Xaviers Institute of Business

Management Studies

Subject Title: Brand Management

Ans 2 (A) Introduction:

In today’s increasingly competitive market, it is no longer enough to

understand customers for afirm to succeed. Firms must pay close attention to
their competition. They need to constantlycompare their products, prices,
channels and promotional efforts with their close competitors, to identify
areas of competitive advantage and disadvantage.

Firms must be forward looking and identify both their current and potential
competitors, gather information, and operate a market information system to
monitor competitor’s moves and market trends. Ignoring or underestimating
the threat posed by potential competitors and focusing only on current
competitors is often referred to as “Competitor Myopia”. This term was
coined by Theodore Levitt to describe situations in which firms fail to
recognize the full scope of their businesses. Competitor Myopia can drive
firms out of business!

Competitor Analysis Defined

Competitor analysis provides both an offensive and a defensive strategic
context for identifying opportunities and threats. The offensive strategy
context allows firms to more quickly exploit opportunities and capitalize on
strengths. Conversely, the defensive strategy context allows them to more
effectively counter the threat posed by rival firms seeking to exploit the
firm’s own weaknesses.

Through competitor analysis, firms identify who their key competitors are,
develop a profile for each of them, identify their objectives and strategies,
assess their strengths and weaknesses,

gauge the threat they pose, and anticipate their reaction to competitive
moves. Firms that develop systematic and advanced competitor profiling
have a significant competitive advantage.

. Identifying Current and Potential Competitors

To identify their current and potential competitors, firms have to use both an
industry approach as well as a market approach. The industry approach will
yield insights on the structure of the industry and the products offered by all
market participants. The market approach on the other hand, focuses on the
customer need and the firms attempting to satisfy those needs, which will
provide the firm with a wider view of current and potential competitors.

Industry-Based Analysis

An “industry” is defined as a group of firms whose products and services are

close substitutes of each other. Industries are primarily classified according
to the number of sellers involved and the degree of product differentiation.
Other factors characterizing an industry’s structure are: entry/exit barriers,
cost structure, degree of vertical integration and extent of globalization.
Based on number of sellers and product differentiation, industries are
commonly classified as a: monopoly, oligopoly, differentiated oligopoly,
monopolistic competition, or pure competition.Each category is described
below.

Monopoly exists when only one firm supplies a given product/service in a

certain country or area. A common example is the distribution of electrical
power to residential and commercial customers. Given that customers have
no alternatives, an unregulated monopoly seeking to maximize profits has a
demonstrable incentive to charge a higher price, do little or no advertising
and offer minimal service. A regulated monopoly, on the other hand, is
required to charge lower prices and provide more services in the public
interest. Monopolists might be willing to make some investment in service
and technology in a situation where partial substitutes for their products or
services are available or when there exists imminent competition. Electric
power generation and distribution are good examples of this behavior, with
recent developments in alternative energy sources and technological
improvements in electric power use.

Oligopoly consists of a few firms producing basically the same commodity,

such as Mobil, Shell and Sunoco, in the fuel industry. It is difficult for any
single company to sell fuel products above the going price unless it can
differentiate its product line in some way. Differentiated oligopoly refers to
an industry in which a few firms produce partially differentiated products,
such as Sony, Canon and Nikon in the digital camera industry.

Differentiation is based on specific product attributes such as quality, special

features, styling or services. Typically, competitors will seek to be the leader
firm for a certain attribute, attract customers who value that particular
attribute, and charge a premium for it.

Monopolistic competition refers to a situation where several competing firms

in an industry are able to differentiate their offer in whole or in part. Such is
the case of supermarket companies like Wegmans, Tops and Price Chopper
in the supermarket industry in Upstate NY. In this context, competitors
typically target those market segments where they can better meet the
customer’s needs and thereby command a price premium.

Market-based Analysis

From a market perspective, rather than looking at companies making the

same product as its only competitors, a firm looks for its competitors
among those companies that satisfy the same customer need. To avoid
falling into the Marketing Myopia trap, however, and in order to include all
actual and potential competitors, this need has to be defined as broadly as
possible.

For example, in the coffee business, a company like Nestle envisions as its
direct competitors other companies that sell coffee such as Maxwell House
and Taster’s Choice but should also consider its indirect competitors. These
would include any manufacturer that provides coffee makers that compete
with its Nespresso coffee makers such as Keurig and Mister Coffee.

