Branding continued
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Branding Continued…. Dr. Cara Peters BADM 672D. Brand Extensions. Take equity of the brand and use it in another context Advantages: Save money, instant recognition, more easily build market share Normal new brand introduction costs: $50 million - $1 billion for a large firm

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Branding continued

Branding Continued…

Dr. Cara Peters

BADM 672D


Brand extensions

Brand Extensions

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

  • Advantages:

    • Save money, instant recognition, more easily build market share

      • Normal new brand introduction costs: $50 million - $1 billion for a large firm

    • May rejuvenate old brand

      • General Mills example


Brand extensions1

Brand Extensions

  • Works well for brands with higher emotional connections

    • Built on personality, values, etc.

  • Keys to success

    • Compelling brand proposition in new category

    • Sufficient competence in new category

      • “Fit” of brand in new category


Brand extensions2

Brand Extensions

  • Risks:

    • Failure of new product may hurt brand

    • Lose focus of brand

    • Damage perceptions of brand

    • Cannibalization

  • Least risky: related product in same market

  • Most risky: unrelated product in new market

    • Honda= Cars vs. Jeep=Luggage


Ask yourself

Ask Yourself

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

  • What could you potentially make it stand for?

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

  • Are those segments attractive?

  • Could you have leading edge competence in those markets?


Co branding ingredient branding

Co-branding & Ingredient Branding

  • Co-branding

    A partnership between two brands: HPiPaQ

  • Ingredient branding

    Inclusion of one brand within the other: Intel


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