In: Economics
Perhaps the time comes when maturity is inevitable whatever new
augmentations are attempted. The brand managers still want to
extract the most value from their assets but cannot see much more
to be had in the existing market. Here their minds may turn to
brand extension.
As many as two out of three new product launches are examples of
brand extension. This is where the existing brand is used to
support the launch of a new product. The reasons are clear-new
product lunches are very risky, most fail, and using the ’halo’ of
an existing brand can help to reduce that risk. If the market is
also new, then the risk is even greater and the halo effect yet
more important. The problem is that if a brand extension fails, the
backlash will be felt by the original brand.
Brand extension comes in different forms. The simplest is the
launch of the existing product in a new format. Soap powder takes
on a liquid form under the same brand name, or Mars Bars are shrunk
into bite-size pieces and launched as Mars Little Ones. Some would
argue that this was really still brand augmentation, with the brand
chasing much the same market with much the same product – or does
the Mars Little Ones proposition target a new buyer in a new
circumstance? This is more than playing with words- augmentation is
relatively safe territory, dealing with what you know already;
genuine extension enters the higher risk zone.
Next up the ladder of extension is the launch of what we might call
companion products under the same name. Gillette razor blades will
add Gillette razors, and the Gillete shaving foam. Once each brand
extension is successfully established, the process for brand
augmentation will recommence, adding Gillette shaving gel to the
shaving foam range, and so on. The highest-risk brand extension is
when the brand leaves its own territory. Virgin, as we have seen,
is at this, reducing the risk through use of the brand halo effect,
and ensuring that it translates the existing brand values to the
new market.
Q1. Branding is a combined effort of the company which is projected to the consumer. Outline the strategies used in developing a product’s brand personality?
There are mainly 4 strategies used to develop a brand personality. These are outlined below-