Professional Documents
Culture Documents
segments; brand repositioning may or may not involve modifying the product.
For instance, Dettol toilet soap was positioned as a beauty soap initially. This was not in
line with its core values. Dettol, the parent brand (anti-septic liquid) was known for its
ability to heal cuts and gashes. The extension's 'beauty' positioning was not in tune with
the parent’s “germ-kill” positioning.
The soap, therefore, had to be repositioned as a “germ-kill” soap (“bath for grimy
occasions'') and it fared extremely well afterrepositioning. Here, the soap had to be
repositioned for image mismatch. There are several other reasons for repositioning. Often
falling or stagnant sales is responsible for repositioning exercises.
An Art of creating a distinct image for a Product in the Minds of the customers.
Some marketing folks may think of "rebranding" as the act of coming up with
new logos, name, tag lines, colors, packaging, etc. Or it could mean to some
purchasing a product manufactured by someone else and putting your own brand
on it. And it's always possible that "rebranding" could mean to someone the same
thing as repositioning - taken very loosely.
line extension
Multiproduct branding strategy whereby a firm markets one or more new products under an
already established and well known brand name. The objective is to serve different
customer needs or market segments while taking advantage of the widespread name
recognition of the original brand. For example, maker of a popular perfume may introduce
shampoos, bath soaps, body powders, etc., under the perfume's name. Line extension is
encouraged by some marketing experts and frowned upon by others. Also called brand
extension.
A product line extension is the use of an established product’s brand name for a new
item in the same product category.
Line Extensions occur when a company introduces additional items in the same product
category under the same brand name such as new flavors, forms, colors, added
ingredients, package sizes. This is as opposed to brand extension which is a new product
in a totally different product category.
Examples include
line extension
Extension of an existing product line or brand by the addition of a new modification, such
as a new flavour. An example would be the addition to the existing product line of a milk
chocolate version of a chocolate bar. An advantage of line extension is that it protects a
product line from competition by anticipating a rival's product development. However, a
possible disadvantage is that, rather than adding additional customers, it merely spreads
the existing customers over a wider product range.
Brand extension
Brand extension or brand stretching is a marketing strategy in which a firm marketing a
product with a well-developed image uses the same brand name in a different
product category. The new product is called a spin-off. Organizations use this
strategy to increase and leverage brand equity (definition: the net worth and long-
term sustainability just from the renowned name). An example of a brand extension
is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand
name and increases profitability from offerings in more than one product category.
Product extensions are versions of the same parent product that serve a
segment of the target market and increase the variety of an offering. An
example of a product extension is Coke vs. Diet Coke in same product
category of soft drinks. This tactic is undertaken due to the brand loyalty
and brand awareness they enjoy consumers are more likely to buy a new
product that has a tried and trusted brand name on it. This means the market
is catered for as they are receiving a product from a brand they trust and
Coca Cola is catered for as they can increase their product portfolio and they
have a larger hold over the market in which they are performing in.
Marketers have long recognised that strong brand names that deliver higher sales and profits
(i.e. those that have brand equity) have the potential to work their magic on other products.
The two options for doing this are usually called “brand extension” and “brand stretching”.
Brand extension
Brand extension refers to the use of a successful brand name to launch a new or modified
product in a same broad market.
A successful brand helps a company enter new product categories more easily.
For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to
become a washing powder brand too.
The Lucozade brand has undergone a very successful brand extension from children’s health
drink to an energy drink and sports drink.
Brand stretching
Brand stretching refers to the use of an established brand name for products in unrelated
markets.
For example the move by Yamaha (originally a Japanese manufacturer of motorbikes) into
branded hi-fi equipment, pianos and sports equipment.
• Distributors may perceive there is less risk with a new product if it carries a familiar brand
name. If a new food product carries the Heinz brand, it is likely that customers will buy it
• Customers will associate the quality of the established brand name with the new product.
They will be more likely to trust the new product.
• The new product will attract quicker customer awareness and willingness to trial or sample
the product
New Brands
Jo Malone, one of Britain's most successful female entrepreneurs, comes to BBC One
next spring with a new four-part series which gives budding entrepreneurs the chance to
take a product they have created to the next level in New Brands.
Jo is looking for people who have an original product or range which they believe has the
potential to make the leap from kitchen table to high street. Those who are chosen by Jo
will benefit from her expertise, experience and guidance.
Each of the four episodes will focus on a different category, for example, home & garden,
food & drink, children, and accessories.
Once Jo has selected those who she believes to have real potential, she will guide them
through the world of branding, public relations and business, and prepare them for a pitch
to a major retailer. Will they be able to convince them to take a chance on a new product
during this period of commercial uncertainty?
Growing and sustaining a business during a time of recession is a great challenge. They
are set to discover how much it takes to try and make a small business work. Jo knows
how hard it is but with creativity, sheer hard work, direction and, perhaps, a bit of luck,
there are possibilities out there