A brand is a name, term, design, or symbol
(or combination) that identifies a business or
organization and its products.
Brands can include a number of
elements:
 Brand name – the word, group of words, letters, or
numbers representing a brand that can be spoken.
Ex: Mountain Dew, PT Cruiser, SnackWells
 Also called a product brand
 Trade name – identifies the
company or a division of a particular
corporation – the legal name a
company uses when it does business.
Ex: Kellogg’s, Dell, Xerox
 Also called a corporate brand.
 Brand mark – the part of the
brand that is a symbol or brand
name – it may include distinctive
coloring or lettering. It usually is
not spoken
 Trade character – a brand mark
with human form or characteristics.
Ex: Jolly Green Giant, Pillsbury
Doughboy, Kellogg’s Tony the Tiger
 Trademark – a brand name, brand
mark, trade name, trade character, or
a combination of these that is given
legal protection by the federal
government
 Trademarks are followed by a registered
trademark symbol
Brand EXTENSION
 Brand extension or brand stretching is a marketing
strategy in which a firm marketing a product with a welldeveloped 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 brands.
 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.
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Brand EXTENSION
 An existing brand that gives rise to a brand extension is
referred to as parent brand.
 If the customers of the new business have values and
aspirations matching those of the core business, and
these values / aspirations are embodied in the brand, it is
likely to be accepted by customers in the new business.
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Brand EXTENSION
 There are many different ways of Brand extension such as
"brand alliance", co-branding
extension”.
or “brand franchise
 There could be two categories of extension; extension of
product-related association and non-product related
association.
 Another form of brand extension, is a licensed brand
extension. Where the brand-owner partners takes on the
responsibility of manufacturer and sales of the new
products, paying a royalty every time a product is sold.
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Brand EXTENSION - EXAMPLES
 An example of a brand extension is JELLO - GELATIN
creating Jello pudding pops. It increases awareness of
the brand name and increases profitability from offerings
in more than one product category.
 A renowned/successful brand helps an organization to
launch products in new categories more easily. For
instance, Nike’s brand core product is shoes. But it is
now extended to sunglasses, T – shirts, soccer balls,
basketballs, and golf equipments.
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Brand Extension - EXAMPLES
 RALPH LAUREN’S POLO Brand successfully extended
from clothing to home furnishings such as bedding and
towels. Both clothing and bedding fulfill a similar
consumer function of comfort and hominess.
 Similarly the case for FAB INDIA from home furnishings
and clothing to FMCG, Soaps, Detergents, Food Products,
etc
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Brand Extension - EXAMPLES
 Another example is Virgin Group, which was initially a
record label that has extended its brand successfully
many times:
 From transportation (aeroplanes, trains) to games
stores, telecom, beverages and video/ music stores
such VIRGIN MEGASTORES.
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Brand EXTENSION
 Brand extension is one of the new product development
strategies which can reduce financial risk by using the
parent brand name to enhance consumers' perception
due to the core brand equity.
 While there can be significant benefits in brand extension
strategies, there can also be significant risks, resulting
in a diluted or severely damaged brand image.
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Product Extensions
 Product extensions are versions of the same parent product that
serve a segment of the target market and increase the variety of an
offering.
 An example of a product extension is COKE vs. Diet Coke in same
product category of Soft Drinks.
 This means the market is catered for as they are receiving a product
from a brand they trust and Coca Cola is catered for as they can
increase their product portfolio and they have a larger hold over the
market in which they are performing in.

 Majority of new products used brand extension to introduce new
brands and to create sales. Launching a new product, is not only
time consuming but also needs a big budget to create
awareness and to promote a product's benefits.
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Brand Extension – SUCCESS STORIES
 Instances where brand extension has been a success are Wipro which was originally into computers has extended into
shampoo, powder, and soap.
 Mars is no longer a famous bar only, but an ice-cream,
chocolate drink and a slab of chocolate.
 Mother Diary – no longer famous for Dairy Milk Only – but
for diary processed items like Ice-Creams, Yogurt, etc
BRITANNIA, TATA GROUP, ITC GROUP, UNILEVER GROUP
– BRAND EXTENSION FOR ENTIRE PRODUCT
PORTFOLIO
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Brand Extension
 Studies indicate that dilution effect do occur when the
extension across inconsistency of product category and
brand beliefs.
 Branding does not always follow a rational line. One
mistake can damage all brand equity. A classic extension
failure example would be Coca Cola launching “New
Coke” in 1985.
 Not only did Coca Cola not succeed in developing a new
brand but sales of the original flavour also decreased.
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Brand Extension- FAILURE STORIES
Instances where brand extension has been a failure are In case of new Coke, Coca Cola has forgotten what the core
brand was meant to stand for. It thought that taste was the
only factor that consumer cared about.
 Rasna Ltd. - Is among the famous soft drink companies in
India. But when it tried to move away from its niche, there was
little success. When it experimented with fizzy fruit drink
“Oranjolt”, the brand bombed even before it could take off.
 Oranjolt was a fruit drink in which carbonates were used as
preservative. It didn’t work out because it was out of
synchronization with retail practices.
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Brand Extension - ADVANTAGES
 It makes acceptance of new product easy by reducing
perceived risks
 It increases brand image.
 The likelihood of gaining distribution and trial increases.
 The efficiency of promotional expenditure increases.
Advertising, selling and promotional costs are reduced,
due to economies of scale
 Cost of developing new brand is saved.
 Consumers can now seek for a variety.
 There are packaging and labeling efficiencies.
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Brand Extension – FEEDBACK BENEFITS
 The image of parent brand is enhanced.
 It revives the brand and allows subsequent extension.
 Brand meaning is clarified.
 It increases market coverage as it brings new customers into
brand franchise.
