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Chapter12BrandExtensions1.pptx

Brand Extensions

Chapter 12

What is a brand extension?

L’Oréal has a remarkable number of brand extensions.

Advantages of Brand Extensions include:

Reduce risk perceived by customers

Increase the probability of gaining distribution and trial

Increase efficiency of promotional expenditures

Permit consumer variety-seeking

Enhance the parent brand image

Bring new customers into brand franchise

Revitalize the brand

Permit subsequent extensions

Ocean Spray’s Brand Extensions

A brand extension can revitalize a declining brand.

But a brand extension can fail and hurt the brand image.

Disadvantages of brand extensions include:

Can confuse or frustrate consumers

Can encounter retailer resistance

Can fail and hurt parent brand image

Can succeed but cannibalize sales of parent brand

Can dilute brand meaning

Six of these brand extensions were marketed at some point. Can you spot the four fakes?

Ben-Gay Aspirin: Pain Relief That Comes with a Warm Glow

Burberry Baby Stroller: For Discriminating Newborns

Smith & Wesson Mountain Bikes: Ride without Fear

Atlantic City Playing Cards: Talcum-Coated for Easy Shuffling

Pond’s Toothpaste: Reduces the Appearance of Fine Wines

Slim Jim Beef-Flavored Throat Lozenges: For Meat Lovers Who Like to Sing Karaoke

Frito-Lay Lemonade: A Tangy, Crunchy Thirst Quencher

Cosmo Yoghurt: Spoon It Up, Slim Down Those Thighs

Richard Simmons Sneakers: Shake Your Cute Little Booty to the Oldies

Madonna Condoms: For Men Who Are Packing

The Fakes are in red…