A company has four choices when it comes to developing brands. Describe what they are. Describe the following:
- Line Extensions multiple varieties of a existing brand name
- Brand Extensions extension of a current brand into a modified
- Multibrands market of many different brands in a given category
- New Brands new product category
Branding influences an items success or failure in the market place since time immemorial. It is the complete pictorial representation of an item, the name, the symbols on the packaging and colors of the product that differentiates it from a similar product from a different company. It is commonly used to market a new product, broaden products offerings and to enter a new product category. We have different categories of branding that include: line extensions, brand extensions, etcetera.
The first is new product branding. This is simply creating a new name for a new product in a totally different category in the company. There are points to know before creating a brand. This is that a brand must be specific and unique to one’s product.
For an effective brand to be created we need to get an appropriate name that is easy to remember. It should be a maximum of three words. A catchy slogan also needs to be developed that expounds on the product why buy it, what to like about the brand and why is it better than the competition. The biggest challenge in new brand new product category is creating the right name, slogan and symbol for the product. Advertising and promotional budgets are high for this product so as to create acceptance of this product since market penetration is not easy. This makes it the most expensive way of introducing a brand or a product into the market.
The second is Multibrands which is also known as flanker branding. This is introduction of a brand in a product category which is already in existence in the company and recognized by consumers. It is introduced to compete with the competitors’ but it should not in any way affect the existing product since it targets a different category of consumer
This strategy is also called fighter branding and mostly assists in achieving a larger total market share than one product would manage. This is usually achieved when a company has the following characteristics: a premium product that has a higher price and better quality, lower quality product that the price is affordable to all. This easily attracts new customers from different cadres or rather market segments. It also assist a company to get more shelf space, it captures those customers who love changing brands, furthermore it assists in sustaining a company in a certain class a lower class product introduced without affecting the upper class product. It is cheaper than creating a new brand.
The third is brand extension which is also known as franchise extension or brand leveraging. This when a company uses an existing brand to support the entry of a related brand, for instance when a water dispenser company uses its name to introduce a kind of bottled water. They are in different categories but they are related.
It creates a sense of familiarity with the product in the sense that it carries the positivity of the existing product into a new product category. For example Bic pen was used to introduce Bic razors into the market. This is cheaper than introducing a new product category and also increases shelf space for the company.
Whereas the fourth is line extension, this is the use of an exixsting brand name to introduce a slightly different product. For instance coke soda introduced coke light or diet coke soda. This product is in the same product category though they have large differences it uses the name coke to be recognized, thus easily accepted . Mostly used to introduce falvors and package sizes etc. its advantages is expands company shelf space, offers variety, lower promotional costs and increased costs.
Works Cited
http://www.communicus.com/pdfs/Communicus_Line_extension_paper.pdf retrieved on 12th April 2013 at 2.30 PM
Kotler and Gary Armstrong Principles Of Marketing. 14th Ed. print
