Chp 6 Brand Extensions

Some Unlikely Successes & Surprising Failures

-Yamaha moving from pianos into motorcycles been success. -Malrbooro ciggs moving into apparel have been less success. Even tho marlbaoro ciggs have well estab. Identity of cowboy, move into apparel not success. Bc some identity, image & person. Assoc.'s didn't transfer cleanly

Benefits of Brand Extensions

1.new product accetpancve 2.raising parent brand value

New Product Acceptance Pros & Cons

Pros: •1. A strong endorsing brand will reduce consumers' perceived risk. •2. The product can piggyback on an established brand's distribution. Ex.Dove: has created lots line extensions Exmany diff. lines of soap & Dove gone into diff categories than soap -started iff soap, did line categ.'s & extednded diff product categ.'s (deodarent, lotion, men+care->never tagrteed men but now line targets men, bc dove strong brand help men+care line, bc its dove helps ppl accept it (reduce functional risk) & dove men+care if successful help parent brand dove -reason col do this is make brand extension more likely be successful & build value parent brand •3. An established brand will yield spillover effects in advertising. •4. The introductory campaign will be less costly. -contoinue on benefits of brand extension, another major benefit is new product accept. -slim jim fire fries: ppl are gonna be more likely try that product w/ trusted brand name of slim jim, if don't wont try it (1. A strong endorsing brand will reduce consumers' perceived risk) 4. The introductory campaign will be less costly. -one great hurdles launch a new brand is getting brand out into mktplace, get distrib. Properly, getting retailers to put it onto shelves, get consumers to try it, this is costly Cons: •1. Less uniqueness compared with a new brand. •Less uniqueness refers to the extension sharing some of the parent brand's characteristics, rather than a completely new brand. •2. Brand fit may not be good enough to create acceptance.

umbrella brand

Umbrella is a parent brand, identified and associated with individual brands as the parent company, like GM (umbrella) and GMC (individual brand). Family brands carry through to, and are associated as part of individual product brand names - Tide liquid detergent, Tide Pods, Tide stain pens, etc. Umbrella brands are the same as a branded house

The P&G "No-Umbrella" Strategy

uAccording to its annual report, P&G has found that their CPG (consumer package goods) markets usually fall into three main segments: u1. A functional segment, where the salient benefits tend to be superior product performance. u2. An emotional based segment, where the primary benefits involve aesthetics, experiential, and other hedonic benefits. u3. A value-based segment, where consumers mainly look for a high performance-to-price ratio. uWith little evidence of cross-overs between these segments, P&G sees no gain in using brand extension, but instead introduces separate brands in these segments uThe gain: A more precise positioning of these bands. Within each brand, there are different sizes, versions etc.

Co-Branding

uInstead of introducing new product, an established brand can leverage its strength in a particular market segment by co-branding with an existing brand. uCo-branding is the practice of combining two independent brands into a single product or promotion. Examples: uBoth brand logos appear on a product uJeep offers a special Eddie Bauer model. uIt can involve advertising the two separate brands jointly. uBacardi and Coca-Cola use a co-branding strategy. uIt can mean that the brands share the same facilities. uStarbucks can be found in Barnes & Noble. uIt can involve "ingredient branding." uThe "Intel inside" campaign. Vid notes: -cobranding is a variation/ex. Of this -when comes cobranding instead introduce new product or brand extension or subbrand, 2 estab. Brands want team up, cobranding when 2 brands get together & both brand names are going to be either on a new product or there'll be an endorsement like r/s b/w brands, both brand logos often will -classic ex.'s cobranding: -Ford trucks offer a special edition Harley Davidson model -sometimes doesn't necc. Have be new produxt or one brand endorsing another brand in some kind of cobranding r/s, oft times could be advertitisng r/s where 2 prominent brands belong together like coke & Bacardi would engage in joint advertising to promote both rbands & try share some brand equity of cobranded partner It can mean that the brands share the same facilities. Starbucks can be found in Barnes & Noble. -starbucks has been doing past couple yrs by moving into large retailers like target -Target capitalizes on the Starbucks brand, the starbucks brand capitalize son the target brand It can involve "ingredient branding." The "Intel inside" campaign. ex. PC, if bought PC or lap[top lately, used be macbooks bvut not use intel chips, you'll see intel inside that the logo, often times there'll be sticker on pc or laptop will say intel inside, intel is processor/chip runs pc & odft times promininetn on pc or latop

Same Brand or Sub-Brand?

