Choosing Brand Elements to Build Brand Equity
February 12, 2025
The past few decades has seen unprecedented growth of service industry. In fact we can today say that the service industry is at its maturity stage. The gamut of services that make up for the significant contribution towards the GDP of the economy are numerous ranging from financial services, health care, hospitality, travel, insurance, information […]
The retailer acts as a link between the customer and the marketer, who is responsible for selling the ultimate products and services to the customers. In the entire complicated process of marketing, retailer acts an intermediary in the complex marketing & distribution channel. Though manufacturers can directly sell their products and services to the end […]
After gathering the information from desk and field research the raw data must be compiled so that the taxonomic analysis can be performed and data can be broken up into respective parts and segments. This can be achieved in the following manner: Keeping on revisiting and focusing on the ultimate objective of the research and […]
Online retailing has now become a part of our everyday lives. Companies like Amazon have swooped in from nowhere and have suddenly grown into one of the largest companies in the world today. The online companies took the world by storm. Their growth has been sudden and astronomical. Hence, many big businesses did not get […]
Innovation is the name of the game as far as companies in the 21st century are concerned. To compete effectively in the marketplace of this decade, companies need to either innovate or perish. Hence, innovation is the latest buzzword among the corporates. The innovation cycle as applied to product management consists of three stages: The […]
For a given company, there can be variety of product and services under different brands.
Brand-product matrix is used to better understand current offering of the company. This matrix helps companies understand product line (product category) and brand portfolio (brands for different products).
Similarly, brand hierarchy concept helps companies understand association among offered brands.
Brand product matrix and brand hierarchy are essential tools for companies when they are looking for brand extension or launching new products. But they are factors which affect brand extension and naming of product.
Typically, any given company would fall in any of the following four categories in terms future expansion strategies:
Clearly companies have to tackle tactical and strategically brand extension and naming of new products almost at any stage of growth.
For a given brand extension, it can be in form, where companies decide to expand product category under current parent brand family. This sort of extension may be through adding new flavor, different size packing.
Another form of brand extension is category extension, here companies introduce new product category this may or may not be under the parent brand. Companies while introducing new brand has option either to create a new brand altogether or extend the current parent brand or combination of parent brand as well as new brand.
Although there is high rate of failure for introduction of new brands, companies do try to expand product category or introduce new product category at some point. Success of this has many advantages for the company.
Brand extensions also facilitates in different ways process of firming position of parent brand in mind of consumer.
It helps parent brand state its true positioning in the market. It helps cater to new customers there by creating exposure for parent brand in consumer mind. It helps rejuvenate the parent brand, meaning it increases brand awareness and brand image and lead way to further brand extension programs.
Brand extension also has share of disadvantages.
From the above it is clear that brand extension have advantages as well as disadvantages. But for any brand extension strategy to succeed companies need to comprehend current brand knowledge and also undertake market research to clearly understand consumer expectation before coming to brand extension decision.
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