Muhammad ZubairZaid Iftikhar

Abubakar SarwarShahjahan Jahangir

Topic

Brand ExtensionOf

Unilever

Brand Extension

Brand extension involve using the name of existing brand to introduce the new

product category.

Brand extension is a popular Branding strategy to enter in the new product category.

Brand extension strategy is advantageous because it reduce the cost of new product introduction and enhanced the probability of new product.

Brand extensions are one of the most heavily-researched and influential areas in marketing.

Brand extension directly related with Parent Brand.

Brand Extension Process Major Brand Extension Strategy Decisions:

Product Brand Brand Equity

Brand Positioning

Brand Development

Brand Extension

Name Selection

Success/Failure of Extension

Sponsor-ship

Advertise-ment

Product Commodity offer for sale.

Non familiar goods or services.

Something that has been created by someone or some process.

The set of elements common to two or more sets

Brand Familiar product

Brand is the name, term, sign, symbol, design and combination of them or other characteristic that identify the product and distinguished it from other.

Brand could be tangible and intangible.

To maintain competitive advantages two thing are important.SustainChange

Product Brand

Brand vs Product Companies Make Products and Consumers Make Brands

Products Can Be Copied and Replaced but Brands Are Unique

Products Can Become Obsolete but Brands Can Be Timeless

Products Are Instantly Meaningful but Brands Become Meaningful over Time

Brand has different type of association as compare to the product.

Brand Equity

A measure of the brand’s ability to capture consumer preference

and loyalty.

The difference between the market value of a Product and the

claims held against it.

Brand PositioningThe act of designing the company’s offering and image in such a way that it occupies a distinctive place in the minds of customers.”

A brand can be positioned on the basis of:

Product attributesBenefitsBeliefs and values

Brand Development Strategies

LineExtension

Brand Extension

Multi-brands

New Brands

Product category

Existing New

Bra

nd N

ame

Existing

New

NewNew BrandsBrands

New brand name New product categoryExample:Unilever introduced a new product category for Laundry with a new brand name of Comfort.

Multi-brandsMulti-brands New brand name Existing product categoryExample:

Unilever has multi-brands in the same product category of shampoosSuch as Dove, Sunsilk, Lux etc.

Line ExtensionLine Extension Existing brand name Existing product category

Example:

Fair & Lovely Facewash has different range of facewash for different people. This strategy is called line extension.

Brand ExtensionBrand Extension Existing brand name New product categoryExample:

Knorr have extend their brand by adding a new product category of knorr rolls and wrap mix powder.

Brand Extension

Brand Extension also called 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.

A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals

In the 1990s, 81% of new products used brand extension to introduce new brands.

In the 2009s, 90% of new products used brand extension to introduce new brands.

Advantages Cost reduction in introduce new brand

Customer are familiar with the parent brand name.

Low risk strategy to introduce the new product

Probability of success are higher

Increase Profitability

Disadvantages Higher the risk to dilute the Parent Brand image

Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity

The failures of brand extension are at higher rate than the successes

Negative association and wrong communication strategy do harm to the parent brand even brand family.

Name Selection The brand name is a very important brand element, and may heavily influence the way a brand perform.

Brand Names are the key Brand Equity generators because they affect recall and recognition,

Selecting a brand name is crucial part of branding

Full name brand extension. Derived name brand extension.

For Example Fair&Lovely

BrandBrand SponsorshipSponsorship

Parent Brand adopt Sponsorship way to provide the Financial resources to make Brand Extension in best form.

2 Sponsorship Options:

National brand

Co-brand product

NationalNational BrandBrand

“A brand sold out under its own unique brand name.”

Example:(Sunsilk)

Co-brandingCo-branding “Using the established brand names of two different companies on the same

product.”

Example:Unilever and Rafhan co-branding

AdvertisementAdvertisement With the Brand Extension, parent company need to create the

awareness among the customers.

companies may apply different communication strategies to increase perceived fit and, consequently, consumer acceptance.

The best communication strategy is “Advertisement”.

AppealsAppeals There are two common appeals use in the Advertisement

Informational Advertisement Appeals

Transformational or emotional advertising appeals

InformationalInformational Informational advertising provides strictly information about the advertised product

and/or brand. This appeal shows the perceived fit between parent brand and new brand name.

Dens. N & Patrick De (2010). Attitudes toward the extension and parent brand in response to extension advertising: Journal of Business Research

TransformationalTransformational oror emotionalemotional Transformational appeals typically contain less information but picture positive sensorial,

social, or emotional aspects of one's experience with the focal item being promoted.

Success & Failure of Extension BrandSuccess & Failure of Extension Brand Success and Failure of Brand Extension base on the application of

all these strategies. If Parent company able to apply these in successful way then extension been successful and vice versa.

According to the survey 90% new product in the in the market are in the result of Brand Extension. More then 50% are fail due to the bad strategy application.

Lipton Yellow Label Tea

Lipton in Pakistan

Lipton Alps mint and Eucalyptus

Forest Fruit

Red Fruit

Caramel Tea

Ice Tea

Black Kiss

Peppermint

Herbal Tea

Green Tea Intense Mint

Tea & Honey

Infusion Chamomile

Blue fruits

Decaffeinated

Lemon & Ginger

Chamomile

Finest Earl Grey

Rooibos

English Breakfast

And Others

Lipton’s other extensions