Branding Branding Continued…Continued…

Dr. Cara PetersDr. Cara Peters

BADM 672DBADM 672D

Brand ExtensionsBrand Extensions

Take equity of the brand and use it Take equity of the brand and use it in another contextin another context

Advantages: Advantages: Save money, instant recognition, more Save money, instant recognition, more

easily build market shareeasily build market share Normal new brand introduction costs: $50 Normal new brand introduction costs: $50

million - $1 billion for a large firmmillion - $1 billion for a large firm May rejuvenate old brand May rejuvenate old brand

General Mills exampleGeneral Mills example

Brand ExtensionsBrand Extensions

Works well for brands with higher Works well for brands with higher emotional connectionsemotional connections Built on personality, values, etc.Built on personality, values, etc.

Keys to successKeys to success Compelling brand proposition in new Compelling brand proposition in new

categorycategory Sufficient competence in new categorySufficient competence in new category

““Fit” of brand in new categoryFit” of brand in new category

Brand ExtensionsBrand Extensions

Risks: Risks: Failure of new product may hurt brandFailure of new product may hurt brand Lose focus of brandLose focus of brand Damage perceptions of brandDamage perceptions of brand CannibalizationCannibalization

Least risky: related product in same marketLeast risky: related product in same market Most risky: unrelated product in new Most risky: unrelated product in new

marketmarket Honda= Cars vs. Jeep=Luggage Honda= Cars vs. Jeep=Luggage

Ask YourselfAsk Yourself

What does your brand stand for in the What does your brand stand for in the mind of the consumer?mind of the consumer?

What could you potentially make it What could you potentially make it stand for?stand for?

In what markets would your brand In what markets would your brand profile match the needs of consumers?profile match the needs of consumers?

Are those segments attractive?Are those segments attractive? Could you have leading edge Could you have leading edge

competence in those markets?competence in those markets?

Co-branding & Ingredient Co-branding & Ingredient BrandingBranding

Co-brandingCo-branding

A partnership between two brands: A partnership between two brands: HPiPaQHPiPaQ

Ingredient brandingIngredient branding

Inclusion of one brand within the Inclusion of one brand within the other: Intel other: Intel