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A brand makes it possible to identify a product. It gives it a name and makes it differentiable by assigning identifiable properties. But once the brand gains reasonable traction and finds its position in the market, new doors open for the company. It often uses this opportunity to launch new products under the same brand, which borrows the similar positioning of that of the existing product, even though they belong to different categories.

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This marketing strategy is known as brand extension. Brand extension also called brand stretching is a marketing strategy where the company makes use of its existing established brand name for a new product or a new product category.

multi product brand extension

This helps it to leverage the brand equity and positioning of the existing famous brand to get initial traction. Brand extension involves using an existing brand to launch and promote new products.

It can be categorized into six types —. Companion products usually complement the original products. They belong to the same niche and are generally directly related to the original products. Examples include — Colgate, a toothpaste brand, releasing a toothbrush under the same brand name.

This is the most sought-after brand extension strategy as it also helps in sales promotion and marketing the original product. Product form extension includes launching the same product in a different form, which results in it competing in a different product category. Snickers used this brand extension type to launch Snickers ice cream bars. Even though the product just changed its form, it belonged to a different product category. Company expertise extension strategy comes to play when a company extends its expertise and its brand name to a new product.

The company expert in making good sounding speakers may extend this expertise in developing good sounding televisions as well. When a company extends its brand into different product categories focused on a single market segment, it is called customer franchise extension.

Johnson and Johnson, for example, develop different products under the same name, which caters to the same target consumers — babies.

Many brands are considered unique with regards to the benefits they provide or the way they deliver the utility. Companies often use these benefits along with the existing brand name to enter into new niches and industries. This extends the existing brand equity to the new product launched. For example, BMW, a known automobile brand, extended its brand prestige to the products it launched in the apparel industry and accessories watches.

These brands often use this opportunity to leverage this element to launch a new product under the same category. Components that are usually transferred to new products include — flavour, ingredient, scent, colour, etc. Some brands have successfully positioned themselves as a part of a particular lifestyle — they reinforce a way of living, culture, or set of values or interests.

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They are known as lifestyle brands. These lifestyle brands are known not for a distinct benefit or component but a distinct visual style that the customers can emotionally relate to — like luxury, rugged work ethic, or outdoor lifestyle. They use this positioning strategy to expand their range of offerings. Take jeep, for example, a well-known automobile brand connected with an outdoorsy lifestyle.

The company used this image as a base to extend its offerings to a range of products which includes clothing, knives, tents, bicycles, baby strollers, etc.

multi product brand extension

When a celebrity, an industry expert, or an influencer lends his name, knowledge, and expertise to a brand to help it extend its product offerings, it is known as red carpet brand extension.The marketing of more than two or more brands, belonging to the same or related category, by a company is called multi-branding.

In this case, the brands are mostly substitutes of each other. One of the things to consider while managing multiple brands portfolio is that there is a constant need of analyzing the condition and profitability of each brand and to decide how much marketing and other expenditure needs to be done on it, if at all it is to be continued. Hence there is a constant requirement of line pruning. This is an example of multi branding since there are many soap brands under the category of bathing soaps under the umbrella of HUL.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over business concepts from 6 categories. What is MBA Skool? About Us.

Branding Decisions – 4 Brand Strategy Decisions to Build strong Brands

Business Courses. Quizzes test your expertise in business and Skill tests evaluate your management traits. Related Content. All Business Sections. Write for Us. Start Learning Now! Share this Page on:. Follow us on.Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category.

Brand managers use this as a strategy to increase and leverage brand equity. Product extensions, on the other hand, are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. In a study of more than brand extensions it was determined, and now widely accepted that there are eight types, each with its own unique leverage.

We live in a time when consumers are in control. With greater access to information, choice in products and services, brands have found themselves shifting rapidly to adapt to what this new consumer not just wants but expects a brand to deliver.

In the search for more revenue, many brands seem keen to broaden their mandate or redefine the sector they see themselves as now being part of. Not too long ago here on Branding Strategy Insider, one of my co-authors, Nigel Hollis shared three basic ways a brand can change the brand game to its advantage:.

Ten Routes to a Successful Brand Extension

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Branding Strategy Insider helps marketing oriented leaders and professionals build strong brands. We focus on sharing thought provoking expertise that promotes an elevated conversation on brand strategy and brand management and fosters community among marketers.

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Published under license. Powered By WordPress. Branding Strategy Insider - Homepage. Brand Extension Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category. Brand Extension February 24th, Read More.

Brand Extension

Email this Share on Facebook Tweet This! Book a Speaker. Brand Extension November 14th, Brand Extension April 27th, Brand Extension February 04th, Brand Extension October 14th, Not too long ago here on Branding Strategy Insider, one of my co-authors, Nigel Hollis shared three basic ways a brand can change the brand game to its advantage: Read More.

Previous Next. Recent Posts Popular Posts Reactions.Branding consists of a set of complex branding decisions. Major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship and brand development. Before going into the four branding decisions, also called brand strategy decisions, we should clarify what a brand actually is. However, a brand should rather be understood as a set of perceptions a consumer has about the products of a particular firm.