uSeveral options exist to implement a brand extension. uThe simplest and most direct way involves using the same name and logo in exactly the same design as the original. uSince the associations will be obvious, this approach requires a very close fit between the old and new products. uTo accommodate some weaker fits, an alternative would be to use the existing brand as an endorsement brand. uThis requires a new brand but with a tagline, as in "NexWatch A Honeywell company" uThis would weaken the effect, but therefore also avoid a possible negative backlash due to the weaker fit. -can take exsitint gbrand go new categ.'s or have subbrand can be endorsed by parent brand -slides don't do good job -subbrands/endorsed brands -talk ab subnranmds, umbrella brands & cobrands: all variations of hierarchy -2 distinctionbsL branded house v. house of brands -branded house form umbrella brand, subbrand are brands dvlped storn gparent brand attached Ex. Apple: carries thru, see logo throughout even tho apple brand unique in itself -endosrsed brands are variation bubsrands which variation branded house -branding liot. Lot of terms used -spectrum branded house to house of brands -subnrand closer branded house strat. -some cases -Disney is endorsed brands -subbrands could take 2 variations -could have prominent identity/parent identity (fedex) v. subbrand (fedex ground/freight) or take subttle version where parent brand displayed subbrand (apple music., watch 0-subnbrands & branded house -subbrands esiest way do brand extension: take parent brand & drop new product categ. Or w subtle name -talk brand extensions: these are ways do brand extension-variation subbrands is endorsed brand -haver parent vrabnd, emphasize subbrand more promintnelay than other 2 approaches -reasons why do things: -if have weak vbrand product categ. `ex. Payment syst & apple: apple doens thvae strong hisotyr but other co.'s done fintech longer & better; in order extend categ. Payments processing: borrow brand equity from parent,. In other categ.'s where thing product have better chance don't need borrow as much parent brand, goal is build brand house of brands -normal mvment left to right: want have brand like pampers don't need P&G displayed Why do you want get house of brnads -want brands be ablwe stand on own , ween brands off parent brand so don't need marriot Ex. -build brna dquity & value apart from co. -fedex chosen remain branded house, given cateh.';s go into commodity/supply chain Ex. Fedex name always part bc bus. Do but P&G has 36 brands each standalone -attempt recent pull brands under P&G umbrella: some ads come out sponsorsed by P&G -P&G supply chain: their trucks labeled P&G -branded house: strong parent identity -endorsed brands: not strong parent identity -house: -co.'s wqnt build standlone brands don't need parent anymore -endorsed: have small parent brand name or endorsement have "Courtyard by" -q. of what are strengths go into Ex. Kellog's has brand strengths make stuff eat for bfast, give advent. Bfast foods so don't need leverage parent brand (endorsed brands) crunchy nut can sy -umbrella brand same thing brnded house: where have parent brand covers everything in portfolio -sometimes known fam. Brands Ex. Dove=umbrella brand https://brandmarketingblog.com/articles/good-branding/umbrella-brand-examples/ Ex. Axe: prominent brand name on packages -umbrella extended many brand categ.'s & taken w/ name 'Mr Clean: pic/icon of brand prominent all brand extensions -when think ab brand extension; need ask are we strong or weak in product categ., will ppl believe we can make mr clean extend into prform. Vheicles -when go into product categ. Need ask do I have competence In all product categ.'s extended to )liquis, dirt, granular: name prominently displayed) -umbrella brands are classic, stonrg prominent brand name all categ.'s they are -ab brand strat. Ex. 3M: on tape, fridges -is corporate strat. Designed carry thru all product categ. -extendability: how easy is it get into categ. & what rely on identity, image or persona.-attempt get brand into new product categ. Not in prev. , on path introduce brand new mktplace->more in record Ex.bfast food co. extend into snakcs, don't need parent brand weight carry w you, ppl will believe its good Ex. apple starts new bfast bar: ex. Of a brand decided not extend but could start new brand -build & start new brand lot in term starup, idea brand extensions is take value parent brand & leverage new product categ.: how is by umbrella branding, endorsed branding, sub brand. Ex. Apple Pay: don't advwrtise but -apple watc: wanted break into watch mkt but figured cant do it yourself partner w rolex -cobranding another ay extend brand, partner w brand has expertise in categ. Want extend to Think own brand extensiosn: -identity, image personality: what are strengths -how going to do brand? Cobranding? Ex/. -try get into segment,try appeal exist motorcycle buyers don't wqnt buy truck but If see logo on truck maybe buy, cobranding options limitless Ex. Nacho cheese doritos locos taco -how you canleverage your strengths go into new product categ. Vid notes: Q in terms of a brand extension that's going tonbe things talked ab so far have do w fit, whether or not a brand extendsion fits w parent brand, many diff. ways do brand extension/variations brand extension & called diff. names -bad brand extensions have occurred recent yrs give idea to give betteridea as what fit might mean Ex.2012 Arizona ioced tea launched nacho & cjheese dip product which maybe consumers want salty snack go w/ sweet iced tea -from quadrant: 4 diff types of brands & brand extension types of products -subbrands connect to master brand in some way ex. Apple: ipad, apple tv, iphone Ex. Micr. Also created subbrands by spinning off office, windows, bing, typ. Some connection bw subbrand & master brand Ex. Iphon eis a brand in itself but connected stgrongly apple brand, -subbrands are form of brand extension, just parent brand doesn't play as prominent of role in subbrand strat. -subbrnad oft times endorsed by parent brand -classic brand extension=slim jim -can take exsitint gbrand go new categ.'s or have subbrand can be endorsed by parent brand -slides don't do good job -subbrands/endorsed brands -talk ab subnranmds, umbrella brands & cobrands: all variations of hierarchy -2 distinctionbsL branded house v. house of brands -branded house form umbrella brand, subbrand are brands dvlped storn gparent brand attached Ex. Apple: carries thru, see logo throughout even tho apple brand unique in itself -endosrsed brands are variation bubsrands which variation branded house -branding liot. Lot of terms used -spectrum branded house to house of brands -subnrand closer branded house strat. -some cases -Disney is endorsed brands -subbrands could take 2 variations -could have prominent identity/parent identity (fedex) v. subbrand (fedex ground/freight) or take subttle version where parent brand displayed subbrand (apple music., watch 0-subnbrands & branded house -subbrands esiest way do brand extension: take parent brand & drop new product categ. Or w subtle name -talk brand extensions: these are ways do brand extension-variation subbrands is endorsed brand -haver parent vrabnd, emphasize subbrand more promintnelay than other 2 approaches -reasons why do things: -if have weak vbrand product categ. `ex. Payment syst & apple: apple doens thvae strong hisotyr but other co.'s done fintech longer & better; in order extend categ. Payments processing: borrow brand equity from parent,. In other categ.'s where thing product have better chance don't need borrow as much parent brand, goal is build brand house of brands -normal mvment left to right: want have brand like pampers don't need P&G displayed Why do you want get house of brnads -want brands be ablwe stand on own , ween brands off parent brand so don't need marriot Ex. -build brna dquity & value apart from co. -fedex chosen remain branded house, given cateh.';s go into commodity/supply chain Ex. Fedex name always part bc bus. Do but P&G has 36 brands each standalone -attempt recent pull brands under P&G umbrella: some ads come out sponsorsed by P&G -P&G supply chain: their trucks labeled P&G -branded house: strong parent identity -endorsed brands: not strong parent identity -house: -co.'s wqnt build standlone brands don't need parent anymore -endorsed: have small parent brand name or endorsement have "Courtyard by" -q. of what are strengths go into Ex. Kellog's has brand strengths make stuff eat for bfast, give advent. Bfast foods so don't need leverage parent brand (endorsed brands) crunchy nut can sy -umbrella brand same thing brnded house: where have parent brand covers everything in portfolio -sometimes known fam. Brands Ex. Dove=umbrella brand https://brandmarketingblog.com/articles/good-branding/umbrella-brand-examples/ Ex. Axe: prominent brand name on packages -umbrella extended many brand categ.'s & taken w/ name 'Mr Clean: pic/icon of brand prominent all brand extensions -when think ab brand extension; need ask are we strong or weak in product categ., will ppl believe we can make mr clean extend into prform. Vheicles -when go into product categ. Need ask do I have competence In all product categ.'s extended to )liquis, dirt, granular: name prominently displayed) -umbrella brands are classic, stonrg prominent brand name all categ.'s they are -ab brand strat. Ex. 3M: on tape, fridges -is corporate strat. Designed carry thru all product categ. -extendability: how easy is it get into categ. & what rely on identity, image or persona.-attempt get brand into new product categ. Not in prev. , on path introduce brand new mktplace->more in record Ex.bfast food co. extend into snakcs, don't need parent brand weight carry w you, ppl will believe its good Ex. apple starts new bfast bar: ex. Of a brand decided not extend but could start new brand -build & start new brand lot in term starup, idea brand extensions is take value parent brand & leverage new product categ.: how is by umbrella branding, endorsed branding, sub brand. Ex. Apple Pay: don't advwrtise but -apple watc: wanted break into watch mkt but figured cant do it yourself partner w rolex -cobranding another ay extend brand, partner w brand has expertise in categ. Want extend to Think own brand extensiosn: -identity, image personality: what are strengths -how going to do brand? Cobranding? Ex/. -try get into segment,try appeal exist motorcycle buyers don't wqnt buy truck but If see logo on truck maybe buy, cobranding options limitless Ex. Nacho cheese doritos locos taco -how you canleverage your strengths go into new product categ. Vid notes: Q in terms of a brand extension that's going tonbe things talked ab so far have do w fit, whether or not a brand extendsion fits w parent brand, many diff. ways do brand extension/variations brand extension & called diff. names -bad brand extensions have occurred recent yrs give idea to give betteridea as what fit might mean Ex.2012 Arizona ioced tea launched nacho & cjheese dip product which maybe consumers want salty snack go w/ sweet iced tea #1. Arizona Nacho and Cheese Dip, 2012 The Logic: Maybe consumers will want a nice salty snack to go with our sweet iced tea! Evaluation: No, they don't. Miss. Why? Consumers couldn't wrap their heads around their delicious sweet tea company offering nacho chips. The association was off, and the company met meek success. #3 Evian Water Bras, 2005 Advertisements REPORT THIS AD Evian water bras, extend brand into bras The Logic: What is every possible way water can be used? Don't just drink it, if you can drink it while wearing it. Evian's thought process was that this water bra would help keep its wearer cool, temperature wise. Evaluation: Evidently, people do not need Evian water to fill up all their cups. Miss. Why? Evian's target market did not see their mineral water bottle company as a credible regulator of certain body part temperatures. The consumers were not interested in buying Evian bottled water to, presumably, fill up their Evian water bras. But look out for Evian Toilet Bowl Water Fillers, probably coming soon. -One classics was flop was colgate toothpaste: colgate launched series kticken entrees (microwavab;e/oven heatable) l #6 Colgate Kitchen Entrees, 1982 The Logic: What if we were both the creator of the problem and also the solver of the problem? Let's give the consumers a reason to brush their teeth! Evaluation: I don't think this is a surprise. Miss. The Logic: People do not want to be thinking about the minty taste of their toothpaste when they are eating a savory chicken salad. Consumers were unable to overcome their strong association of Colgate to toothpaste, causing this product to be a complete fail. It has thankfully been discontinued. #7 Bic Underwear, 1998 The Logic: We already provide disposable pens, razors, and lighters. The next step is obviously disposable underwear. Evaluation: Was The Logic even remotely believable? How did this actually happen? Miss to the Max. Why? Why is my trusted pen producer trying to cloth me? I really don't think this needs explanation. #8: Entenmann's Candles, 2008 The Logic: Do they smell as good as they taste? Is this a new way of dieting? Same great flavor, minus the carbs and the consumption? Evaluation: They smell as good as they taste. Hit. Why? It might seem like a strange association, but the launch of Entenmann's first non-edible product in 2008 was so successful that they released holiday scents the same year. The smell of Entenmann's edible goods is apparently strong enough for consumers to see the company as a trusted scent producer. - #9 Cosmopolitan Yogurt, 1999 The Logic: Women who read Cosmo definitely look like yogurt eaters. Everyone knows if you can sell sex and celebrities as sophisticated, you can sell anything. Advertisements REPORT THIS AD Evaluation: You can't sell just anything. Miss. Why? Cosmo is a magazine company. Yogurt is a food. Never have I read a magazine and thought, "This would be so much better if I could be eating their product as well." The connection and the relevance was lost on consumers. #10 Dr. Pepper BBQ Sauce and Marinate, 2014 The Logic: Most people subconsciously wish their BBQ sauce and marinate taste like Dr. Pepper, I'm sure. Evaluation: Even if they wished it, they didn't like it. Miss. Why? The taste simply didn't appeal to consumers in the way Dr. Pepper had hoped. Michelin Tires & Stars, 1900 Guinness Beers & World Records, 1955 -lot ex,.'s bradn extensions have missed mark over yrs-tyhink ab classic brand vextension, where parent brand extends into new product categ & the parents brand logo prominent on packaing (saw on slim jim fries), classic brand extension ex. Where sehhelf stable meat product =has extended into salty crunchy snack mkt & prominent brand name is in middle of bag -other variations to branding, when think ab classic brand e3xtension (fire fries0 but are variations, sometimes better approach is do a subbrand strat., something where it's a brand extension lite: sub brand Is going be brand oft times endorsed by a parent brand -from quadrant: 4 diff types of brands & brand extension types of products -subbrands connect to master brand in some way ex. Apple: ipad, apple tv, iphone Ex. Micr. Also created subbrands by spinning off office, windows, bing, typ. Some connection bw subbrand & master brand Ex. Iphon eis a brand in itself but connected stgrongly apple brand, -subbrands are form of brand extension, just parent brand doesn't play as prominent of role in subbrand strat. -subbrnad oft times endorsed by parent brand -classic brand extension=slim jim

