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A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products. Brands can include a number of elements:.

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Brands can include a number of elements
A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products.

Brands can include a number of elements
Brands can include a number of elements:

  • Brand name – the word, group of words, letters, or numbers representing a brand that can be spoken. Ex: Mountain Dew, PT Cruiser, SnackWells

  • Also called a product brand

Brands can include a number of elements

  • Trade name – identifies the company or a division of a particular corporation – the legal name a company uses when it does business. Ex: Kellogg’s, Dell, Xerox

  • Also called a corporate brand.

Brands can include a number of elements

  • Brand mark – the part of the brand that is a symbol or brand name – it may include distinctive coloring or lettering. It usually is not spoken

Brands can include a number of elements

  • Trade character – a brand mark with human form or characteristics. Ex: Jolly Green Giant, Pillsbury Doughboy, Kellogg’s Tony the Tiger

Brands can include a number of elements

  • Trademark – a brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government

    • Trademarks are followed by a registered trademark symbol

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 brands.

  • Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories.

Brand extension1

  • An existing brand that gives rise to a brand extension is referred to as parent brand.

  • If the customers of the new business have values and aspirations matching those of the core business, and these values / aspirations are embodied in the brand, it is likely to be accepted by customers in the new business.

Brand extension2

  • There are many different ways of Brand extension such as "brand alliance", co-branding or “brand franchise extension”.

  • There could be two categories of extension; extension of product-related association and non-product related association.

  • Another form of brand extension, is a licensed brand extension. Where the brand-owner partners takes on the responsibility of manufacturer and sales of the new products, paying a royalty every time a product is sold.

Brand extension examples

  • 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.

  • A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, T – shirts, soccer balls, basketballs, and golf equipments.

Brand extension examples1
Brand Extension - EXAMPLES

  • RALPH LAUREN’S POLO Brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding fulfill a similar consumer function of comfort and hominess.

  • Similarly the case for FAB INDIA from home furnishings and clothing to FMCG, Soaps, Detergents, Food Products, etc

Brand extension examples2
Brand Extension - EXAMPLES

  • Another example is Virgin Group, which was initially a record label that has extended its brand successfully many times:

  • From transportation (aeroplanes, trains) to games stores, telecom, beverages and video/ music stores such VIRGIN MEGASTORES.

Brand extension3

  • Brand extension is one of the new product development strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity.

  • While there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand image.

Product extensions
Product Extensions

  • 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 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.

  • Majority of new products used brand extension to introduce new brands and to create sales. Launching a new product, is not only time consuming but also needs a big budget to create awareness and to promote a product's benefits.

Brand extension success stories
Brand Extension – SUCCESS STORIES

  • Instances where brand extension has been a success are-

  • Wipro which was originally into computers has extended into shampoo, powder, and soap.

  • Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

  • Mother Diary – no longer famous for Dairy Milk Only – but for diary processed items like Ice-Creams, Yogurt, etc


Brand extension4
Brand Extension

  • Studies indicate that dilution effect do occur when the extension across inconsistency of product category and brand beliefs.

  • Branding does not always follow a rational line. One mistake can damage all brand equity. A classic extension failure example would be Coca Cola launching “New Coke” in 1985.

  • Not only did Coca Cola not succeed in developing a new brand but sales of the original flavour also decreased.

Brand extension failure stories
Brand Extension- FAILURE STORIES

Instances where brand extension has been a failure are-

  • In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about.

  • Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its niche, there was little success. When it experimented with fizzy fruit drink “Oranjolt”, the brand bombed even before it could take off.

  • Oranjolt was a fruit drink in which carbonates were used as preservative. It didn’t work out because it was out of synchronization with retail practices.

Brand extension advantages
Brand Extension - ADVANTAGES

  • It makes acceptance of new product easy by reducing perceived risks

  • It increases brand image.

  • The likelihood of gaining distribution and trial increases.

  • The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced, due to economies of scale

  • Cost of developing new brand is saved.

  • Consumers can now seek for a variety.

  • There are packaging and labeling efficiencies.

Brand extension feedback benefits

  • The image of parent brand is enhanced.

  • It revives the brand and allows subsequent extension.

  • Brand meaning is clarified.

  • It increases market coverage as it brings new customers into brand franchise.