Therefore, all branding decisions focus on the consumer. Brand positioning can be done at any of three levels:. At the lowest level, marketers can position a brand on product attributes.

Marketing for a car brand may focus on attributes such as large engines, fancy colours and sportive design. However, attributes are generally the least desirable level for brand positioning. The reason is that competitors can easily copy these attributes, taking away the uniqueness of the brand. Also, customers are not interested in attributes as such. Rather, they are interested in what these attributes will do for them.

That leads us to the next level: Benefits. A brand can be better positioned on basis of a desirable benefit. The car brand could go beyond the technical product attributes and promote the resulting benefits for the customer: quick transportation, lifestyle and so further. Yet, the strongest brands go beyond product attributes and benefits. They are positioned on beliefs and values. Successful brands engage customers on a deep, emotional level.

Examples include brands such as Mini and Aston Martin. Brand positioning lays the foundation for the three other branding decisions.

Therefore, brand positioning should also involve establishing a mission for the brand and a vision of what the brand should be and do. When talking about branding decisions, the brand name decision may be the most obvious one.

The name of the brand is maybe what you think of first when imagining a brand — it is the base of the brand. Therefore, the brand name selection belongs to the most important branding decisions. However, it is also quite a difficult task. We have to start with a careful review of the product and its benefits, the target market and proposed marketing strategies.When it comes to brand development, there are four main brand approaches, as shown in the following diagram.

This then determines one of the four boxes, namely:. Please note that the top axis refers to the product category — that is, a set of products — not an individual product. Therefore, if Toyota was to introduce a new car, then that would still be considered to be an existing product, because they already offer and market cars.

multi product brand extension

This is a very common approach in marketing. A variation of the product line extension above, is to run a multiple brand strategy within the same market. As you can see from the matrix, a multi-brand strategy involves having more than one brand competing in the same product category. Again this is a relatively common approach for large companies.

For example, a manufacturer of frozen vegetables may have multiple brands — that to the consumer appeared to compete against each other — but have the same corporate ownership. The main reasons for this is that these brands can have different positioning in the market, dominate the overall shelf space, and reduce opportunities for competitors to enter the market or to win market share.

The disadvantage of this multi brand strategy as opposed to a product line extension strategy is the cost and time of developing a new brand name successfully in the marketplace. As a hypothetical example, consider if the Coca-Cola brand was extended to shampoos and detergents — the market would see little connection and the overall brand would be damaged.

The final brand development strategy is a new brand. This then determines one of the four boxes, namely: Product line extension Multi-brand Brand extension New brand Please note that the top axis refers to the product category — that is, a set of products — not an individual product.

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Multi brand A variation of the product line extension above, is to run a multiple brand strategy within the same market. New brand The final brand development strategy is a new brand. Previous Previous post: Brand name selection.When it comes to brand development, there are four main brand approaches, as shown in the following diagram.

This then determines one of the four boxes, namely:. Please note that the top axis refers to the product category — that is, a set of products — not an individual product. Therefore, if Toyota was to introduce a new car, then that would still be considered to be an existing product, because they already offer and market cars. This is a very common approach in marketing. A variation of the product line extension above, is to run a multiple brand strategy within the same market.

As you can see from the matrix, a multi-brand strategy involves having more than one brand competing in the same product category. Again this is a relatively common approach for large companies. For example, a manufacturer of frozen vegetables may have multiple brands — that to the consumer appeared to compete against each other — but have the same corporate ownership.

The main reasons for this is that these brands can have different positioning in the market, dominate the overall shelf space, and reduce opportunities for competitors to enter the market or to win market share. The disadvantage of this multi brand strategy as opposed to a product line extension strategy is the cost and time of developing a new brand name successfully in the marketplace.

As a hypothetical example, consider if the Coca-Cola brand was extended to shampoos and detergents — the market would see little connection and the overall brand would be damaged. The final brand development strategy is a new brand.

Terms and Conditions. Skip to content When it comes to brand development, there are four main brand approaches, as shown in the following diagram. This then determines one of the four boxes, namely: Product line extension Multi-brand Brand extension New brand Please note that the top axis refers to the product category — that is, a set of products — not an individual product.

Previous Previous post: Brand name selection.Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments.

An existing brand that gives rise to a brand extension is referred to as parent brand. Instances where brand extension has been a success are- Wipro which was originally into computers has extended into shampoo, powder, and soap. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

Instances where brand extension has been a failure are- In case of new CokeCoca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola.

Rasna Ltd. Oranjolt was a fruit drink in which carbonates were used as preservative. Oranjolt need to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five months.

multi product brand extension

Advantages of Brand Extension Brand Extension has following advantages:. View All Articles. Similar Articles Under - Brand Management. To Know more, click on About Us. The use of this material is free for learning and education purpose.

Please reference authorship of content used, including link s to ManagementStudyGuide. Brand Management - Introduction What is a Brand? Brand Extension - A Success or Failure? What Do Brands Do?