The range of current and potential competitors is broad. On the basis of the
degree of product substitution, for example, companies can face brand
competition, industry competition, form competition and generic
competition.

• Brand Competition: the firm considers other firms offering a similar

product/service to the same customers at similar prices as its competitors.
Example: Coca Cola would see Pepsi Cola as its main competitor

• Industry Competition: the firm uses a broader approach and sees as its
competitors all firms making the same product or class of products.
Example: Coca Cola would see all other soda manufacturers as its
competitors

• Product Competition: the firm uses an even broader approach and sees
its competitors as firms manufacturing products that supply the same
service. Example: Coca Cola would see all other carbonated beverages
manufacturers as its competitors

• Generic Competition: the firm could use a still broader approach and see
its competitors as firms that compete for the same consumer dollars.
Example: Coca Cola would see all other beverages suppliers as its
competitors.

(B) Strategic Planning and the Market Attractiveness Framework

After you’ve determined which products or services make money and which
ones take money, evaluate which ones to invest in by looking at how
attractive the market is.

A widely used tool for conducting a portfolio analysis is the Market

Attractiveness Framework, which provides a structure that works with your
products and services as listed in the previous section. The framework looks
at your portfolio based on the strengths of each product or service and its
market attractiveness.

The example in the figure provides a good picture of where a company

should invest to yield the biggest growth in the upper-right-hand part of the
matrix. Use the Market Attractiveness Framework to determine your
product portfolio in relation to market attractiveness and business
strengths.

Factors that affect market attractiveness

Although any assessment of market attractiveness is necessarily subjective,

just use your knowledge and best judgment. The following key factors may
also help determine attractiveness:

Market size

Market growth

Pricing trends

Intensity of the competition

Overall risk in the industry

Opportunity to differentiate products and services

The more attractive the item, the higher up you place it on the vertical axis
of the framework. The less attractive it is, the lower you plot it.

Factors that affect business strength

A key business strength is product or service profitability. The more

profitable a business is, the stronger its product or service is. But
profitability isn’t everything. Consider these other factors as you plot your
products and services on the framework:

Product or service uniqueness

Brand recognition

Market share growth or decline

Customer loyalty

Relative cost position (cost structure compared with competitors)

Production capacity

Distribution strength

Record of innovations

Determine the business strength of each product or service. The stronger it

is, the further to the left you place it on the horizontal axis. The weaker it is,
the further to the right you plot it.

After looking at business strength and market attractiveness, you can put
together your own framework similar to the example and arrange every
primary product or service somewhere in the three areas.

Ans 4 (A) Brand

A brand is a name, term, design, symbol or any other feature that identifies
one seller's good or service as distinct from those of other sellers.[2][3][4]
Brands are used in business, marketing, and advertising. Name brands are
sometimes distinguished from generic or store brands.

The practice of branding is thought to have begun with the ancient

Egyptians, who were known to have engaged in livestock branding as early
as 2,700 BCE.[5] Branding was used to differentiate one person's cattle from
another's by means of a distinctive symbol burned into the animal's skin
with a hot branding iron. If a person stole any of the cattle, anyone else who
saw the symbol could deduce the actual owner. However, the term has
been extended to mean a strategic personality for a product or company, so
that "brand" now suggests the values and promises that a consumer may
perceive and buy into. Over time, the practice of branding objects extended
to a broader range of packaging and goods offered for sale including oil,
wine, cosmetics and fish sauce. Branding in terms of painting a cow with
symbols or colours at flea markets was considered to be one of the oldest
forms of the practice.

3 Roles Your Brand Can Play in Your Consumers’ Life Story

If they a made a movie about your consumer, what role would your brand
play? Hero? Trusted sidekick? Mentor? Villain? Would your brand even have
a speaking part? Or would it be an extra? You know, “Man in crowd #3
played by your brand”.

We all have life stories that we create and tell ourselves to give meaning to
our life experiences. We use these stories to construct our sense of self.

Psychologists call this Narrative Identity.In short, Narrative Identity is the life
story we tell ourselves to give our lives a sense of coherence and purpose.
We are all creators of our own myths — myths that give meaning to who we
are in the world. Every day, we strive to weave together our experiences
and actions into a life story that makes sense in some way.

