|Statement||by Niraj Dawar and Paul F. Anderson.|
|Series||Working papers / INSEAD -- no.93/17/MKT|
|Contributions||Anderson, Paul F.|
|The Physical Object|
|Number of Pages||38|
1. Measure Brand Equity One of the biggest concerns when implementing brand extensions is the risk of causing brand dilution, that is, when the new product category fails and presents a negative impact on the brand as a whole. Thus, the first step is to have a Brand Equity measurement in place in order to track possible future impacts. 2. -If a brand is synonymously used with a specific product, brand extension could damage the brand name itself 1st type of brand extension Similar product in a different form from the original parent product (Frozen snickers ice cream bar vs. normal snickers). Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off.. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). Niraj Dawar has written: 'Cultural universals in marketing' 'Determining the order and direction of multiple brand extensions' -- subject(s): Product management, Brand choice 'Impact of product.
brand equity, brand image, brand personality and brand extension. 2. Brand Extension. Brand extension is a marketing strategy in which new products are introduced in relation to a successful brand. Various experts have defined brand extensions differently. though, these definitions look quite similar. Kotler and Armstrong () defined brand. Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. Brand managers therefore are forced to opt for brand extension strategies in order to create product differentiation and to increase revenue streams. Sometimes, brand extensions become necessary to reign in some of the niche segments which may not be addressed by the parent brand and thus the brand extension helps gain incremental market share. A strong brand name is an invaluable asset; managers must know when to exploit it, when to protect it, and how to tell the difference between the two. Because using an established brand name substantially reduces new-product introduction risks, there is an almost irresistable pull to “extend” brand names to new products. Doing so can be enormously profitable, but it can be dangerous, too Author: David Aaker.
KFC is a global fast food brand that has become famous throughout the world for its Southern fried chicken coated in its secret recipe of eleven herbs and spices. Since the brand launched in the UK in the brand has had tremendous success and has gone on to open stores with an annual national turnover of £1 Size: 1MB. BRAND EXTENSIONS A Brand Extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3) When a new brand is combined with an existing brand (approach 3), the brand extension can also be called a sub-brand. An existing brand that gives birth to a brand extension is the parent brand. If the parent brand. Nonetheless, Brand Leadership offers a solid foundation based on the well thought through research of a man who can only but be described as one of the leading thinkers in the branding world. The book also provides a good strategic method, particularly if you are trying to develop a new brand/5(26). organization was associated with multiple new product development all of which was brand extension. Concurrently Lorraine Sunde and her Masters’ thesis supervisor Professor Rod Brodie were publishing a paper highlighting the lack of agreement amongst attempts at empirical generalisations of Brand Extension theory. Subsequently.