New Products and Brand Extensions

The impossibility for grocery stores or supermarkets to offer all different variables available across all different brands in any one product category is

retail resistance

When customers see the brand extension's attribute or benefit associations inconsistent or in congruent with those of the parent brand it can

succeed but hurt the image of the parent brand

When the brand isn't identified with any one product, it can

dilute brand meaning

The three major risks of vertical extensions

1) confusion & frustration of consumers 2) introduction of undesired associations (downward extension) 3) cannibalization of sales of parent brand (downward extension)

The two advantages of brand extension

1) facilitate new product acceptance 2) provide feedback benefits to the brand

How compelling/important the evidence is concerning the corresponding benefit associated in the extension context, how relevant or diagnostic the extension evidence is concerning the attribute or benefit for the parent brand, how consistent the extension evidence is with the corresponding parent brand associations, and how strong existing attribute or benefit associations are held in consumers' memory for the parent brand all

contribute to parent brand equity

Category Extension

an existing brand is used for a new product category different from the one it currently serves

Line Extension

an existing brand is used for a new product that targets a new market segment within an existing product category

Preemptive cannibalization

avoid switching to competing brands and leads consumers to switch to more profitable offerings

Apple smart watches, Coke milk, and Starbucks ice cream are all examples of

category extensions

Improves product image, reduces risk perceived by customers, increases the probability of gaining distribution and trial, increases efficiency of promotional expenditures, allows for packaging and labeling efficiencies and permits consumer variety-seeking are results of

facilitating new product acceptance

Negative feedback due to failure of brand extension can

fail and hurt the parent brand

Clarifies brand meaning, enhances parent brand image, increases market coverage, and revitalizes the brand are

feedback benefits from brand extensions

Lack of identification and a weakened image is especially evident with ___________ or __________ brands.

high-quality, prestige

New form or size, flavor or ingredient, and application of the brand are all examples of

line extensions

Frustration

regarding brand extensions, when consumers have a difficult time finding the line extension because of limited space of retailers

Confusion

regarding brand extensions, when consumers question which version is the right one for them

How salient parent brand associations are in the mind of consumers in the extension context, how favorable any inferred associations are in the extension context, and how unique any inferred associations are in the extension category determine

positive imagery for the brand extension

The most common methods for brand extensions are

use one of the existing brands and use a combination of a new brand and an existing brand