A detailed look at brand management

Type :

Theses

Pages :

53 pages

Format :

.doc

Published date :

05/12/2009

Category :

Business & market

Sub category :

Management

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Summary :

Executive summary
Introduction to brands
History of brands
What is branding?
Why is it important to develop a brand for a product or service?
1. Differentiation
2. Conveys value
3. Builds brand loyalty
4. Builds pride
Brand extensions
Advantages of brand extension
1. Facilitate new product acceptance
2. Improves brand image
3. Increase efficiency of promotional expenditures
4. Reduce cost of introductory and follow-up marketing programs
Disadvantages of brand extensions
1. Can confuse or frustrate consumers
2. Can encounter retailer resistance
3. Can fail and hurt parent brand image
4. Can succeed but cannibalize sales of parent brand
5. Can succeed but hurt the image of the parent brand
6. Can dilute brand meaning
The good, bad and ugly extensions
1. The good extensions
2. The bad
3. The ugly
What's important to consumers?
Brand extendibility
1. Step 1: Determine key associations.
2. Step 2: Develop proxies
3. Step 3: Conduct research
4. Step 4: Create guidelines
What brand Virgin stands for?
Brand ego tripping of Virgin
Lessons to learn from Virgin's brand ego trip
Conceiving Barbie
Four decades of Barbie
360 degree marketing
Erosion of the brand image
The best and the worst

Abstract

Marketers are now finding it extremely difficult to create new brands. The brand building costs tend to be very high. At the same time the developments at the demand side are creating pressures on marketers to fine tune their offerings as per unique needs of target customs. In order to cope with demand side pressures and cost constraints the firms are adopting extension route to growth. That is when they extend a successful brand name to promote a product in an unrelated category. Such a move is based on the logic that a brand can stand for two things. In reality, if a brand stands for something, it is difficult for to acquire a second meaning at the same time. This goes against the fundamentals of positioning and perception.

brand extension strategy is pursued by the marketers very vigorously these days. It involves using an existing brand name to launch a product in a different category. Here the brand remains constant but product category tends to be variable. brand extensions are justified on the basis of promotional efficiency, savings on product launches, consumer benefits and returns. Various types of extensions could be identified such as product form, companion product, expertise, customer franchise, and brand image type. An extension can be good when extended product succeeds and parent brand benefits. A bad extension is one which fails to lift off while an ugly extension not only fails to lift off; it also damages the parent brand.

Extensions involve transfer of parent brand associations to the extensions. The nature of parent brand is crucial determinant of extension success. Therefore, before embarking upon extension program, brand's extendibility must be judged. A brand's extendibility depends upon its character whether the brand is a product brand, formula brand, know-how brand or an interest brand. Brands which are symbolic and philosophical are easier to extend into unrelated product categories. The product or know-how brands have narrow zone of extension. The parent brand and the extension must enjoy a good relevance. In the absence of relevance, the brand beliefs and attitudes are unlikely to be successfully transferred to the extension candidate.