In-Class Exercise on Brand Extensions: The Cheat Sheet

3 Branding Strategy options for introducing a new product:

1. New Brand: New Name; Opportunity to be a Corporate, Parent or Family Brand (Umbrella branding) Brand Extensions: 2. Adopt/Modify Existing Brand: From Corporate, Parent or Family Brand 3. Combination of New Brand and Existing Brand: Sub-brands 4. Are there any secondary source associations? Co-branding and Ingredient Branding can apply to any of the above

Brand Extension classification

Line extension: Extending the brand in the same product category Category extension: Extending the brand into a different product category

Extension Strategies
Same product in a different form. Products that contain the brands distinctive taste, ingredient, or component. Companion products for the brand. Products relevant to the customer franchise of the brand. Products that capitalize on the firms perceived expertise. Products that reflect the brands distinctive benefit, attribute, or feature. Products that capitalize on the distinctive image or prestige of the brand.

In-Class Exercise on Brand Extensions

Analyze your parent brand and extension for 25 minutes and answer: Branding Strategy used/rationale:

Brand Extension classification/rationale:

Extension Strategy(ies):

Copyright T. Wilbur 2013

Apply the 3 Factor Model of Extension Equity: Will the extension create its own equity?
(HINT: START WITH A MENTAL MAP FOR PARENT BRAND, EXTENSION) Creating POTENTIAL extension equity depends on 3 factors: 1. Salience: What associations from the Parent Brand are REPEATED in the extension/context? 2. Favorability: What associations are favorable? New associations AND/OR reinforced parent associations 3. Uniqueness: What are the extensions points of difference? Can be from parent or new associations

Apply the 4 Factor Model of Extension Feedback: Will the extension give equity back to the parent brand?
1. How compelling: Defined by 2nd level of the CBBE modelwhat meaning does the extension give back to parent brand? Imagery/Performance Blocks

2. How relevant: Defined by the 3rd level of the CBBE modelhow will the consumer reaction to the extension impact the parent brand? Judgment/Feeling Blocks

3. How consistent: How does the extension create fit with parent brand? Mantra, Mental Maps

4. How strong: To what extent will the extension impact/change perceptions of the parent brand? RATE: Weak, Moderate, Strong, etc. AND state rationale for rating.

What advantages does it maximize and what disadvantages are minimized?

Answer: Is this extension successful or not? WHY? (This interprets the overall meaning of the 3, 4 Factor Models and advantages/disadvantages of extensions overall)

Copyright T. Wilbur 2013