For example, brand equity can be borrowed by extending the brand name to a line of products in the same product category or even to other categories in some cases, especially when there is a perceptual connection between the products, such extensions are successful. Leveraging brand equity to introduce new products can provide instant positive brand equity to the new product and elevate the existing brand equity however, the brand extension route is not the best choice for every new product introduction. In this article (our finale), we complete our four-part series on brand equity, suggesting how a firm that has established equity in a brand can leverage that equity through branding strategies such as brand and line extensions, co-branding, and licensing. Brand extension a brand extension occurs when you leverage your brand equity to market a new business or product to a new customer market a prominent company example was gap launching gapkids .
Effective branding strategy allows companies to distinguish themselves from their competitors in the market in this module, we will learn how to build a strong brand, explore how brand equity affects profitability, and understand how strong brands can leverage their equity to create successful extensions. Fmcg sector in india leveraging brand extension market experts are of the view that not only do brand extensions leverage the equity of the parent brand but they . Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category brand managers use this as a strategy to increase and leverage brand equity.
6 vital steps for brand extension success measure brand equity one of the biggest concerns when implementing brand extensions is the risk of causing brand . But what would be course of brand building for brand extension here brand has to draw some brand elements and brand knowledge from already developed brand, which has already created impression in consumer’s mind, thereby leveraging secondary brand association to create brand equity. Brand extension or brand stretching is a marketing strategy in which a firm marketing a organizations use this strategy to increase and leverage brand equity . With this strategy, an extension wants to leverage the brand equity of the parent brand, in order to increase revenues for the business these extensions can be line or category, and this strategy is a great way to increase revenues for a business, provided the brand and its extension are cohesive.
Brand equity accounts for the difference in customer response that a brand name makes in essence, brand equity is a factor of a brand’s ability to keep and attract customers consequently, a brand can have negative brand equity or positive brand equity. Leveraging brand equity to attract human capital benefits of brand equity in consumer markets have been explicated, the potential for for this we turn to the brand extension literature. Brand managers use this as a strategy to increase and leverage brand equity as you may know, brand extension is a marketing strategy in which an organization that markets a product with a well-developed image uses the same brand name but in a different product category.
Brand leveraging is an important form of new product introduction because it provides consumers with a sense of familiarity by carrying positive brand characteristics and attitudes into a new product category. Brand management leveraging - learn brand management concepts in simple and easy steps starting from their overview and then diversity, equity, equity models, architecture, identity and positioning, promotion, extension, co-branding, performance, leveraging, valuation. Leveraging secondary brand knowledge to build brand equity 1 71 chapter 7:chapter 7: leveraging secondary brandleveraging secondary brand knowledge to build brand equityknowledge to build brand equity kevin lane kellerkevin lane keller tuck school of businesstuck school of business dartmouth collegedartmouth college. Adapting to succeed leveraging the brand equity of best sellers to succeed at the box office (1994) found that brand equity positively influences extension. Customer relationships - brand extensions represent a way to leverage a brand's assets and equity to market new products, increase sales and hopefully, profits.
Brand equity is a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service the concept is used to determine how valuable a brand is, based on the idea that firmly established and reputable brands are more . Brand extension:leveraging, leveraging, line extension in detail, positive side of line extension brand management business marketing business management. And it allows you to create extension opportunities, brand and line extensions on growing the brand by leveraging the equity and .
Brand extension strategy fuels brand growth by stretching an existing brand into new product categories, new customer markets, and/or new geographies brand extension | leveraging equity to drive profitable brand growth. Many brand extensions fail simply because the philosophy of brand extension is not well understood or implemented correctly bic’s extendable equity is disposability they had leverage when . Brand extensions are one of the most popular strategies for leveraging brand equity by launching new products under popular brand names, firms hope that consumers will respond more favorably to the new offering, due to their familiarity with the parent brand, positive feelings toward the parent brand, and positive attribute and non-attribute associations they have with the parent brand. Vertical extensions offer management the quickest way to leverage a core product’s equity vertical new effect of brand extensions on parent brand .