Sub-Brand or New Brand?

uSeveral options exist to implement a brand extension. uThe simplest and most direct way involves using the same name and logo in exactly the same design as the original. uSince the associations will be obvious, this approach requires a very close fit between the old and new products. uTo accommodate some weaker fits, an alternative would be to use the existing brand as an endorsement brand. uThis requires a new brand but with a tagline, as in "NexWatch A Honeywell company" uThis would weaken the effect, but therefore also avoid a possible negative backlash due to the weaker fit. -can take exsitint gbrand go new categ.'s or have subbrand can be endorsed by parent brand -slides don't do good job -subbrands/endorsed brands -talk ab subnranmds, umbrella brands & cobrands: all variations of hierarchy -2 distinctionbsL branded house v. house of brands -branded house form umbrella brand, subbrand are brands dvlped storn gparent brand attached Ex. Apple: carries thru, see logo throughout even tho apple brand unique in itself -endosrsed brands are variation bubsrands which variation branded house -branding liot. Lot of terms used -spectrum branded house to house of brands -subnrand closer branded house strat. -some cases -Disney is endorsed brands -subbrands could take 2 variations -could have prominent identity/parent identity (fedex) v. subbrand (fedex ground/freight) or take subttle version where parent brand displayed subbrand (apple music., watch 0-subnbrands & branded house -subbrands esiest way do brand extension: take parent brand & drop new product categ. Or w subtle name -talk brand extensions: these are ways do brand extension-variation subbrands is endorsed brand -haver parent vrabnd, emphasize subbrand more promintnelay than other 2 approaches -reasons why do things: -if have weak vbrand product categ. `ex. Payment syst & apple: apple doens thvae strong hisotyr but other co.'s done fintech longer & better; in order extend categ. Payments processing: borrow brand equity from parent,. In other categ.'s where thing product have better chance don't need borrow as much parent brand, goal is build brand house of brands -normal mvment left to right: want have brand like pampers don't need P&G displayed Why do you want get house of brnads -want brands be ablwe stand on own , ween brands off parent brand so don't need marriot Ex. -build brna dquity & value apart from co. -fedex chosen remain branded house, given cateh.';s go into commodity/supply chain Ex. Fedex name always part bc bus. Do but P&G has 36 brands each standalone -attempt recent pull brands under P&G umbrella: some ads come out sponsorsed by P&G -P&G supply chain: their trucks labeled P&G -branded house: strong parent identity -endorsed brands: not strong parent identity -house: -co.'s wqnt build standlone brands don't need parent anymore -endorsed: have small parent brand name or endorsement have "Courtyard by" -q. of what are strengths go into Ex. Kellog's has brand strengths make stuff eat for bfast, give advent. Bfast foods so don't need leverage parent brand (endorsed brands) crunchy nut can sy -umbrella brand same thing brnded house: where have parent brand covers everything in portfolio -sometimes known fam. Brands Ex. Dove=umbrella brand https://brandmarketingblog.com/articles/good-branding/umbrella-brand-examples/ Ex. Axe: prominent brand name on packages -umbrella extended many brand categ.'s & taken w/ name 'Mr Clean: pic/icon of brand prominent all brand extensions -when think ab brand extension; need ask are we strong or weak in product categ., will ppl believe we can make mr clean extend into prform. Vheicles -when go into product categ. Need ask do I have competence In all product categ.'s extended to )liquis, dirt, granular: name prominently displayed) -umbrella brands are classic, stonrg prominent brand name all categ.'s they are -ab brand strat. Ex. 3M: on tape, fridges -is corporate strat. Designed carry thru all product categ. -extendability: how easy is it get into categ. & what rely on identity, image or persona.-attempt get brand into new product categ. Not in prev. , on path introduce brand new mktplace->more in record Ex.bfast food co. extend into snakcs, don't need parent brand weight carry w you, ppl will believe its good Ex. apple starts new bfast bar: ex. Of a brand decided not extend but could start new brand -build & start new brand lot in term starup, idea brand extensions is take value parent brand & leverage new product categ.: how is by umbrella branding, endorsed branding, sub brand. Ex. Apple Pay: don't advwrtise but -apple watc: wanted break into watch mkt but figured cant do it yourself partner w rolex -cobranding another ay extend brand, partner w brand has expertise in categ. Want extend to Think own brand extensiosn: -identity, image personality: what are strengths -how going to do brand? Cobranding? Ex/. -try get into segment,try appeal exist motorcycle buyers don't wqnt buy truck but If see logo on truck maybe buy, cobranding options limitless Ex. Nacho cheese doritos locos