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