#ExpandCapacity: Building a Strong BRAND 3

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.       Brand Development – Branding Decisions
  Branding decisions finally include brand development. #ExpandCapacity

2.       For developing brands, a company has four choices: line extensions, brand extensions, multibrands or new brands. #ExpandCapacity

3.       Line extension refers to extending an existing brand name to new forms, sizes, colours, flavours of an existing product category

4.       This is a low-cost, low-risk way to introduce new products. #ExpandCapacity

5.       However, there are the risks that the brand name becomes overextended and loses its specific meaning. #ExpandCapacity

6.       This may confuse consumers. An example for line extension is... #ExpandCapacity

7.       when Coca-Cola introduces a new flavour, such as diet cola with vanilla, under the existing brand name. #ExpandCapacity

8.       Brand extension also assumes an existing brand name, but combines it with a new product category. #ExpandCapacity

9.       This gives the new product instant recognition, faster acceptance and can save substantial advertising costs for establishing a new brand

10.   the risk that the extension may confuse the image of the main brand should be kept in mind. #ExpandCapacity

11.   if the extension fails, it may harm consumer attitudes toward other products carrying the same brand name. #ExpandCapacity

12.   Kellog’s has extended its Special K healthy breakfast cereal brand into a line of biscuits, snacks and nutrition bars. #ExpandCapacity

13.   Multibrands means marketing many different brands in a given product category. P&G and Unilever are the best examples for this

14.   Multibranding offers a way to establish distinct features that appeal to different customer segments. #ExpandCapacity

15.   However, each brand might obtain only a very small market share and none may be very profitable. #ExpandCapacity

16.   New brands are needed when the power of existing brand names is waning. #ExpandCapacity

17.   a new brand name is appropriate when the company enters a new product category for which none of its current brand names are appropriate

18.   In order to build strong brands,BRAND POSITIONING,BRAND NAME,BRAND SPONSORSHIP and BRAND DEVELOPMENT have to be in line with each other