taco -how you canleverage your strengths go into new product categ. Vid notes: Q in terms of a brand extension that's going tonbe things talked ab so far have do w fit, whether or not a brand extendsion fits w parent brand, many diff. ways do brand extension/variations brand extension & called diff. names -bad brand extensions have occurred recent yrs give idea to give betteridea as what fit might mean Ex.2012 Arizona ioced tea launched nacho & cjheese dip product which maybe consumers want salty snack go w/ sweet iced tea #1. Arizona Nacho and Cheese Dip, 2012 The Logic: Maybe consumers will want a nice salty snack to go with our sweet iced tea! Evaluation: No, they don't. Miss. Why? Consumers couldn't wrap their heads around their delicious sweet tea company offering nacho chips. The association was off, and the company met meek success. #3 Evian Water Bras, 2005 Advertisements REPORT THIS AD Evian water bras, extend brand into bras The Logic: What is every possible way water can be used? Don't just drink it, if you can drink it while wearing it. Evian's thought process was that this water bra would help keep its wearer cool, temperature wise. Evaluation: Evidently, people do not need Evian water to fill up all their cups. Miss. Why? Evian's target market did not see their mineral water bottle company as a credible regulator of certain body part temperatures. The consumers were not interested in buying Evian bottled water to, presumably, fill up their Evian water bras. But look out for Evian Toilet Bowl Water Fillers, probably coming soon. -One classics was flop was colgate toothpaste: colgate launched series kticken entrees (microwavab;e/oven heatable) l #6 Colgate Kitchen Entrees, 1982 The Logic: What if we were both the creator of the problem and also the solver of the problem? Let's give the consumers a reason to brush their teeth! Evaluation: I don't think this is a surprise. Miss. The Logic: People do not want to be thinking about the minty taste of their toothpaste when they are eating a savory chicken salad. Consumers were unable to overcome their strong association of Colgate to toothpaste, causing this product to be a complete fail. It has thankfully been discontinued. #7 Bic Underwear, 1998 The Logic: We already provide disposable pens, razors, and lighters. The next step is obviously disposable underwear. Evaluation: Was The Logic even remotely believable? How did this actually happen? Miss to the Max. Why? Why is my trusted pen producer trying to cloth me? I really don't think this needs explanation. #8: Entenmann's Candles, 2008 The Logic: Do they smell as good as they taste? Is this a new way of dieting? Same great flavor, minus the carbs and the consumption? Evaluation: They smell as good as they taste. Hit. Why? It might seem like a strange association, but the launch of Entenmann's first non-edible product in 2008 was so successful that they released holiday scents the same year. The smell of Entenmann's edible goods is apparently strong enough for consumers to see the company as a trusted scent producer. - #9 Cosmopolitan Yogurt, 1999 The Logic: Women who read Cosmo definitely look like yogurt eaters. Everyone knows if you can sell sex and celebrities as sophisticated, you can sell anything. Advertisements REPORT THIS AD Evaluation: You can't sell just anything. Miss. Why? Cosmo is a magazine company. Yogurt is a food. Never have I read a magazine and thought, "This would be so much better if I could be eating their product as well." The connection and the relevance was lost on consumers. #10 Dr. Pepper BBQ Sauce and Marinate, 2014 The Logic: Most people subconsciously wish their BBQ sauce and marinate taste like Dr. Pepper, I'm sure. Evaluation: Even if they wished it, they didn't like it. Miss. Why? The taste simply didn't appeal to consumers in the way Dr. Pepper had hoped. Michelin Tires & Stars, 1900 Guinness Beers & World Records, 1955 -lot ex,.'s bradn extensions have missed mark over yrs-tyhink ab classic brand vextension, where parent brand extends into new product categ & the parents brand logo prominent on packaing (saw on slim jim fries), classic brand extension ex. Where sehhelf stable meat product =has extended into salty crunchy snack mkt & prominent brand name is in middle of bag -other variations to branding, when think ab classic brand e3xtension (fire fries0 but are variations, sometimes better approach is do a subbrand strat., something where it's a brand extension lite: sub brand Is going be brand oft times endorsed by a parent brand -from quadrant: 4 diff types of brands & brand extension types of products -subbrands connect to master brand in some way ex. Apple: ipad, apple tv, iphone Ex. Micr. Also created subbrands by spinning off office, windows, bing, typ. Some connection bw subbrand & master brand Ex. Iphon eis a brand in itself but connected stgrongly apple brand, -subbrands are form of brand extension, just parent brand doesn't play as prominent of role in subbrand strat. -subbrnad oft times endorsed by parent brand -classic brand extension=slim jim

