Please enable JavaScript.
Coggle requires JavaScript to display documents.
Week 7 - Brand extensions - Coggle Diagram
Week 7 - Brand extensions
Define brand architecture and discuss the steps in a brand architecture strategy
Definition: The representation of a number and the nature of common or distinctive brand elements applied to different products sold by the brand
Step 1 - Define the Brand Potential, including the Brand vision, boundaries and positioning
Step 2 - Identify Brand Extension Opportunities.
Line extensions: New product introductions within existing categories.
Category extensions: New product introductions outside existing categories
Step 3 - Brand new products and services. Which brand elements should be applied.
Describe what is meant by depth and breadth of the brand- product matrix
Depth
How deep does the brand-product mix go?
Examine profit from each item in product line
Depth of product line can be increased by adding new variant items. This will increase market coverage and market share but at additional costs
Can it withstand competition?
Breadth
How broad is the strategy?
Aggregate marketing factors, eg market size, PLC
Category factors, eg threat of new entrants, category rivalry
Environmental factors, eg technological, social, political
List and describe the brand extension strategies
Factors
Salience of parent brand associations in the minds of consumer in the extension context
Favourability of any inferred associations in the extension context
Uniqueness of any inferred associations in the extension context
Identify and discuss the advantages and disadvantages of brand extensions
Advantages
Feedback benefits to the brand
Clarify brand meaning
Enhance the parent brand image
Revitalise the brand
Bring new customers into the brand frnachise
Facilitate new product acceptance
Improve brand image
Increased efficiency for promotional spending
Avoid costs of developing new brand
Reduce perceived risk by customers
Disadvantages
Can confuse of frustrate
Can encounter retailer resistance
Can fail and hurt parent brand image
Can dilute brand meaning
Can succeed but cannibalise other product sales
Identify and discuss factors that contribute to brand extension success
Success factors
Brand extension should strengthen or add favourable and unique associations to the parent brand. This depends on four factors:
How compelling, or attention getting, is the information about product performance or imagery?
How relevant is the extension – is product performance and imagery for one product predictive of the other?
How consistent is the extension with the parent brand?
How strong are associations for the parent brand?