The Roles Brands Play

The most meaningful brands play important roles in the construction of our
Narrative Identity. We use them to smooth over the inconsistencies and
contradictions in our stories. We write them into our personal narratives to
help us become the characters we want to become in the stories of our
lives.

Just like a movie, our stories consist of characters, props and settings. And
we incorporate brands into our stories in one of these three ways.

Characters: Brands can be characters, playing the role of supporting actors

in our narratives.

Props: They can be props that we use to move our personal plotlines along.

Settings: They can be settings, stages or backdrops against which we act out
the stories that shape our identities.

Characters

In marketing research, we often ask consumers to “personify” brands, that

is describe them as if they are people. Usually, consumers find this easy to
do. This is because we intuitively think of brands as characters in our life
stories.

Over the years, I’ve gotten into the habit of sticking a Clif ® Bar into my
pocket when I ski. I’m not a back country skier by any stretch. There’s little
chance that I’m going to ski anywhere far from a mid-mountain restaurant.

But that Clif Bar is always in my pocket. Why? It’s because the Clif Bar is a
character in my story. It represents my backcountry skiing partner. He is
rugged, adventurous, skilled and serious about being in the mountains. I’d
love to ski with someone like that. And with my Clif Bar, I can.

Props

Brands also can be props that we use to move our personal plotlines along.
The best brand-props are transformative in some way. They allow us to
access a different part of ourselves and play a slightly different role in our
stories.

In the movies, the kinds of props I’m talking about are like Harry Potter’s
wand, Catness’s bow and Luke’s lightsaber. But for us everyday folks, brands
are our transformative tools.

One of my brand props is my Gibson Les Paul guita

(B) Keller's Brand Equity Model

Many factors influence the strength of a particular product or brand. If you

understand these factors, you can think about how to launch a new product
effectively, or work out how to turn a struggling brand into a successful one.
In this article, we'll look at Keller's Brand Equity model. This tool highlights
four steps that you can follow to build and manage a brand that customers
will support

Overview

Keller's Brand Equity Model is also known as the Customer-Based Brand

Equity (CBBE) Model. Kevin Lane Keller, a marketing professor at the Tuck
School of Business at Dartmouth College, developed the model and
published it in his widely used textbook, "Strategic Brand Management."

The concept behind the Brand Equity Model is simple: in order to build a
strong brand, you must shape how customers think and feel about your
product. You have to build the right type of experiences around your brand,
so that customers have specific, positive thoughts, feelings, beliefs,
opinions, and perceptions about it.

When you have strong brand equity, your customers will buy more from
you, they'll recommend you to other people, they're more loyal, and you're
less likely to lose them to competitors.

The model, seen in figure 1, illustrates the four steps that you need to
follow to build strong brand equity.

Ans 6(A) Fast Food Restaurant Business Plan

Strategy and Implementation Summary

At first, we will open one outlet inside the New Paragon Shopping Centre.
This will become our "market testing area," and as we go further, Fresin
Fries is planning to open another in nearby shopping malls. In attracting
customers to try our fries, we will provide a see-through kitchen, so that
people will see how we are committed to freshness in our products.

The kitchen will also let out an aroma of our freshly fried fries into the
surroundings area, so that people will come and try our products.

Competitive Edge
·0 Our unique dipping sauces blend local taste and international into
one fusion recipe for the signature sauce.

·1 Enthusiastic and friendly staff

·2 Supporting merchandise items that support company's brand

building.

·3 Our fries are made of 100% fresh potatoes, unlike the frozen fries
used by competitors.

·4 Innovative packaging will position us at the same level with foreign

fast food franchises.

Marketing Strategy

Our strategy is based on serving our markets well. We will start our first
outlet as a "market tester" that could become a model of the expanding
number of outlets in the future. Concentration will be on maintaining
quality and establishing a strong identity in the local market.

A combination of local media and local store marketing programs will be

utilized at each location. Local store marketing is most effective, followed by
print ad. As soon as a concentration of stores is established in a market,
then broader media will be explored. We believe, however, that the best
form of advertising is still "buzz." By providing a fun and energetic
environment, with unbeatable quality at an acceptable price in a clean and
friendly outlet, we will be the talk of the town. Therefore, the execution of
our concept is the most critical element of our plan. We will actively build
our brand, through the selling of supporting materials, such as
merchandise, promotional items and other marketing gimmicks similar to
those of other fast food franchises.
Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that S$4.00 is the

average consumer spending for a snack or light lunch in Singapore.
Leveraging the volume of fries, Italian Soda, and signature style sauces to be
sold, we are serving the majority of Singaporeans.