The Brand-Product Fit

uThe brand-product fit refers to the degree to which the new product category and product features are reflective of the parent brand identity, image and personality. uA good fit enhances the probability of success, while a lack of fit reduces it: uA new product will be more easily accepted if the fit is good. uThe parent brand equity will rise further if the fit is good. uBrand identity. The brand identity defines the competency of the company and sets the limits for the credibility of the promises. uYes: Dove soap extended to shampoos. uNo: Dr. Pepper's marinade. uBrand image. Both tangible product-related and intangible non-product related associations play a role in image fit. uYes: Swiss Army luggage. uNo: Nike's casual shoes. uBrand Personality. Since brand personality basically transcends the product category, a very strong brand personality can be extended to widely different products. uYes: The Virgin brand, "Excitement, Imagination and Daring." There are brand extensions based on brand personality alone. Since brand personality basically transcends the product category, a very strong brand personality can in principle be used for widely different products. If the new product's value proposition and target positioning can use the same brand personality, an extension is usually a logical step. The Virgin example illustrates this. The Virgin brand, by virtue of its charismatic founder, basically stands for and daring. These are personality traits that extend to approximately 40 Virgin brands, including Virgin Atlantic Airways, Virgin Media, Virgin Books, and Virgin Mobileimagination,excitement, (www.virgin.com). Not all the extensions have been successful (see Figure 6.6). But the rationale behind the extensions is that the Virgin brand will attract customers—often younger—who value excitement and imagination (Branson, 2009). uNo: IBM's foray into the personal computer.

: The Acura

uWhen the product line extension goes too far - when it breaks the limits set by the brand identity, image, and personality - a new brand is called for. uThe Japanese auto makers provide one illustration. uHonda was the first Japanese automaker to target the luxury segment. Later, Toyota and Nissan followed suit. uThe basic issue was simple: The Honda brand - and the Japanese country-of-origin - did not have the cachet that competing in the luxury segment would require. uSimply extending the brand name - even with a new sub-brand - seemed insufficient. The research showed the perceptions of the Honda brand, and the contrast with the intended brand characteristics of the higher end model, later named the Acura (see Figure). u u

New Brand: The Acura Example

uWhen the product line extension goes too far - when it breaks the limits set by the brand identity, image, and personality - a new brand is called for. uThe Japanese auto makers provide one illustration. uHonda was the first Japanese automaker to target the luxury segment. Later, Toyota and Nissan followed suit. uThe basic issue was simple: The Honda brand - and the Japanese country-of-origin - did not have the cachet that competing in the luxury segment would require. uSimply extending the brand name - even with a new sub-brand - seemed insufficient. The research showed the perceptions of the Honda brand, and the contrast with the intended brand characteristics of the higher end model, later named the Acura (see Figure). u u

Why Have Coca Cola Extensions Failed?

uWhy has Coca Cola not been able to successfully extend its brand beyond Colas? uThere have been successful line extensions: Diet Cola, Coca Cola Zero, Caffeine Free Coke, C2 Coke...). uCoca Cola also owns a large number of brands - Daisani and Kinley in water, Fanta and Sprite in soft drinks, Georgia in coffee (mainly Japan), MinuteMaid ... uCoke also has merchandising items - hats, umbrellas, shirts...not very successful. uOne reason: Brand name image and personality "fit" with target, but brand identity is with cola and drinks only. -coca cola has tried many yrs get into apparel, been success. W variolus line exctensions not brand extewnsions move into diet/zero sufgar colas but in terms of merchandising hats & items have been less success. -brand image & person. Fit w/ the target but brand identity is only cola & drinks -personality May be something can transfer but if the core competence is make soda then ppl are going ton have prob transferring it to certain apparel, not say doesn't work diff. ex.'s but for coca colas it doesnt

What is a brand extension?

•"Brand extension" describes the case where an established brand is used to introduce a new product from a different product category. •Ex. Swiss Army for luggage. The "Swiss Army" brand was known for knives, then extended into watches, then into luggage. •A brand extension is supposed to accomplish two things: •It helps the new product's market acceptance. •It also helps grow the value of the extended parent brand. •Brand extension correspond to a strategy of product development in Ansoff's matrix. •Brand extension should not be confused with product line extensions in the same product category (session five).

What New Products Need An Extension?

•Assuming that there is a good product and brand fit, what kind of new products gain most from being supported by an established brand? •Factors to consider: •How new to the market is the new product? •How fast is the market growing? •How competitive is the market? •Generally, the usefulness of a brand extension is greater... •the newer the product is to potential customers. •the slower the market growth is. •the more competitive the market is. •These three factors prove obstacles for the acceptance of the new product without the extension support.

