Combined brands create broader consumer appeal greater brand equity Co branding

Combined brands create broader consumer appeal

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Combined brands create broader consumer appeal & greater brand equity Co-branding allows company to expand its existing brand into category it might otherwise have difficulty entering alone Brand DevelopmentCompany has four options when it comes to developing brands oCan create line extensions or brand extensionsoPursue multibrand strategy oOr create entirely new brandsLine ExtensionsLine extensions: occur when company extends existing brand names to newforms, colours, sizes, ingredients, or flavours of existing product category oEx: Honey Nut Cheerios & Multigrain Cheerios are extensions of Cheerios product line Company might use line extensions as low-cost, low-risk way to introduce new productsLine extensions involve risksoOverextended brand name might lose specific meaningoSales of extension may come at expense of other items in line Line extension works best when it takes sales away from competing brands Brand Extensions
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Brand extensions: extend a current brand name to new or modified products in new category Brand extension gives new product instant recognition & faster acceptance Saves high advertising costs usually required to build new brand name Extension may confuse image of main brand If brand extension fails, may harm consumer attitudes toward other products carrying same brand name Multibrands Multibranding: brand development strategy in which same manufacturer products many different brands in given product category Major drawback of multibranding is that each brand might obtain only smallmarket shareoCompany may end up spreading its resources over many brands instead of building few brands to highly profitable levelNew Brands Sometimes a company that has long-established name & has been in business for many years decides to adopt new strategy- to brand itself and its productsoEx: Gildan Activewear Inc., bought spot during Super BowlEstablished company creates new brand when it develops new product or product lineOngoing Brand Management One of most important marketing management roles is that of brand manageroResponsible for, and to manage, brandBrand managers need to continually audit brands’ strengths & weaknesses, & ask questions such as:oDoes our brand excel at delivering benefits that consumers truly value?oIs the brand properly positioned? oDo all of our consumer touchpoints support brand’s positioning?
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Brand manager makes decisions about which brands need more support, which brands need to be dropped, & which brands should be rebranded or repositioned because of changing customer preferences or new competitors Brand manager carefully manages marketing communications & advertising that communicates brand’s attributes & positioning to market oBrands must be maintained, not just by advertising but by overall brand experience, points of purchase, word of mouth, websites, & increasingly, social media Brand images & logos must be consistent & exact to be recognizable Brand CommunicationsBrand communications focuses on communicating brand positioning, or image, rather than on product features
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  • Spring '15
  • Brand, brand manager,  Brand

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