Brand Extension

Introduction

A brand name is generally associated with a single product. However, there can be exception too. A brand name may be extended to related or unrelated products. Brand extension occurs in the following cases.

1. When individual or family brand is extended to unrelated products, e.g. the extension of the Enfield brand name from motorcycle to television and gensets.
2. When individual brands are extended to create a family brand, e.g. the extension of the Pond’s brand name from the dream flower talc to the sandal talc.
3. When related products are added to an existing family brand, e.g. Amul’s addition of the chocolate line.

There are a number of brand extensions being attempted by companies. Often, a line extension involves a different flavor or ingredient, or a different form or application of a brand. Some example of line extensions are close-toothpaste in three colors (blue, green, red), Cinthol toilet soap in four variants (original, new, lime and colonge), Horlicks (beverage) in three versions (regular, junior and chocolate), Robin Blue fabric whitener in two forms (liquid and powder), and Cherry Blossom shoo polish in two forms (paste and liquid).

When a firm introduces a new product, it has three main choices as to how to brand it:

1. It can develop a new brand, individually chosen for new product.
2. It can apply, in some way, one of its existing brands.
3. It can use a combination of new brand with an existing brand.

A brand extension is when a firm uses an established brand name to introduce a new product, when a new brand is combined with an existing brand, the brand extension can also be called a sub-brand. An existing brand that gives birth to a brand extension is referred to as the parent brand. The parent brand is already associated with multiple products through brand extension, then it may also be called a family brand.

Brand extension is broadly classified into two general categories:

• Line Extension: The parent brand is use to brand a new product that targets a new market segment with the product category currently served by the parent brand. A line extension often involves a different flavor or ingredient variety, a different form or size, or a different application for the brand (e.g., Head & Shoulders dry scalp shampoo).
• Category extension: The parent brand is used to enter a different product category from that currently served by the parent brand (e.g., Swiss Army Watches).

Most new products are line extension – typically 80% to 90% in any one year. Moreover, many of the most successful new products, as rated by various sources, are extension (e.g., Microsoft Xbox videogame system, Apple I-pod digital music player, and BMW mini automobile). Nevertheless, many new products are introduced each year as new brands.

Brand extension can come in all forms. One well-known branding expert, Edward Tabular, identifying the following seven general strategies for establishing a category – or what he calls a franchise – extension:

1. 1. Introduce products that reflect the brand’s distinctive benefit, attribute, or feature.
2. 2. Introduce the same product in a different form.
3. 3. Introduce products that contain the brand’s distinctive taste, ingredient, or component.
4. 4. Introduce companion products for the brand.
5. 5. Introduce products relevant to the consumer franchise of the brand.
6. 6. Introduce product that capitalize on the firm’s perceived expertise.
7. Introduce product that capitalize on the distinctive image or prestige of the brand.