Brand Challenges

Fresin Fries must establish a distinct brand to stand out from the other
Western-style fast food competitors.

Our logo is distinct as fresh, energetic and playful with color elements that
are eye catching.

Product names are geared toward the target market (teens), with items
such as "Frenzy Fresin" and "Uber Fresin" which are fun and easy to
remember.

Marketing Programs

We will deploy three different marketing tactics to increase customer

awareness of Fresin Fries. Our most important tactic will be "word-of-
mouth" and in-store marketing. This will be by far the cheapest and most
effective of our marketing programs because of the high traffic in targeted
shopping locations.

The second tactic will be local store marketing. These will be low-budget
plans that will provide community support and awareness of our facility.
The last marketing effort will be utilizing local media. Although, this will be
the most costly, this tactic will be used sparingly as a supplement where
necessary.

In-Store Marketing

In-store brochures containing our concept and philosophy.

Wall posters.

Design concept.

In-store viewing of making fries process from cutting to frying.

Standing signage inside malls’ lobby/aisle.

Outdoor signage (if possible).

Grand opening promotion.

Party catering.

Merchandising items.

Local Store Marketing

Brochures.

Free occasional t-shirts at local stores events.

Local Media

Direct mail piece – containing brochures sent to surrounding addresses.

Web page – containing company philosophy, history and news.

Local magazines that target our core customers, such as Free! Magazine.

Newspaper campaign – placing several large ads throughout the month to

explain our concept to the local area.

(B) Integrated Marketing Communication (IMC) Definition

IMC: Making an Impact with Marketing Communication

Having a great product available to your customers at a great price does

absolutely nothing for you if your customers don’t know about it. That’s
where promotion enters the picture: it does the job of connecting with your
target audiences and communicating what you can offer them.
In today’s marketing environment, promotion involves integrated marketing
communication (IMC). In a nutshell, IMC involves bringing together a
variety of different communication tools to deliver a common message and
make a desired impact on customers’ perceptions and behavior. As an
experienced consumer in the English-speaking world, you have almost
certainly been the target of IMC activities. (Practically every time you “like”
a TV show, article, or a meme on Facebook, you are participating in an IMC
effort!)

What Is Marketing Communication?

Defining marketing communication is tricky because, in a real sense,

everything an organization does has communication potential. The price
placed on a product communicates something very specific about the
product. A company that chooses to distribute its products strictly through
discount stores sends a distinct message to the market. Marketing
communication refers to activities deliberately focused on promoting an
offering among target audiences. The following definition helps to clarify
this term:

Marketing communication includes all the messages, media, and activities

used by an organization to communicate with the market and help
persuade target audiences to accept its messages and take action
accordingly.

Integrated marketing communication is the the process of coordinating all

this activity across different communication methods. Note that a central
theme of this definition is persuasion: persuading people to believe
something, to desire something, and/or to do something. Effective
marketing communication is goal directed, and it is aligned with an
organization’s marketing strategy. It aims to deliver a particular message to
a specific audience with a targeted purpose of altering perceptions and/or
behavior. Integrated marketing communication (IMC) makes this marketing
activity more efficient and effective because it relies on multiple
communication methods and customer touch points to deliver a consistent
message in more ways and in more compelling ways.

The Promotion Mix: Marketing Communication Methods

The promotion mix refers to how marketers combine a range of marketing

communication methods to execute their marketing activities. Different
methods of marketing communication have distinct advantages and
complexities, and it requires skill and experience to deploy them effectively.
Not surprisingly, marketing communication methods evolve over time as
new communication tools and capabilities become available to marketers
and the people they target.

ANS 7 (A) Brand Equity Management System

A brand equity measurement system is a set of research procedures that is

designed to provide timely, accurate, and actionable information to
marketers so that they can make the best possible tactical decisions in the
short run and strategic decisions in the long-run.

Marketers have various tools at their disposal to build a strong consumer

based brand equity. Through this tool, they have developed many
strategically important marketing communication programs. It is important
for survival of brand to understand how effective these programs have
been. If these programs have been able to induce a positive image and
increased brand knowledge among consumer then, it can be concluded that
strategy employed is successful. A deliberate effort has to be carried out to
measure success of marketing communication programs. This deliberate
effort should be in direction of effective and efficient measurement system
and also ways to manage these systems.

