A detailed look at brand management
- Executive summary
- Introduction to brands
- History of brands
- What is branding?
- Why is it important to develop a brand for a product or service?
- Conveys value
- Builds brand loyalty
- Builds pride
- Brand extensions
- Advantages of brand extension
- Facilitate new product acceptance
- Improves brand image
- Increase efficiency of promotional expenditures
- Reduce cost of introductory and follow-up marketing programs
- Disadvantages of brand extensions
- Can confuse or frustrate consumers
- Can encounter retailer resistance
- Can fail and hurt parent brand image
- Can succeed but cannibalize sales of parent brand
- Can succeed but hurt the image of the parent brand
- Can dilute brand meaning
- The good, bad and ugly extensions
- The good extensions
- The bad
- The ugly
- What's important to consumers?
- Brand extendibility
- Step 1: Determine key associations.
- Step 2: Develop proxies
- Step 3: Conduct research
- 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
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.
[...] Although these different brands were limited to a few specific products at one time, they have broadened their meaning through brand extensions to represent "complete oral care." Similarly, many specific-purpose cleaning products have broadened their meaning to become seen as multipurpose (e.g., Lysol, Comet). Enhance the Parent Brand Image According to the customer-based brand equity model, one desirable outcome of a successful brand extension is that it may enhance the parent brand image by strengthening an existing brand association, improving the favorability of an existing brand association, adding a new brand association, or a combination of these. [...]
[...] New Management is more than a mere re-engineering of Samsung but rather an entire revolution dedicated to making world-class products to ensure market leadership and build premium brand recognition to establish Samsung Electronics as flagship brand in the world, providing total customer satisfaction, and being a good corporate citizen. In retrospect, New Management was a decisive turning point for Samsung, the moment when the entire company was repositioned on the basis of "Quality first." During this period different extensions - from semiconductors to computer monitors, TFT-LCD screens to color picture tubes - leaped into the ranks of the top five products for global market share in their respective areas others achieved top market ranking in their areas. [...]
[...] Brand management is about finding a group of people you can identify with, spending time together, & becoming committed to each other. The more time you spend with your customers the better. This is sometimes referred to as share of mind Branding is about the totality of a customer's experience. A brand is about everything you do which impinges on the consciousness of the customer and, more importantly, it is about everything he thinks you do. Some experiences carry greater weight than others. [...]