Umbrella Branding

•Brand extensions quite naturally lead to what is often called "umbrella branding." •Umbrella branding means one over-arching name for a set of products, with sub-brands "under" the umbrella. •Example: L'Oreal Paris, the French cosmetics company, uses it's corporate brand name on a variety of products:s •Product Examples: •In hair care: L'Oreal EverPure , L'Oreal VivePro, L'Oreal Kids. •In skin care: L'Oreal RevitaLift and L'Oreal Age Perfect. •In cosmetics: L'Oreal True Match Naturale and L'Oreal Colour Riche. Umbrella Branding is when have parent brand, a parent rband is similar branded house Ex. Virgin: has name on millions products, most failed (virgin travel store, channel, mobile, galactic: all those brands have the virgin brand, simil. Subbrands but entire brand portfolio virgin has is assoc. & attached to the parent co. brand->umbrella or parent brand strat. -umbrella branding means one overarching name for a set of products Ex. 3M/GE: GE sells everything frieges to aircraft engoines., all have promineint GE logo on consumer side of things, have prominent GE logo on the device, many diff. devicces/mkts GE in but all share master parent umbrella brand Product ex.'s In hair care: L'Oreal EverPure , L'Oreal VivePro, L'Oreal Kids. In skin care: L'Oreal RevitaLift and L'Oreal Age Perfect. In cosmetics: L'Oreal True Match Naturale and L'Oreal Colour Riche. -but all loreal, umbrella branding strat. Co.'s take umbrella branding strat->call this branded house strat.:everything in the house carries parent brand bname, subtle diff.'s bw endoprsed brands & subbrands but this is stronger assoc.'s •The umbrella brand essentially endorses the sub-brands under its wings. •As in all brand extension cases, umbrella branding involves judging how far a particular brand can be stretched. •For example, L'Oreal in 1965 acquired another French personal care company, Garnier, which offered products in similar categories to L'Oreal. For example, •In hair care, Garnier Fructis. •In skin care, Garnier Nutritionist. •In this instance, L'Oreal decided to keep the acquired name and position the Garnier brand as a value brand below the "flagship" L'Oreal brand. As in all brand extension cases, umbrella branding involves judging how far a particular brand can be stretched. Ex. Does it make sense for virgin to get into a product categ. Might not fit w/ image the brand person. Of virgin & Richard branson •Other companies have decided against using umbrella brands. •Notable examples: P&G and Unilever, large CPG companies whose corporate names are virtually invisible on their products. Reasons: •Need to evaluate the performance of the individual brand managers. •An umbrella hampers managerial initiatives by limiting independence. •Spillover of an accidental product failure can be contained. •Con: Lack of coordination (countered by "category management.") •The need for coordination depends on the overlaps in the market segments for the different products. •The overlaps can be for the same people, in which case brand loyalty can be exploited an umbrella. ••The overlap could also be for different consumers with similar emotional needs satisfied by the brand identity and image, again favoring an umbrella brand. Other companies have decided against using umbrella brands. -instead they adapt a house of brands strat.: have single co. w large portfolio of brands (like P&G does) but not one of those brands have P&G name on it: the parent brand name (P&G_) do9esnt appear on tide or any P&G products, same unilever & other branding co.'s Notable examples: P&G and Unilever, large CPG companies whose corporate names are virtually invisible on their products. Reasons: -like keep each brand in siloh for perfor. Reasons: easier evaluate P&L of indiv. Brand as standalone brand as opposed mixed w/ parent brand Need to evaluate the performance of the individual brand managers. An umbrella hampers managerial initiatives by limiting independence. Spillover of an accidental product failure can be contained. Ex. If tide gets in huge scandal wont affect P&G's other branded products Con to house of brands approach: Lack of coordination (countered by "category management.") Ex. Unilever brands: for P&G to have such large product portfolio

Parent Brand Extendibility

•Every brand has a boundary beyond which it should not be extended. As we have seen, the brand's character (identity, image, and personality) sets limits. •Brands with an identity not tied so closely to a narrow product-market category tend to have greater extendibility. Examples of good and bad: •Samsung stays close to its core manufacturing identity (semi-conductors, televisions, mobile phones, and home appliances). Good - but makes it harder to build an attractive consumer brand. •Apple's identity is tied to the "cool" brand: The success of the iPod was followed by iPhone and the iPad - good. •IBM's business-to-business competence did not link up well with the skills needed for consumer sales and distribution channels of the PCs - not good. •Sony, with brand identity in premium consumer electronics, extended into movies, music, and entertainment - not good.

