Brand Extensions: Beyond Risk & Benefit

BRAND EXTENSIONS:

Beyond Risk & Benefit

Presented on Science Communication Forum at Li Zhen Dao

About Me

The young protégé, Marketer & Business Scholar www.ekak-hardianto.com

BRAND EXTENSION

What is Brand Extensions?

Brand is a misunderstood term

Most companies confuse between high name awareness and patent registration with the real benefits of loyalty and advocacy that come from a strong brand

©2009

BRAND EXTENSION

What is Brand Extensions?

A nice visualization? A good marketing communication? A logo?

Traditional people mindset about brand……

©2009

BRAND EXTENSION

What is Brand Extensions?

Traditional people mindset about brand……

A brand is not just distinguishing name and/or symbol intended to identify a product or producer but also something about CHARACTER

©2009

BRAND EXTENSION

What is Brand Extensions?

What is Brand Extensions?

Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category

©2009

BRAND EXTENSION

What is Brand Extensions? Brand extension component should be?

It is a new product

It should use a well known brand

The brand should have leverage with customers of the new category

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BRAND EXTENSION

Type Of Brand Extensions Type of Brand Extensions?

1. Similar product in a different form from the original parent product.

2. Distinctive flavor/ingredient/component in the new item

3. Benefit/attribute/feature owned.

4. Expertise 5. Companion

products 6. Vertical extensions 7. Designer

image/status

©2009

BRAND EXTENSION

Risk & Benefit

Benefit

1. Brand extensions can be successful if the position of the parent brand is strong enough in the consumer’s perception

2. Enable a company to enter new categories at significantly lower cost

3. Create a positive synergistic effect with the efficiencies of umbrella branding and advertising

4. Reinforce the consumers’ perceptions of the parent brand name 5. Bring news to existing brands when there is otherwise nothing

new to say about them

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BRAND EXTENSION

Risk & Benefit

Risk

1. the high cost of requisite 2. require different promotional costs 3. confuse consumers if the slim difference 4. There can be real damage to the parent brand, if a brand

extension is so off target or lacks fit and or leverage 5. Lost of valuable quality

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BRAND EXTENSION

case

So, How about Ma Chung Brand?

1. is necessary use Ma Chung matter?(Mac or ”M”) in some of product or service line- (event/activities/community)

2. How the role of PR/marketer in communicating the parent brand and individual brand?

©2009

BRAND EXTENSION

©2009

BRAND EXTENSION

©2009

Universitas Ma Chung

Technopreneur Brainstorm

Ma Chung Technopreneur Days Ma Chung Open Source

N N

NNH

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Ma Chung Research Center for Photosynthetic Pigments

Ma Chung Research center for photosynthetic

BRAND EXTENSION

AND MORE

BRAND EXTENSION

What is Brand Extensions?

Type Of Brand Extensions

Risk & Benefit

case

Alternative suggestion

1. Starting gradually 2. Build the appropriate consumer perceptions of parent brand and

its extensions 3. Assessing the presence of brand extensions on parent brand 4. Continue to build both of parent brand and brand extension) 5. Build one gate campaign management system (if consider using

Ma Chung parent brand)

©2009

THANK YOU

BRAND EXTENSION

@2009