• When marketers combine a new brand with an existing brand, the brand extension can also be called a sub-brand, such as Hershey Kisses candy, Adobe Acrobat software, Toyota Camry automobiles, and American Express Blue cards. • The existing brand that gives birth to a brand extension or sub-brand is the parent brand . • If the parent brand is already associated with multiple products through brand extensions, it can also be called a master brand or family brand. CHP: 9&12&13&20-49
Devising a Branding Strategy • Brand extensions fall into two general categories: – In a line extension , the parent brand covers a new product within a product category it currently serves, such as with new flavors, forms, colors, ingredients, and package sizes. • Dannon has introduced several types of Dannon yogurt line extensions through the years—Fruit on the Bottom, All Natural Flavors, Dan-o-nino, and Fruit Blends. – In a category extension , marketers use the parent brand to enter a different product category, such as Swiss Army watches. • Honda has used its company name to cover such different products as automobiles, motorcycles, snowblowers, lawn mowers, marine engines, and snowmobiles. • This allows the firm to advertise that it can fit “six Hondas in a two-car garage.” CHP: 9&12&13&20-50
Devising a Branding Strategy • A brand line consists of all products—original as well as line and category extensions—sold under a particular brand. • A brand mix (or brand assortment) is the set of all brand lines that a particular seller makes. • Many companies are introducing branded variants , which are specific brand lines supplied to specific retailers or distribution channels. • They result from the pressure retailers put on manufacturers to provide distinctive offerings. – A camera company may supply its low end cameras to mass merchandisers while limiting its higher-priced items to specialty camera shops. – Valentino may design and supply different lines of suits and jackets to different department stores. CHP: 9&12&13&20-51
Devising a Branding Strategy • A licensed product is one whose brand name has been licensed to other manufacturers that actually make the product. • Corporations have seized on licensing to push their company names and images across a wide range of products—from bedding to shoes—making licensing a multibilliondollar business. – Jeep’s licensing program, which now has 600 products and 150 licensees, includes everything from strollers (built for a father’s longer arms) to apparel (with Teflon in the denim)—as long they fit the brand’s positioning of “Life without Limits.” – Through 400-plus dedicated Jeep shop-in-shops and 80 Jeep freestanding stores around the world, licensing revenue now exceeds $550 million in retail sales. New areas of emphasis include outdoor and travel gear, juvenile products, and sporting goods.
- Spring '16