 Customers associate original/core brand to new product,
hence they also have quality associations.
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Brand Extension- DISADVANTAGES
 Brand extension in unrelated markets may lead to loss of
reliability if a brand name is extended too far.
 There is a risk that the new product may generate
implications that damage the image of the core/original
brand.
 There are chances of less awareness and trial because
the management may not provide enough investment for
the introduction of new product.
 If
the brand extensions have no advantage over
competitive brands in the new category, then it will fail.
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Brand Positioning
 Brand positioning is one of the oldest marketing topics.
Traditionally, firms have concentrated on the benefits that set them
apart from the competition – their points of difference. However,
two other aspects deserve attention: competitive frames of reference
and points of parity.
 The competitive frame of reference defines the associations that
consumers use to evaluate points of parity and points of difference.
The frame of reference often includes other brands in the same
category, but could also include brands in other related categories.
 Points of parity are the shared values between the target brand and
its competitors. These values are the common denominators that
define the category.
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Brand Positioning – Associations
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Brand – Range of Associations
 This mental map shows the range of associations for Nike. Some
associations are product specific while others are not. Brands typically
have many associations, but only three to five are the primary drivers of
brand equity.
 Core associations for Nike include: innovative technology, high
quality/stylish products, joy and celebration of sports, maximum
performance, self-empowerment and inspiring, locally and regionally
involved, and globally responsible.
 When compared to Reebok, comfort and stylishness are points of parity
while technology and empowerment are points of difference. Compared
to Adidas, performance and quality are points of parity while technology
and empowerment are points of difference.
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Brand Resonance
 Brand
resonance is characterized by strong
connections
between the consumer and the
brand.
 Brands with strong resonance benefit from increased
customer loyalty and decreased vulnerability to
competitive marketing actions.
 The challenge for the brand is to ensure that the
customer has the right experiences to create the
right brand knowledge.
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Brand Resonance- Complete Flow Chart
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Brand Resonance – Stages of Progress
The first stage of brand development is identity. At this stage,
consumers are just beginning to understand what the brand is.
Salience refers to how easily or often a consumer thinks of the
brand, especially at the right place and right time.
The second stage is meaning. Here, consumers begin to
understand points of difference and points of parity such as
performance and reliability.
The third stage is response, which is where consumers judge the
brand with their heads and hearts. Consumers judge factors such
as credibility, expertise, and trustworthiness.
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Brand Resonance
Feelings at this stage can be divided into two categories:
experiential and enduring. Warmth, fun and excitement are
experiential feelings. They are more immediate and short-lived
than enduring feelings.
Enduring feelings, such as security, social approval, and selfrespect, are private and potentially part of day-to-day life.
The final stage is resonance, or intense, active loyalty. This is
where customers feel a connection or sense of community with
the brand and they would miss it if it went away.
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C0 - BRANDING
Co-branding refers to several different marketing arrangements:
 Co-branding, also called brand partnership, is when two companies
form an alliance to work together, creating marketing synergy.
 the term 'co-branding' is relatively new to the business vocabulary and
is used to encompass a wide range of marketing activity involving the
use of two (and sometimes more) brands.
 Co-branding is an arrangement that associates a single product or
service with more than one brand name, or otherwise associates a
product with someone other than the principal producer.
 The typical co-branding agreement involves two or more companies
acting in cooperation to associate any of various logos, color
schemes, or brand identifiers to a specific product
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CO- BRANDING
The objective for this is to combine the strength of two brands, in
order to increase the PREMIUM consumers are willing to pay,
make the product or service more resistant to copying, or to
combine the different perceived properties associated with these
brands with a single product.
Thus co-branding could be considered to include sponsorships:






MERU CABS – Vs Earth Infrastructure
CWG & World CUP 2011 – CO Sponsors
Marlboro lends it name to Ferrari
FMCG Products Vs HUL
JET AIRWAYS AND CITIBANK – CROSS PROMOTIONS
NGOs: Collaboration with Private Sector Banks
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TYPES OF CO-BRANDING
 There are many different sub-sections of co-branding.
 Companies can work with other companies to combine
resources and leverage individual core competencies, or
they can use current resources within one company to
promote multiple products at once.
 The forms of co-branding include: ingredient co-
branding, same-company co-branding, joint venture
co-branding, and multiple sponsor co-branding.
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TYPES OF CO-BRANDING
One form of co-branding is ingredient co-branding. This
involves creating brand equity for materials, components or
parts that are contained within other products.
Examples:
 Betty Crocker’s brownie mix includes Hershey’s chocolate
syrup
 Baskin Robbins Vanilla Ice Cream and Cadbury’s Hot
Chocolate
 Pillsbury Brownies with Nestle Chocolate
 Dell Computers with Intel Processors
 Kellogg Pop-tarts with Smucker’s fruit
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TYPES OF CO-BRANDING
Another form of co-branding is same-company co-branding. This is when a
company with more than one product promotes their own brands together
simultaneously.
Examples
 Kraft Lunchables and Oscar Mayer meats
 Heinz – Baked Beans and Tomato Sauce
 EXPEDIA – Flights, Hotels, Vacations – can offer deals separately or as a
composite solution
Joint venture co-branding is another form of co-branding defined as two or
more companies going for a strategic alliance to present a product to the target
audience.
Examples:
 British Airways and Citibank formed a partnership offering a credit card
where the card owner will automatically become a member of the British
Airways Executive club
 PRIVATIZATION OF INSURANCE SECTOR
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Brand Extension
Finally, there is multiple sponsor co-branding. This form
of co-branding involves two or more companies working
together to form a strategic alliance in technology,
promotions, sales, etc.
Example:
 Citibank/American Airlines/Visa credit card partnership
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