Session10Handout

Information about Session10Handout

Published on January 14, 2008

Author: Tutu1

Source: authorstream.com

Content

New products and brand extensions :  New products and brand extensions Session 8 For today:  For today Brand extension and new product development In class – Brand Extension December 5th Mary Weisnewski, Methodologie Overall, what is our goal as brand managers?:  Overall, what is our goal as brand managers? Create brand equity, of course!! We have talked about creating BE using the IBM How do we sustain it? Brand Extensions: How does a firm grow?:  Brand Extensions: How does a firm grow? A firm can: Focus on current products and markets Market penetration strategy Put existing products into new markets Market development strategy Put new products into existing markets Product development strategy Put new products into new markets Diversification strategy Some Terminology:  Some Terminology Brand Extension - A firm uses an established Brand name to introduce a new product Harley-Davidson clothing Sub-Brand - A new Brand is combined with an existing Brand Dockers Parent Brand – The pre-existing Brand that gives birth to the sub-Brand Family Brand – Parent Brand of multiple extensions Categories of Brand Extensions:  Categories of Brand Extensions Line extension Parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand H&S dry scalp shampoo Category extension Parent brand is used to enter a different product category from that currently served by the parent brand Swiss army watches, Porsche bicycles Compare these extensions:  Compare these extensions Extension Failures:  Extension Failures Campbell's tomato sauce LifeSavers chewing gum Cracker Jack cereal Harley Davidson wine coolers Hidden Valley Ranch frozen entrees Bic perfumes Ben-Gay aspirin Kleenex diapers Levi's Tailored Classics suits Nautilus athletic shoes Domino's fruit-flavored bubble gum Smucker’s ketchup Fruit of the Loom laundry detergent Tauber’s strategies for category extensions:  Tauber’s strategies for category extensions Same product in a different form Introduce products that contain the Brand’s distinctive taste, ingredient or component Companion products Capitalize on the firms perceived expertise Distinct benefit, attribute, or feature Image or prestige Advantages of Extensions:  Advantages of Extensions Extensions can potentially provide the following benefits to facilitate new product acceptance: Reduce risk perceived by customers & distributors Decrease cost of gaining distribution & trial Increase efficiency of promotional expenditures Avoid cost (and risk) of developing new names Allow for packaging and labeling efficiencies Variety-seeking Advantages of Extensions:  Advantages of Extensions Enhance the parent brand image Improve strength, favorability, and uniqueness of brand associations Improve perceptions of company credibility Convey broader brand meaning to consumers Clarify core benefit proposition and business definition of the company Bring new customers into the franchise and increase market coverage Disadvantages of Extensions:  Disadvantages of Extensions Extensions have risks, too. They can fail. Moreover, extensions can potentially result in the following costs: Cannibalize sales of the parent brand Hurt the image of the parent brand If the extension fails Even if the extension is successful Forego the chance to develop a new brand name or market the parent brand differently (opportunity cost) Brand Extension Assumptions:  In introducing a brand extension, it is typically assumed that: Consumers have some awareness of and positive associations about the brand in memory Some of these positive associations are evoked by the brand extension Negative associations are not transferred from the parent brand Negative associations are not created by the brand extension Brand Extension Assumptions When are Brand Extensions Appropriate?:  When are Brand Extensions Appropriate? When Prior BE exists Consumers must see some “fit” between the proposed extension and the parent brand The proposed extension contributes to the overall brand equity of the parent brand No dilution of existing SKS Model of Extension Evaluations:  Model of Extension Evaluations Creating extension equity depends on 3 factors: Salience of parent brand associations in extension context Favorability of any inferred associations in the extension context Uniqueness of any inferred associations in the extension context Brand Extension – In class:  Brand Extension – In class Spend the remaining time coming up with a BE for your brand Get ready to discuss.

Related presentations


Other presentations created by Tutu1

Buddhism in Pop Culture
07. 02. 2008
0 views

Buddhism in Pop Culture

Buddhist Attitude
17. 01. 2008
0 views

Buddhist Attitude

TSP Financial Planning 04 2007
11. 01. 2008
0 views

TSP Financial Planning 04 2007

summerpacket
11. 01. 2008
0 views

summerpacket

OB 03
13. 01. 2008
0 views

OB 03

The Human Response
15. 01. 2008
0 views

The Human Response

M 44 for website
15. 01. 2008
0 views

M 44 for website

abccourse
18. 01. 2008
0 views

abccourse

Welding Cutting Brazing
19. 01. 2008
0 views

Welding Cutting Brazing

FireWatchTraining
20. 01. 2008
0 views

FireWatchTraining

sports
23. 01. 2008
0 views

sports

chinaintfree062606
23. 01. 2008
0 views

chinaintfree062606

act pres eu
05. 02. 2008
0 views

act pres eu

cbch8
28. 01. 2008
0 views

cbch8

2004 06 07 FogScreen
31. 01. 2008
0 views

2004 06 07 FogScreen

Can I See You Now
04. 02. 2008
0 views

Can I See You Now

Stone Francisco
07. 02. 2008
0 views

Stone Francisco

anime
18. 02. 2008
0 views

anime

B 7006 Part 2 Costs
20. 02. 2008
0 views

B 7006 Part 2 Costs

Self Portraits HS Example MIT
26. 02. 2008
0 views

Self Portraits HS Example MIT

ErgonomicsintheTrenc hesI2007
05. 03. 2008
0 views

ErgonomicsintheTrenc hesI2007

Raptors final pres
24. 03. 2008
0 views

Raptors final pres

Peds Day1 04 Lujan Immunizations
03. 04. 2008
0 views

Peds Day1 04 Lujan Immunizations

Business Integrity and A aa
27. 03. 2008
0 views

Business Integrity and A aa

uscghistory
14. 04. 2008
0 views

uscghistory

about the project
15. 04. 2008
0 views

about the project

val10
17. 04. 2008
0 views

val10

Duan
22. 04. 2008
0 views

Duan

mtg152Item 721
23. 04. 2008
0 views

mtg152Item 721

The China Maritime Industry
24. 04. 2008
0 views

The China Maritime Industry

5Traderules
07. 05. 2008
0 views

5Traderules

Fleming
14. 03. 2008
0 views

Fleming

callaghan pres cagont
02. 05. 2008
0 views

callaghan pres cagont

sun weijia
02. 05. 2008
0 views

sun weijia

Presentazione Bruxelles 1
22. 01. 2008
0 views

Presentazione Bruxelles 1

Minges
28. 01. 2008
0 views

Minges

Political Patterns Part II
22. 01. 2008
0 views

Political Patterns Part II

Bates2
25. 02. 2008
0 views

Bates2

dy marcel
04. 02. 2008
0 views

dy marcel

Carlawparkv03
14. 02. 2008
0 views

Carlawparkv03

Creative Sector 95
24. 01. 2008
0 views

Creative Sector 95