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6 Cards in this Set
- Front
- Back
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Extension |
>World is operating in explicitly dynamic environment that demands constant adjustments and responses by organisations (vukosovic, 2012) >requires brand manager to constantly manage, protect and enhance brand names (kerin et Al, 1996) >strong brand equity creates platform for extension into categories that brands can develop into (Keller et al, 2001) |
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Advantages to extension |
Can create SCA Dominant form of new product introduction Can be used to strategically grow brand Expand market share Assist increasing consumer acceptance to enhance new product Reduces risk for new products Spreads advertising, lowers promotion costs New segments of market Repertoire for consumer to choose from |
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Disadvantages to extension |
Loss of reliability if name is extended too far Risk new product may damage original brand Less awareness and trial because management may not provide enough investment for intro of new product Extensions must have advantage over competitive brand to prevent failure |
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Vertical Extensions |
>Involves introducing an extension in same category as the core brand but at different price point/quality level (Keller and Aaker, 1992) >Less risky >cathedral cheese - was beginning to appear fragmented across portfolio >got brand management agency to evaluate brand identy and design to be more befitting of brand that size and stature of cathedral city >more easily identifiabke and connects meaningfully with customer >launched a range of different flavours in same category, at different price points |
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Horizontal |
>application of existing brand name to new product introduction, either in similar class or in category completly new to form >runs risk of being stretched too far-risks diluting associations and eroding customer base >dove grew to become brand known solely for its bars of soap to being superpower in shampoo, deodorant and body wash markets >200 mill to 1 - billion with aggressive expansion strategy >successfully carved out niche for men despite being originally targeted for women. >distinct value to target audience |
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Figuring out the "fit" (Azal, 2013) |
>choice of method depends on how risk averse organisation is but also strength and existing brand awareness >consumers likely to embrace product if they see compatibility to master brand >risk stretching associations and eroding customer base >important to maintain brand standards, respect heritage, perserve essence and avoid exploitation. >must work out if extension will provide an extra SCA |
