Brand Extension: Building, Measuring, and Managing Brand Equity

Brand extension or brand stretching is a marketing strategy in which a company or firm marketing a product with a well-established image of the same brand name is used in different product category. Organizations use this strategy to increase and leverage brand value or equity. An example of a brand extension is of SONY which uses its brand name in every single electronic appliances. It increases awareness of the brand name and increases profitability from offerings in more than one product category. A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals of that brand. 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 among customers. Brand extension is one of the new product development and marketing strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity which it already have.

Negative Impact of brand Extension:

There can be significant benefits in brand stretching strategies, there can also be significant risks, resulting in a distort or severely damaged brand image of the company or firm. Poor choices for brand stretching may even dilute and deteriorate the core brand and damage the brand equity. Most of the study focuses on the consumer evaluation and positive impact on parent brand. In practical situations, the failures of brand extension are at higher rate than the successes of it. Some literature's show that negative impact may distort the brand image and value. In spite of the positive impact of brand stretching, negative correlation and wrong business communication strategy do harm to the parent brand family.

Types of Brand Extensions:

From the line extension to brand extension, however, there are many different way of extension such as "brand alliance", co-branding or “brand franchise extension”.Tauber (1988) suggests seven strategies to identify extension cases such as product with parent brand’s benefit, same product with different price or quality, etc. In his suggestion, it can be classified into two category 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 (sometimes with a competitor) who takes on the responsibility of manufacturer and sales of the new products, paying a royalty every time a product is sold.

Coke vs. Diet Coke:An best examples

Brand 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 tactic is undertaken due to the brand loyalty and brand awareness they enjoy as consumers are more likely to buy a new product that has a tried and trusted brand name on it as of Coke. 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.

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Brand Management : Is it the Right Marketing Career for You?

Brand management is the career track you hear about most often. It is the key function in the consumer products industry. Brand managers are often likened to big business owners because they assume responsibility for a brand or brand family. They are always focused on the big picture. It is their job to distill the brand's essence, map out their competitors in their brand's category, identify marketing opportunities, and be able to effectively communicate the unique benefits of that product or service. And convert the product into a brand is there goal.
Brand managers are also responsible for guiding the market research team by setting the agenda and criteria and also selecting the stimuli, such as product-benefit statement, pictures, product samples, and video clips. Once the research is complete it is the brand manager's job to analyze the data that's been collected then develop a marketing strategy.
This marketing strategy may call for a new ad campaign, development of new products, or drawing out a new vision for the brand. It is also then the brand manager's job to ensure that other functions such as promotions, market research, research and development, and manufacturing are orchestrated to implement the strategy that they have developed. They also do the Sales analysis & forecasting of future sales. Give the marketing inputs to the sales person during training programmes and also handles sales Promotion Meetings.
Is the Brand Management Career Track for You?
Careers in product and brand management tend to attract high potential, well motivated individuals who can accept broad responsibilities easily and with little supervision, communicate well with other people, are willing to do some traveling, and thrive on constant change. Starting salaries are good, with career and compensation advancement based on achievement.
Educational Eligibility requirement for You?
As we understand the roles and responsibility of a Brand managers, so are there eligibility requirements are very high.
Graduation: Any graduates mainly (B.pharm, Bsc, BE, MBBS) are more preferred.
Post Graduation: MBA / PGDBA (Marketing), MBA (Pharma), MBA (Biotech)
Experience: Minimum 6 to 1 yr in Sales of consumer Product.
Positions available in Brand Management:
Brand Executive / Product Executive (Entry Level)
Brand Manager / Product Manager
Group Product Manager
Senior Group Product Manager
Marketing Head