Leveraging Brand Equity For Developing Appropriate Brand Extension Strategies.

George, Simon (2008) Leveraging Brand Equity For Developing Appropriate Brand Extension Strategies. TAPMI, Manipal.

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Abstract

New product launches are one of the most key and anxiously awaited tasks for any company. As the market becomes more dynamic and competitive, there is added pressure on companies to come out with new products. Nevertheless, fear of failure prevents many companies from taking the plunge. Two reasons mainly prevented a large number of companies from not launching new products. One was because of the magnitude of marketing efforts required and the second was due to the huge costs needed for, new product launches. But some companies with a larger product/brand portfolio have found out that it can be a wise strategy to leverage on the power of some of its well known brands to launch new products. This came to be known as brand extension strategy. Brand extension is the process of extending into different a new product category in another product class using, the brand name of the company’s established brand. The challenges of this strategy were mainly two. The first one was to identify the most appropriate brand to extend and the second was to find out the product category it can extend to, where above brand had the best fit. This paper recommends a brand extension strategy based on a systematic and structured approach of brand and product assessment at several stages, through a few objective measurement tools including brand equity measurement. This paper is based on a consulting assignment given by Cholayil company .The company had 15 brands in its portfolio. The paper proposes a systematic and objective approach to brand extension in the form of the following stages. The first stage involved the selection of the parent brand for extension from the brand portfolio. This election was done on the basis of the brand equity measurement (using a combination of models by David Aker and Kevin Lane Keller) .In addition to the perceptions and attitude of the customers towards these brands, data on the performance of these brands in the market was also collected. The second stage was to elicit products from other product categories which had some fits with the Cuticura brand. An FGD exercise brought out 5 product categories namely Deodorants, Body lotion, bathing soap, Fairness cream and Cold cream.The third stage was to establish dimension fits of Cuticura with the other 5 product categories. This involved identification of key factors of associations of Cuticura brand. These key associations of the brands were mapped with the core associations of the 5 products identified earlier, through the computation of correlation coefficients. In addition 4 other dimensions (proposed by Keller) were used to measure the fits of Cuticura brand with each of the 5 product categories. Both the correlation coefficients and the 4 other dimension fits, revealed that the two best product candidates for extending Cuticura talcum powder brand are bathing soap and deodorants. The fourth stage was to select the best from the two. It was recommended that after the study that, the best product category to extend to was Deodorants. The fifth stage involved the brand strategy of transferring the positive associations of Cutucura talcum powder brand to Cuticura deodorant through appropriate positioning and marketing programmes.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Brand Equity; Brand Extension;
Subjects:	Marketing
Divisions:	Marketing Management
Depositing User:	Ms. Vanitha K
Date Deposited:	15 Nov 2018 05:34
Last Modified:	19 Nov 2018 10:49
URI:	http://tapmi.informaticsglobal.com/id/eprint/293

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