The philosophy of brand extension is not well understood and as a result, brand extension is often implemented incorrectly.
Brand extension is using the leverage of a well known brand name in one category to launch a new product in different category. The philosophy of brand extension is not well understood and as a result, brand extension is often implemented incorrectly. Companies have to find strategic opportunity to identifying and evaluating alternative extensions for a brand. How to use brand extension correctly?
Define actual and desired consumer knowledge about the brand
It is critical to fully understand the depth and breadth of awareness of the parent brand and the strength, favorability, and uniqueness of its associations. Moreover, before any extension decisions are contemplated, it is important that the desired knowledge structures have been fully articulated.
Identify possible extension candidates
Consumer factors when identifying potential brand extensions, marketers should consider parent brand association, especially as they related to the brand positioning and core benefits and product categories that might seem to fit with the brand image in the minds of consumers.
Evaluate the potential of the extension candidate
In forecasting the success of the proposed brand extension, it is necessary to access through judgment and research, the likely hood that the extension would realize the advantages and avoid the disadvantages of brand extension.
Design marketing program to launch extension
Too often extension are used as a shortcut means of introducing a new product, and insufficient attention is paid to developing a branding and marketing strategy that will maximize the equity of the brand extension as well as enhance the equity of the parent brand.
Evaluate extension success and effects of parent brand equity
The final step in evaluating brand extension opportunities involves assessing the extent to which an extension is able to achieve its own equity as well as contribute to the equity of the parent brand. A number of decisions have to be made concerning the introduction of a brand extension, and a number of factors will affect the brand’s success.In order to
In order to have better understanding about the implementation of brand extension, companies have adopted the five stages in evaluating brand extension. For brand extension to be successful there must be some logical association between the original product and the new one. A weak or nonexistent association can result in brand dilution. Even worse, if a brand is unsuccesful, it can harm the parent brand.