Co-Branding Pros & Cons

•Pros •Each of the brands gains goodwill from the partner. •Each of the brands gains potential customers. •Cost savings, especially for the more powerful brand. •Helps a new brand "piggy-back" on a better known brand. •Cons: •Lack of complementary fit will hurt the brand. •Co-brand's problems will spillover to the brand. •Solution by some firms: •First, co-brand only with companies that share complementary values. •Second, co-brand only with products that hold best-in-class status. •Third, retain full review and approval rights on all communications -some benefits cobranding: -financial benefits (provide customers greater value), -provide customers with rgeater value -improvide on a property's overall image -strengthen an operation's compet. Position -create operational advantages -cobranding is simil. Brand extensions in that needs be fit b/w the 2 parent brands, if there is this fit like Bacardi rum & coca cola that's going to make sense Examples recent cobranding partnerships -Go pro & red bull: both appeal to an adventurous liufestyle Ex. Levis & Google: Levis teamed up w google to entera wearable tech. mkt Ex. Spotify & uber Ex., Google3 & Luxoticca Each of the brands gains potential customers. -if have gopro & redbull team up, ppl who have been loyal redbull customers will see this partnership & may be more inclined to purchase gopro camera & vice versa Cost savings, especially for the more powerful brand. -able to rfecruit new customers w cobranded partnerhips, sometimes advertising costs going be shared Helps a new brand "piggy-back" on a better known brand. -partic. Things like pcs, if have intel inside logo on a elss knwon lapotop, this will instill sense of trust in ppl, they knpow this will be quality internal processor that's going work & do what says going do Cons -Lack of complementary fit will hurt the brand. -if one of the branded partners in cobranding r/s have a brand scandeal, this can spilliover & hurt brand Co-brand's problems will spillover to the brand. Ex. Classif ccobranding bw lego (manufcatur plastic blocks) & shell(oil co.), lego was going to make blovks you can assemble make gasoline station, shell was going sell lego products in its gas stations thru US: cerated uproar from ppl concerned ab oil co.'s: lego never saw this so cobranding enxded quick -some solutions firms can engage in: First, co-brand only with companies that share complementary values. Ex. Using environ ex.: co.'s for example suing environ. Ex. Co.'s that might have strong corporate social respon. Position in the mktplace, 2 co.'s teaming up make sense Ex. co-brand only with products that hold best-in-class status. -reduces risk cobranding failure Third, retain full review and approval rights on all communications -import., oft times requires extensive contract negotiations

Parent Brand Value Growth Pros & Cons

•Pros: •1. Increases the brand value by expanding brand reach. •2. Adds desirable associations of size to brand identity, image, and personality. Cons: •. Bad fit may dilute brand equity by creating negative associations. •2. New product failure will generate negative feedback to parent brand.

Research for Brand Extensions

•Qualitative research. The first step is to try to find out more precisely what kind of associations the potential parent brand elicits. •Projective techniques are common for this, including in-depth interviews. •Focus groups are also common when assessing personality or style of an existing brand or a suggested name. •Quantitative analysis. Standard surveys of representative samples of target audience members are used in a second step with three main goals: •1. confirmation of the brand identity, image and personality that the qualitative research has suggested. •2. checking how respondents think the extended brand would perform in the category. •3. assessing the pros and cons of the extension for the parent brand's equity. •The research should try to elicit some kind of intention to trial and purchase at different price points, however unreliable such responses may be. ·Qualitative: focus groups, interviews, projective oprojective: gets at information that people were unwilling or unable to provide (Zmet in a way, but more along the lines of surveys about shoplifting or personal information) oA lot of brand research that is done is in a qualitative manner because it is hard to get information from surveys

Which Brand to Extend?

•Several factors determine whether a brand is good for extension. •1. Is the brand well-known with strong reputation? •As research and common sense say, a weak brand does not add much power over a new brand. -need have strong parent brand in order for the brand extension to capitalize on that brand equity, if don't have strong parent brand any brand extensuions not likelty to work •2. Is the brand's present customers also in the target segment for the new product? •If the new product targets another segment, the brand extension encounters new customers who are likely to have less knowledge and affinity with the parent brand. -this is import., we're talk ab product dvlpt strat., if have brand equity w/ group of ppl these are same ppl want target Ex. Slim jims: Is my target mkt for slim jim consumer going to be simil. To the target mkt for the slim jim salty crunchy snakc consumer? •3. Does the brand have a loyal following? •Even if the target customers come from the same segment, if brand loyalty is weak, the drawing power is not very strong. •4. Does the brand identity associations fit with the new product category involved? •A soap brand such as Dove can be extended into shampoo - but should not be extended into toothpaste since soap in the mouth has a bad association. •5. Does the brand have image and personality associations that will be negatives in the new target segment? •If a brand has strong country affiliation (American Express is "American"), is this a positive or negative in the new segment? -If a brand has strong country affiliation /is being tied to America going to limit that product's success in foreign mkts •6. Is the new product's positioning compatible with the existing brand's? •A top-of-the-line brand positioning requires strong performance. If the new product has a low position target, the existing brand is likely to be diluted. -=don't wanna target high end product like Mercedes & have Mercedes extend into CPG like cereal, water as there is lack of fit across all 3 levels of brand identity, image & assoc.

1. How A Brand Extension Reduces Risk

•Where the original product that helped build the brand identity and the new product draw on the same core competence in the company, the chances are that consumers perceive the functional "fit" as good. •If the brand extension credibly enables reduction of the new and important functional risk, it has passed the first test. •The second question of "fit" involves the brand's ability to reduce psychological risks and enhance self-expression. The question is whether the brand itself "fits" the new product -its ab reducing functional risks, reducing psychol. Risks, & enhancing self esteem -lot of fashion brands have extended into diff. product types & categ.'s are good ex.'s of this •This second test is to make sure that the brand image and personality are suitable for the new product.. •The issue is whether the brand can contribute to the new product's likelihood of success. •When both tests are passed, the brand extensions will not only help the new product acceptance, but also raise the brand's value and equity.