Beruflich Dokumente
Kultur Dokumente
Presented by:
Mohammad Ismail Asif
Brand Extensions
A brand extension occurs when a firm uses an
established brand name to introduce a new
product.
When a brand is combined with an existing brand
the brand extension can be also called sub-brand.
An existing brand that gives birth to a brand
extension is the parent brand.
If the parent brand is already associated with
multiple products through brand extension then
it may also be called a family brand.
Brand Extensions
Brand extension classification
Line extension
Using a new product to target a new market segment
within the same product category, the parent brand
currently serve. A line extension often adds a different
flavour, or ingredient variety, different form or size.
Brand Extensions
Category extension
Using the parent brand to enter in a different product
category from the one it currently serves.
New
Products
Current
Markets
Market
penetration
strategy
Product
development
strategy
New
Markets
Market
development
strategy
Diversification
strategy
McDonalds Example
Market Penetration
- better, not bigger
Market Development
- Global expansion and adaptation of cultural
preferences and regional taste.
Product Development
- Offering healthier options, Go Active Campaign
Diversification
- McCafe,McTreat
Advantages of Extensions
Facilitate new product acceptance
Improve brand image
Reduce risk perceived by customers
Increase the probability of gaining distribution and
trial
Increase efficiency of promotional expenditures
Reduce costs of introductory and follow-up
marketing programs
Avoid cost of developing a new brand
Allow for packaging and labeling efficiencies
Permit consumer variety seeking
Disadvantages of Extensions
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