There are two ways forward in designing measurement system.

·5 One such measurement system relies on indirect method, where in

emotional level changes in consumer are sorted and recorded.

·6 Other system rather relies on direct measurement method where in

consumer response towards brand in terms of sales etc are measured
 and analyzed.

A system design to effectively measure source and outcome of branding

strategies there by providing a set of information, which can be delivered to
concern decision makers to act on, is called a brand equity measurement
system.

A brand equity management system is a set of organizational processes

designed to improve the understanding and use of the brand equity
concept within a firm. —.Three major steps help implement a brand equity
management system:

a)Creating brand equity charters,

b)Assembling brand equity reports,

c)Defining brand equity responsibilities.

Creating brand equity charters

The first step in establishing a brand equity management system is to

formalize the company view of brand equity into a document, the brand
equity charter, that provides relevant guidelines to marketing managers
within the company as well as key marketing partners outside the company
(e.g., ad agency personnel).

Assembling brand equity reports

Building a strong brand with significant equity provides a host of benefits

for firms. Understanding the sources and outcomes of brand equity
provides managers with information how and where brands add value. This
article reviews measures of both sources and outcomes of brand equity and
discusses a model of value creation, the brand value chain, as a holistic,
integrated approach to understanding how to capture the value created by
brands. The chapter also closes with issues in developing a brand equity
measurement system.
Defining brand equity responsibilities.

Brand equity is the financial value of a brand which provides capital/value

to products and services. Brand equity is related to future returns that
customers generate to the product or service. Developed brand assets in
the past, enable the brand to leverage her strength and should deliver
future value to the brand.

(B) Measuring Sources of Brand Equity

For any marketers, it is of supreme importance to understand a consumer

mind and also current level of brand knowledge among consumers because
this understanding lays foundation for formulation of marketing
communication strategies. Hypothetically, marketers should be able to
construct such mind print; but as this knowledge resides in consumer mind,
task become difficult. Marketers should be able to measure how much
marketing programs have succeeded in changing customer buying habits.
The solution is to develop techniques, which can convert emotional data
into qualitative and quantitative data for analysis. A particular attention is
required to design measurement system for source of brand equity.

One of the primary measurement system is capturing the response of

customer in a basic questionnaire format, where in, they are asked to
express feeling with regards to particular feature of brand and overall
experience in using a service. Another qualitative research technique looks
to capture consumer behavior in understanding her purchase decision. Here
question are asked, to understand how the consumer came to purchase
decision, what factors they consider, is there a particular time of the year do
they make this purchase, etc.

Marketers’, profile brand association by asking open end questions, like

what first comes to your mind when the brand name is mentioned. Here
response from consumer can be a good indicator of individual emotional
connection with the brand. Important points to be considered in deploying
this free association technique is question design, that is they should start
from overall brand image and then moving on to questions with precise
reference. Another consequential point to remember here is related with
coding of information, as questions are moving from general to very exact.

A drawback using open ended information gathering process is that there

could be instance where a consumer may not speak their mind and not
disclose a true feeling associated with the purchase decision, for example,
they bought brand to get them social status, but they may want to portray
as a casual purchase. Furthermore, unfamiliarity with the person could as
well prevent consumer from speaking her mind. To counter this problem
projective technique is employed where in a situation are shown to
consumer, and they are required to fill in details as per their liking.
However, this technique is also not foolproof. Another projective technique
tries to compare brands with characters or any un-related object or a
person and once done, marketers would try and analyze the response.

Ans(A) Brand-Product Matrix

To characterize the product and branding strategy of a firm, one useful tool
is the brand-product matrix, a graphical representation of all the brands and
products sold by the firm. In the brand-product matrix all products offered
under different brands are represented by columns. This helps marketers
understand the current brand line and explore further opportunity in
expanding the product line. In the brand-product matrix all current existing
brand are represented in form of rows referred to as brand portfolio. The
brand portfolio analysis is essential to design and develop new marketing
strategies to target a given product category.