  • Customers associate original/core brand to new product, hence they also have quality associations.

Brand extension disadvantages
Brand Extension- DISADVANTAGES

  • Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far.

  • There is a risk that the new product may generate implications that damage the imageof the core/original brand.

  • There are chances of less awarenessand trial because the management may not provide enough investment for the introduction of new product.

  • If the brand extensions have no advantage over competitive brands in the new category, then it will fail.

Brand positioning
Brand Positioning

  • Brand positioning is one of the oldest marketing topics. Traditionally, firms have concentrated on the benefits that set them apart from the competition – their points of difference. However, two other aspects deserve attention: competitive frames of reference and points of parity.

  • The competitive frame of reference defines the associations that consumers use to evaluate points of parity and points of difference. The frame of reference often includes other brands in the same category, but could also include brands in other related categories.

  • Points of parity are the shared values between the target brand and its competitors. These values are the common denominators that define the category.

Brand range of associations
Brand – Range of Associations

  • This mental map shows the range of associations for Nike. Some associations are product specific while others are not. Brands typically have many associations, but only three to five are the primary drivers of brand equity.

  • Core associations for Nike include: innovative technology, high quality/stylish products, joy and celebration of sports, maximum performance, self-empowerment and inspiring, locally and regionally involved, and globally responsible.

  • When compared to Reebok, comfort and stylishness are points of parity while technology and empowerment are points of difference. Compared to Adidas, performance and quality are points of parity while technology and empowerment are points of difference.

Brand resonance
Brand Resonance

  • Brand resonance is characterized by strong connections between the consumer and the brand.

  • Brands with strong resonance benefit from increased customer loyalty and decreased vulnerability to competitive marketing actions.

  • The challenge for the brand is to ensure that the customer has the right experiences to create the right brand knowledge.

Brand resonance stages of progress
Brand Resonance – Stages of Progress

The first stage of brand development is identity. At this stage, consumers are just beginning to understand what the brand is.

Salience refers to how easily or often a consumer thinks of the brand, especially at the right place and right time.

The second stage is meaning.Here, consumers begin to understand points of difference and points of parity such as performance and reliability.

The third stage is response, which is where consumers judge the brand with their heads and hearts. Consumers judge factors such as credibility, expertise, and trustworthiness.

Brand resonance1
Brand Resonance

Feelings at this stage can be divided into two categories: experiential and enduring. Warmth, fun and excitement are experiential feelings. They are more immediate and short-lived than enduring feelings.

Enduring feelings, such as security, social approval, and self-respect, are private and potentially part of day-to-day life.

The final stage is resonance, or intense, active loyalty. This is where customers feel a connection or sense of community with the brand and they would miss it if it went away.

C0 branding

Co-branding refers to several different marketing arrangements:

  • Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy.

  • the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands.

  • Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer.

  • The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product

Co branding

The objective for this is to combine the strength of two brands, in order to increase the PREMIUM consumers are willing to pay, make the product or service more resistant to copying, or to combine the different perceived properties associated with these brands with a single product.

Thus co-branding could be considered to include sponsorships:

  • MERU CABS – Vs Earth Infrastructure

  • CWG & World CUP 2011 – CO Sponsors

  • Marlboro lends it name to Ferrari

  • FMCG Products Vs HUL


  • NGOs: Collaboration with Private Sector Banks

Types of co branding

  • There are many different sub-sections of co-branding.

  • Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once.

  • The forms of co-branding include: ingredient co-branding, same-company co-branding, joint venture co-branding, and multiple sponsor co-branding.

Types of co branding1

One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products.


  • Betty Crocker’s brownie mix includes Hershey’s chocolate syrup

  • Baskin Robbins Vanilla Ice Cream and Cadbury’s Hot Chocolate

  • Pillsbury Brownies with Nestle Chocolate

  • Dell Computers with Intel Processors

  • Kellogg Pop-tarts with Smucker’s fruit

Types of co branding2

Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously.


  • Kraft Lunchablesand Oscar Mayer meats

  • Heinz – Baked Beans and Tomato Sauce

  • EXPEDIA – Flights, Hotels, Vacations – can offer deals separately or as a composite solution

    Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience.


  • British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club


Brand extension5
Brand Extension

Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc.


  • Citibank/American Airlines/Visa credit card partnership