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Brand Management Lecture 5 Brand Extension (Brand extension Process…
Brand Management Lecture 5
Brand Extension
Benefits and drawbacks
Advantages
Increased long term profitablity and growth
Conteract satuation連續飽和, decline or seaonality
Reduced NPD (New product development) effort and costs
Increased likelihood of gaining distribution and channel support
Efficiency increase in marketing communications spend and impiementation
Enhancement of parent brand image and associations
Brand meaning clarification
Disadvatntages
Creation of confusion or frustration in consumers' minds
Damage reputation of parent brand
Diminished identitfication with any product category
Dilution of brand meaning and associations
Loss of opportunity to develop a new product and capitalise on another name
Cannibalisation of sales of tother brands in portfolio
吞噬透視自組合中其他品牌的銷售額
Brand extension Process
Understand brand associations
Identify product categories linked to these associations
Evaluate the ctegory in relation to its business attractiveness
Consider product offering and positioning options
Managerial Assumptions
Brand has strong and meaningful associations which are
transferable
and
relevant
to the new category
Transferable Associtations
Category Association Theory
Consumers mentally
classify
the world of objects around them into different categories
Categorisation helps to distinguish an object and depend on how well an individual can assess
suitability of its membership
in a category
Consumers hold associations about brands and use these to determine whether or not an extension
fits
a category
The extension will deliver real
perceived advantage
oer the competion
Positioning of the brand in a new category can
capture
the core associations and values
Company will be able to sustain支持 the extension in the long run
Brand Symbiosis
Type
Mutual
Established brand, good fit
Positive Association
No Symbiosis
Unknown brand
No Associtions
Negative
Established brand, poor fit
Negative Association
Vertical Extension
Definition, benefit and drawback
Where the brand is extended 'up' or 'down'
Designed to expand market coverae and bing new consumers into brand franchise
Can revitalize the parent brand or facilitate subsequent extensions 可以重振母品牌或促進後續擴展
However can frustrate customers, lead to rejection and damage parent brand image
Downward Stretching
Current customers are most likely to have negative perception
Can potentially devalue brand equity
可能會使品牌資產貶值
Brand contract, especially quality should be honoured
品牌合同，特別是質量應該得到尊重
Legend of parent brand should be nourished
母品牌的傳奇應該被養育
Sub-brands may be way to manage downward stretching
子品牌可能是管理向下延伸的方法
Distribution can be split into segments
分佈可分為多個部分
Distancing techniques
Means through which the brand extension is positioned closer to, or further away from the core brand
Involves linguistic and graphical distancing techniques
May involve new brand extension identifier
Important in vertical and step up extensions
Brand Alliances
Co-branding
Partnerships
Underlying assumptions
A brand is a
single and long-lasting promise
which can be expressed and embodied in different products and eventually different categories
Benefits move from a single product based benefit to a larger benefit which
covers a wide range of products
ultimately brandextension
redefines
abrand and its identity
Development of Brand Extension
Exploits opportunity to
leverage
brand name to another product category
Has resulted in the creation of
mega brands
超級品牌
Increasingly adopted as general brand management procedure however category
remoteness
varies
Celebrity Brand Extensions
In Summary: Factors Which Affect Success