Brand-product matrix helps in showcasing different brands in any given

product category. In that respect brand hierarchy is graphical representation
of company’s products and its brands. Hierarchical structure starts with
corporate brand and then showcases different product category and below
brands. This sort of presentation helps devise marketing strategy at many
levels and forms.
The rows of the brand-product matrix represent brand-product
relationships and capture the brand extension strategy of the firm in terms
of the number and nature of products sold under the firm’s brands. A brand
line consists of all products—original as well as line and category extensions
—sold under a particular brand. Thus, a brand line would be one row of the
matrix. A potential new product extension for a brand must be judged by
how effectively it leverages existing brand equity from the parent brand to
the new product, as well as how effectively the extension, in turn,
contributes to the equity of the parent brand. In other words, what is the
level of awareness likely to be and what are the expected strength,
favorability. and uniqueness of brand associations of the particular
extension product? At the same time, how does the introduction of the
brand extension affect the prevailing levels of awareness the strength,
favorability, and uniqueness of brand associations or overall responses
(judgments and feelings) toward the parent brand as a whole?

The columns of the brand-product matrix, on the other hand, represent

product-brand relationships and capture the brand portfolio strategy in
terms of the number and nature of brands to be marketed in each
category. The brand portfolio is the set of all brands and brand lines that a
particular firm offers for sale to buyers in a particular category. Thus, a
brand portfolio would be one particular column of the matrix. Different
brands may be designed and marketed to appeal to different market
segments. A brand portfolio must be judged on its ability to collectively
maximize brand equity. Any one brand in the portfolio should not harm or
decrease the equity of other brands in the portfolio. In other words, the
optimal brand portfolio is one in which each brand maximizes equity in
combination with all other brands in the portfolio.

(B)Brand Extension

What Is Brand Extension?

Brand extension is the use of an established brand name for a new product
or new product category. It's sometimes known as brand stretching.
How Brand Extension Works

A brand extension leverages the reputation and popularity of a well-known

product to launch a new product. To be successful, there must be a logical
association between the original product and the new item. A weak or
nonexistent association can result in the opposite effect, brand dilution.
This can even harm the parent brand.

Brand extension fails when the new product is unrelated to the original, or
even creates a negative association, such as Colgate Lasagna.

Successful brand extensions allow companies to diversify their offerings,

increase market share, and boost profits. The existing brand serves as an
effective and inexpensive marketing tool for the new product.

Unsuccessful brand extensions are a mismatch and seem peculiar at a

glance. Why would Arizona, the iced tea brand, bring out a line of nachos
and cheese dip? Or consider a historic blunder in brand extension: Zippo
perfume. Yes, it was a perfume bottle in the shape of a cigarette lighter,
presumably for women who wanted to pretend they were lighting
themselves on fire.

Examples of Brand Extension

Brand extension can be as obvious as offering the original product in a new

form. For example, the Boston Market restaurant chain has launched a line
of frozen dinners under its own name, offering similar fare.

Another form of brand extension combines two well-known products.

Breyer's ice cream with Oreo cookie chunks is a matchup that relies on
consumers' loyalty to either or both original brands.

Brand extension also may be applied to a different product category.

Google's core business is a search engine, but it has attached its name to
new products such as Google Wallet, the tap-to-pay app.

6 Vital Steps for Brand Extension Success

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. Measure the potential risks

Run a scenario analysis to identify the positive or negative effects on the

business and brand equity. The goal is to implement a brand extension
whose risk of failure does not exceed any marketing efficiencies.

3. Leverage from business core competency

The new product should leverage all the skills and know-how from the
current business and marketing operations in order to gain a competitive
advantage in the new category. By identifying the business key
competencies, the brand will be able to gain efficiencies and create market
differentiation.

4. Invest in Marketing Research

In the eagerness to grow the business, brands forget about making sure the
new category has market potential, that there are clear opportunities or
unmet customer needs. When identifying key opportunities, make sure to
understand prospect and current customers and estimate their acceptance
for potential brand acceptance. Use marketing research also to test the
possible new brand extensions.

5. Make the brand extension a logical fit

The new product must be a logical fit to the brand, compatible, expected
and follow the current brand story. The link between the new product and
the parent brand should be easily tracked. The biggest brand extension
pitfalls fall into this category.
6. Create a Brand Extension Strategy

After making sure the story follows a smooth path between both
categories, make sure you develop a brand management plan and a
compelling go-to-market strategy that will connect with your audience
across multiple touchpoints on the Customer BuyWay.