Brand Extension: Using an Established Brand Name to Introduce a New Product

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“A brand extension occurs when a firm uses an established brand name to introduce a new product” (Keller, 2008, pg 491).

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Pg. 514
How relevant the extension evidence is about the attribute or benefit for the parent brand- Relevance-
Any brand extension needs to enhance its parent brand. If there is no connection, or ‘relevance’ it potentially won’t provide feedback benefits to the parent brand.

* Völckner and Sattler (2006) found that fit between the parent brand and an extension product is the most important driver of brand extension success. * Further advantages of this include that a successful brand extension is that it may enhance the parent brand image by strengthening an existing brand association, improving the favourability of an existing brand association, adding a new brand association, or a combination of these.

* Core brand associations, are those attributes and benefits that come to characterize all the products in the brand line and, as a result, are those with which consumers often have the strongest associations. For example, Nike has expanded from running shoes to other athletic shoes, athletic clothing, and athletic equipment, strengthening its associations to “peak performance” and “sports” in the process (keller, 2008, pg 501)

In other words, “how much consumers see evidence on product performance or imagery in one category as predictive of product performance or imagery for the brand in other categories. Evidence will affect parent brand evaluations only if consumers feel that extension performance is indicative, in some way, of the parent brand” (Keller, 2008, pg 513).

* “The product development graveyards are littered with some unfortunate examples, from BIC underwear to Harley- Davidson perfume. Clearly, marketing teams are sometimes unaware of, or in turn a blind eye towards. The full set of brand associations in the minds of customers” (Pringe, 2008, pg 155). * “If a...
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