The brand identity and contract may be undermined if the extensions ignore the brand kernel e.g Jungle Lodges Cavery Fishing Camp. With introduction of Range Extensions the focus shifts to the base of the pyramid where there is more freedom. The highest degree of degeneration of the brand caused by market domination and the absence of brand differentiating communication.
[...] Benetton Line and Range Extensions Over time the brand seeks to widen its customer base by offering other products and services Line and Range Extensions are important as these Reinforces the brand by widening its market base An automatic way of gaining market share Delivers more shelf space Proves it is full of energy and sensitivity (attentive and caring character) by reaching many segments', specific needs e.g Diet Coke Time needed to launch is shorter than launching a new brand Line and Range Extensions The Challenge Manage two levels of Branding Mother Brand and Daughter Brands Seek balance between its own, and the shared identity (between coherence and freedom) Uncontrolled extensions weakens the range logic Expensive and complicates production, logistics, management Weakens range logic on the shelf - (with competition doing the same) Distributor gets more powerful Weakens the value of each variant hyper-segmentation, weaker positioning, resulting in marginal turnover It changes the manner in which consumers make a choice can reduce brand to a mere feature Managing Range Extensions Escaping the trap Ensure each product offers a worthwhile value that is different Allocate resources to strategic and high-margin products Find out the real profitability of each extension Encourage a policy where products are withdrawn Managing the Brand Contract The Brands Contract - binds, promises, and engages each side - company and clients The brand identity and contract may be undermined if the extensions ignore the brand kernel e.g Jungle Lodges Cavery Fishing Camp With introduction of Range Extensions the focus shifts to the base of the pyramid where there is more freedom Uncover and revert to the original identity that can be lost with range extensions Brand Revitalization ‘Return to the Future' The Factors of Decline Degradation of quality cutting corners, ‘alpha-risk threshold' approach of companies Refusing to follow a durable change e.g. [...]
[...] Life-style (consumer values, customs and behavior and symbols change) Technology (obsolescence and downgrading) Competition (imitates) Marketing Compulsion is Change Growth serving new markets Meeting the increasing and changing consumer demands Pre-empting competition Occupying more shelf space Solution - Line and Range extensions What Should Change The vectors of brand continuity and change are - Products demonstrate mission and image of brand Positioning changes to relate to the consumer's expectations, needs and desires (but not too often) innovation e.g Coca Cola new products Communication of the evolving brand offering Living Personality must constantly adapt to be relevant to its current customers The stylistic code is more permanent visual and audio symbols e.g Titan, than the The advertising message, slogans etc. [...]
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