Choosing Brand Elements to Build Brand Equity
February 12, 2025
Sales Professionals play a pivotal role in generating revenues for the organization. They are the ones who are responsible for product promotion and making a particular brand popular amongst the end users. In simpler words, sales representatives are the true face of an organization. The individuals representing the sales and marketing vertical must be satisfied […]
Introducing a new product in the market requires meticulous planning and relevant ideas put together after several rounds of discussions and brainstorming sessions among employees associated with the organization. There are several factors which go a long way in deciding how and when a new product should be launched so that it is not only […]
Marketing is a subject that draws a lot of students who find it most interesting and challenging. No doubt marketing is a challenge. Students who study Philip Kotler will definitely become proficient with the basic foundations of marketing and concepts. However to be able to take up a marketing responsibility in an Organisation or to […]
The previous articles in this module discussed how product management differs from brand management and the way in which product management is carried out in IT companies. This article looks at the specific case of product management in Indian IT companies by referring to some well-known companies and their practices. The Indian IT sector is […]
What is a Signage? Any visual representation which gives information to the customers about a store, any office, building, street, park and so on is called a signage. Signage helps the customers to easily reach their desired destination or locate a building by simply following the instructions displayed on it. Role of Signage in Retail […]
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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