brand extension- virgin
TRANSCRIPT
![Page 1: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/1.jpg)
![Page 2: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/2.jpg)
Are There Any Boundaries To Virgin.??
![Page 3: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/3.jpg)
![Page 4: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/4.jpg)
Virgin Timeline
![Page 5: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/5.jpg)
Virgin Growth Strategy
The time to go into a new business is when its badly run by others
-Virgin
![Page 6: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/6.jpg)
Growth Through New Brand
House OF BrandsUse of Different brand
names for different categories of products
![Page 7: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/7.jpg)
Growth Through Sub Brand
![Page 8: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/8.jpg)
Growth Through Same Brand
Branded HouseEvery new
venture is launched with the name of the parent company
![Page 9: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/9.jpg)
Improved Image• Consumers build
perceptions• Likely to expect same
performance
Reduced Risk• Less perceived risk with a
known brand family• Credibility through
experience
Higher Acceptance• Higher probability of trial
and distribution• Brand Reputation a key
selection criterion in supermarkets
Why Branded House..??
![Page 10: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/10.jpg)
Higher Promotional Efficiency• Ad-to-Sales ratio 10% for
extension as compared to 19% for new Brand
• Awareness of brand not required; efforts concentrate on product
Packaging and labeling efficiencies• Create a billboard effect• Cost saved by using similar
designs effectively
Introductory and follow-up efforts reduced• Brands can save upto 30-40% of
launch cost• Association with multiple
brands allows for less follow-up efforts
Why Branded House..??
![Page 11: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/11.jpg)
Increased Market• New customers in Brand
Franchise• Diversified revenue
sources
Revitalized Brand• Extensions renew interest
in a brand• Spillover Effects help
mature products to earn more
Easy Extensions• A Branded House
philosophy helps in easy future extensions
• Higher recognition and acceptance
Why Branded House..??
![Page 12: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/12.jpg)
Virgin Communication
![Page 13: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/13.jpg)
• Suitability issues with related extensions• New extensions may not get shelf space
Confused Customers
• Only top-selling brands preferred• Might require additional shelf cost
Retailer Resistance
• Extension might prove to be a failure• Immediate effect on the parent brand
Hurt Parent Brand Image
Risks With Brand Extension
![Page 14: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/14.jpg)
• The extension might be a success• Overlap of customers may lead to cannibalisation
Cannibalize Parent Sales
• The extension may be a success in a non-related industry• Might weaken the belongingness with original industry
Diminish Identification
• Premium image in one industry• The extension might be low end product and dilute brand
Dilute Brand Meaning
Risks With Brand Extension
![Page 15: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/15.jpg)
Failed Virgin Brands
![Page 16: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/16.jpg)
Failed Virgin Brands
![Page 17: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/17.jpg)
Extension Guidelines
Favorable Parent Brand + Extension Fit= Success
![Page 18: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/18.jpg)
Extension GuidelinesBrands Seen as Prototypical for
a product Difficult to Extend
![Page 19: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/19.jpg)
Extension GuidelinesVertical Extensions can be difficult
And may require Sub-Branding
![Page 20: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/20.jpg)
Conclusion
Brand Extension with due
diligence and thought-out action plan
Failure due to over
exploitation of brand
extension
![Page 21: Brand Extension- Virgin](https://reader033.vdocuments.site/reader033/viewer/2022061615/58ab33c01a28abb64d8b56e1/html5/thumbnails/21.jpg)
• Created by Shubham Vijay during Brand Management course under the guidance of Prof. Sameer Mathur (IIM Lucknow)
Disclaimer