ASSIGNMENT ON BUILDING SECONDARY KNOWLEDGE STRUCTURES

BRAND LEVERAGING
A brand leveraging strategy uses the power of an existing brand name to support a companys entry into a new, but related, product category. For example, the manufacturer of Mr. Coffee coffee makers used its brand name strength to launch Mr. Coffee brand coffee. While coffee machines and coffee beans are in different product categories, there is a strong enough correlation between the two items that the brand name has a powerful impact on consumers of

both categories. Brand leveraging communicates valuable product information to consumers about new products. Consumers enter retail outlets equipped with preexisting knowledge of a brands level of quality and consistently relate this knowledge to new products carrying the familiar brand. Generally, consumers maintain a consistent brand perception until disappointed creating a risky advantage for established brands. Why is Brand Leveraging Important? 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. Instant recognition of the brand is established, and consumers with a favorable brand opinion likely will try a new product they perceive to have a similar quality level and attributes as their original favorite. Additionally, because the products are in different categories, they will not compete for market share the crux of a successful branding strategy. For example, Bic is a strong brand name with years of experience in marketing low -cost disposable plastic products such as the Bic pen. Thus, Bic is positioned well to introduce products that capitalize on these same basic strengths products such as disposable razors and cigarette lighters .To avoid disappointing brand-loyal consumers, the greatest risk involved in brand leveraging, it is important to maintain a consistent level of quality within the brand across category lines. Likewise, it is as important to leverage a brand only into new categories that are related to the original product. Trying to sell too many diverse products will dilute the brand name and yield poor results. For example, the Frito Lay name is extended from potato chips into other types of snack foods and dips. However, an introduction of Frito Lay lemonade did not succeed because the fruity, sweet drink had little connection to other Frito Lay products. Other examples that did not work in the consumer market include Smuckers ketchup, BenGay aspirin, and Fruit of the Loom laundry detergent. However, M&M ice cream, Reeses peanut butter, and Minute Maid orange soda experienced success because the brands held direct and logical connections to their new categories. Additional advantages of brand leveraging include:

 More products mean greater shelf space for the brand and more opportunities to make a sale. The cost of introducing a brand-leveraged product is less than introducing an independent new product due to a much smaller investment in brand development and advertising designed to gain brand recognition A full line permits coordination of product offerings, such as bagels and cream cheese, potato chips and ranch dip, peanut butter and jelly, etc. A greater number of products increase efciency of manufacturing facilities and raw materials. Brand leveraging does present challenges. To avoid brand dilution, leveraging should be limited to entering only those categories that are directly related to the original product. Potential exists for damaging the reputation of the parent product if new products fail. Also, manufacturing and inventory costs may be higher as a result of product diversication.

SOURCES OF BRAND KNOWLEDGE

Company

Brand leveraging here happens through the branding strategies adopted by the company

A corporate brand may evoke associations of Common product attributes, benefits or attitudes People and relationships Programs and values Corporate credibility Brands and companies are often unavoidably linked to the category in which they compete

For example, when Headline Today wanted to bring its Initial Public Offer, it used its sub-brand AajTak in the advertisement and let the general public know that behind AajTak is Headline Today Corporation.

Country of origin or other Geographic areas

Many countries have become known for expertise in certain product categories or for conveying the particular type of image. Thus consumer from anywhere may prefer Watch from Switzerland, beer from England, Vodka from Russia, Software and Tea from India. The famous examples are Levis Jeans from United States, BMW from Germany and Nike athletic shoes from United States.

Co-branding
Co-branding is also known as brand alliance or brand bundling. It occurs when two or more existing brands are combined into a joint product are marketed into a same fashion. It can generate greater sales from the target market as well as open additional opportunities with new consumers and channels. It can reduce the cost of production introduction of two wellknown images in the market and also compliment the expertise of each other in Indian context; the best examples are Maruti-Suzuki, ICICI-Prudential Insurance Company.

Licensing/ franchisee

When expanding alone is difficult company may provide license to move fast in the market. Sometime, to avoid immediate risk of enter into the market, even to check market feasibility and to avoid the risk of being treated as an outsider; companies may prefer to enter through licensing, franchisee to make it sure the safe and fixed return while getting an opportunity to sell under its own brand name. for example, McDonald is the best example of providing franchise worldwide, while marketing it sure that interior is same and quality of food is maintained.

Celebrity Endorsement
Well-known and admired people to promote product is a widespread phenomenon which bring immediate attention to the brand and shapes the perception of the brand by virtue of the inferences. For example, recently Aishwarya Rai is endorsing Taj Mahal tea by appealing to public to vote for Taj Mahal in seven new wonders of the world by voting through sms, phone or even by logging onhttp://new7wonders.com

Sporting, Cultural or Other Event

It is very important to choose the appropriate event, design the optimal sponsorship program and measure the effects of sponsorship on brand equity. This sponsored event can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations and improving the brand strength of the existing associations. For example, Recently Sarara group and Indian Cricket are like compliment to each other. Program like Antakshari on Zee TV was so popular as Close-up Antakshari that it is difficult to recall as Sansui Antakshari.

Third-Party Sources
Awards won and reviews accolades the performance not just of the company but even confirms the trust of consumers. The third-party sources can be seen as a mark of quality and are perceived as credible. For example, various toothpaste brands are linked in India with Indian Dental Association, British Dental Association, etc