The brand encompasses a number of product lines, including blades and razors, toiletries, writing instruments and lighters. Now we'd like to add additional products, but don't how to go about it. Brand Extensions Brand extension is the use of an established brand name in new product categories. Your competitors may include different features, a wider range of sizes or product variations aimed at different sectors of the market, such as luxury or budget versions. In fact, line extensions may be the answer to building sales and moving your company in a whole new direction.
This gives Gillette a wide product mix. We focus on sharing thought provoking expertise that promotes an elevated conversation on brand strategy and brand management and fosters community among marketers. Likewise, you may have a lifelong affinity for Brand A orange juice. For example, Fairy owned by Unilever was extended from a washing-up liquid brand to become a washing powder brand too. When a certain type of product on the market ahead of the status, the brand has become a strong brand, in the minds of consumers will have a special image orientation, or even become a synonym for such products.
This is because a dilution of the brand capital may occur by the realization of certain undesirable associations as well as by the weakening of the already existing associations. Most of these misfires die in limited test market anyway. This strategy is employed in order to leverage as well as increase brand equity Pitta and Katsanis,1995. Other experts however maintain that the concept of brand extension is very critical to a company's growth strategy. Know Your Product's Life Cycle Every product you introduce has a life cycle of its own-some long and others quite short. Note how the Olay brand entered the soap business: Risks of Brand Extensions Much has been written as scare tactics about the negatives and risks of brand extension. A brand is short is an identifier of the seller or the maker.
A: There are many reasons to add new products-or line extensions-to your company's product mix. Brand Extension is the use of an established brand name in new product categories. With the prohibitive cost of establishing new brands just ask ex dot-coms , brand extensions save companies money. There are economies of scale as advertising for core brand and its extension reinforces each other. In other words, purchase intention is created.
There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new products assuming that the spin-off effects from the original brand name will compensate. Competitive Leverage: The new items must stake up favorably to established items in the new category. An organization must research the product categories in which the established brand name will work. The successful brand extension can then result in. A successful brand extension should seem like a natural progression for the brand and so to make it loosely similar to the previous product would be a wise idea otherwise the original brand may be damaged.
The work of Dacin and Smith 1994,p. A brand differentiate these products from those of competitors. It also allows you to accept potential citations to this item that we are uncertain about. Viot 2007 went ahead to explain that the concept of brand extension can cause a lot of damage to a given brand. Advertising, selling and promotional costs are reduced.
If the brand extensions have no advantage over competitive brands in the new category, then it will fail. Can a brand be all things to all people? Provision of an energy source for a given brand Should a certain brand image be weak, the use of brand extension may give it anew lifeline. Brands not production capabilities are the prime barrier to entry into most categories. The enhancement of the level of brand visibility Whenever a brand appears in another category of products and services, the strategy can be more efficient and effective method of brand building as opposed to using money to launch rigorous advertisement campaigns. A discussion of the key points is presented and then a final conclusion to hammer out the reason for the need to implement the strategy Brand extension, which entails the use of a given brand name which is established in a given product class in entering another product class is noted to be hugely beneficial to several organizations Tauber,1988. The image of the parent brand is enhanced.
Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brands relevance and appeal. Ask your sales representatives or contact customers directly to find out if your current product range meets their needs and to identify opportunities to extend your product line. Let's use Gillette as an example. This new category to which the brand is extended can be related or unrelated to the existing product categories. The extension would therefore benefits from the fame and the resulting excellent opinion in the creation of a compelling amount of value proposition in the newly created market segment Taylor,2004,p. In the end of the debate, the paper indicates why it is better to adopt the extension strategy as opposed to shunning it due to its numerous demerits. The strength of enterprises and brand extension to or incompatible with the original market has nothing to do with the products, on the contrary the psychological orientation of consumers.