Brand Extensions: A Seminar

BRAND EXTENSIONS
A SEMINAR
BY
ARUN KUMAR
MBA(Pharm.) -1st Sem
NIPER, MOHALI
FLOW OF PRESENTATION
Brand extension
Definitions
Classification
Pharmaceutical Line & Category Extension
Advantages of extension
Disadvantages of brand extension
Drivers Of Brand Extension Success
Conclusion
Wednesday, December 08, 2021
BRAND EXTENSION
 When a firm uses an established brand to
introduce a new product it is called a brand
extension.
 When a new brand is combined with an existing

brand, the brand extension can also be called a
SUB-BRAND.
3
PARENT BRAND
 An existing brand that gives birth to a brand
extension, is called as the parent brand
 If parent brand is already associated with

multiple products through brand extension,
then it may also be called a family brand.
4
MAGGI
A WELL
KNOWN
FAMILY
BRAND
5
DABUR
6
DABUR –PHARMACEUTICAL BRAND EXT..
7
CADBURY
A well
known
BRAND
and its
extensions
8
RELATED DEFINITIONS
 Product Brand : Assigning an exclusive name
to a single product to assure individual
positioning (P&G’s Ariel, Tide,…)
 Umbrella Brand :When a company introduce
different products with same company name
then it is called umbrella brand
ex..colgate active salt
colgate strong teeth
colgate max fresh
colgate tooth brush
9
CONTD…
Repositioning :-
Existing products that are targeted to new markets
or market segments.
10
CLASSIFICATION
BRAND
EXTENSION
LINE EXTENSION CATEGORY EXTEN
11
LINE EXTENSION
The PARENT BRAND is used to Brand a New

product that targets a new market segment within
a product category currently served by parent
brand, such as through
new flavors, forms, added ingredients,
concentration, and package sizes.
12
 Line extensions refers to new sizes, styles,

or related products
 Coca-Cola line extensions
12-13
LINE EXTENSION….CONTD
 This term is similar in pharmaceuticals and FMCG

products
 Original brand and the later reformulation of it into
new dosage forms.
 This tactic sometimes allows pricing flexibility but
more often improves the competitive dynamics a
number of years after the original launch
14
PHARMACEUTICAL LINE EXTENSION

 Examples …
NEUCOBAL FORT
(METHCOBALAMINE 1500 MCG)
With Vit.B 6,ALA 100mg,folic acid
NEUCOBAL PLUS
(METHCOBALAMINE 500 MCG)
With Vit.B 6,ALA 100mg,folic acid
NEUCOBAL
(METHYLCOBALMINE 500 MCG)
NEUCOBAL G NEUCOBAL OD
(METHCOBALAMINE 500 MCG) (METHYLCOBALMINE
Gabapantin 300mg 1500MCG)
15
PHARMACEUTICAL LINE EXTENSION
Coscopin Plus Noscapine = 15mg

CPM = 4mg
Coscopin Linctus Noscapine = 7.5mg
CPM = 2mg
Coscopin Paed Noscapine = 7.5mg
CPM = no CPM
Coscopin BR Ambroxol= 15mg
Wednesday, December 08,
Guaphenesin=50mg 16
2021
CATEGORY EXTENSION
 When the parent brand is used to enter in a different
product category from the currently served by the
parent brand.
 In pharma Sector very limited number of examples exist,
where a single molecular entity (product) is allowed to be
marketed under two names in different unrelated indications
 Example :-
Bupropion hydrochloride is marketed by GSK as
Wellbutrin for depression and as Zyban for smoking
cessation
17
CATEGORY EXTENSION
 SCHERING PLOUGH has build
CLARITIN into a formidable brand that its
name is shared into several products including
* Eye drops,
* Anti-itching cream.
* Reduced irritation tissue products
* Even hair conditioners.
18
1. What is the difference between a line

extension and a brand extension?
A: A line extension is the practice of using a
current brand name to enter a new market
segment in its product class. A brand
extension is the practice of using a current
brand name to enter a completely
different product class.
19
WHY ?? BRAND
WHY BRAND EXTENSION
EXTENSION
20
 It is assumed that Brand that are already

known and recognized require lower new
product introduction expenses, such as ...
Advertising ,Trade Deals, or price promotions
(Collins-Dodd & Louviere 1999)
 Nevertheless, the success of brand extensions

is uncertain. Failure rate of brand extensions in
many FMCG product categories are
approximately 80%.
(Ernst & Young and ACNielsen 1999; Marketing 2003)
21
 Innovations are required to respond to the

profound change in customer expectations
 The cost of establishing a new brand name in
international markets is over $100 million
 Due to factors such as high advertising cost
increasing competition for shelf space , etc. It is
found that only 2 out of 10 new launches succeed
22
 To reduce the risk of failure-8 out of 10 new

products launches are brand extensions
 To exploit the equity of the core brand
23
A SUCCESSFUL BRAND EXTENSION WILL ADDRESS GENUINE

CONSUMER NEED AND SHOULD BE DEVELOPED FROM THE
CONSUMER DEMAND SIDE, NOT THE SUPPLY SIDE
Developments
Such as new technology
Must be used to fulfilled
Consumer needs rather than
Simply trying to sell a
new product into MARKET
CONSUMER
CONSUMER 24
WHAT A COMPANY GET FROM EXTENSION
Companies can make relatively

small investment in new products
with high profit margin
Bring new users but should not
disenfranchise the existing ones
SI TTIIV
V EE
O
PPO S I N
T AATT I
IOO N
E C T
XPPEC
EEX 25
ADVANTAGES OF EXTENSIONS
 Enhance the parent brand image

 Improve strength, favorability, and uniqueness of brand
associations
 Improve perceptions of company credibility
 Convey broader brand meaning to consumers
 Clarify core benefit proposition and business definition of the
company
 Bring new customers into the franchise and increase
market coverage
26
DISADVANTAGES
 Brand equity may be diluted

 Extension may take necessary funds
from the parent brand
 Resources required are huge and only
available to handful of companies
27
DISADVANTAGES
 There are increasing chances
of dispensing mistake e.g.
 Panadol is associated as a
paracetamol brand, but
adding aspirin components
and changing the brand name
to a similar sounding brand
would be potentially difficult
to recognize by the patient
28
DISADVANTAGES
 Many patients, who where
for instance aware that they
are aspirin allergic, would
not spontaneously, check
the constituents for such a
well known paracetamol
based brand
29
DRIVERS OF BRAND EXTENSION SUCCESS

 Overview of conceptual framework
Parent
Parentbrand
brandcharacteristics
characteristics
••Quality
Quality(strength)
••History
(strength)of
ofPB
PB B.E
B.E
Historyof
ofprevious
previousBrand
Brandextension
extension
••P.B
P.BExperience
Experience Success
Success
B.E’s
B.E’sMarketing
MarketingContext
Context
••Marketing
Marketingsupport
support
••Retailer
Retaileracceptance
acceptance
Relationship
Relationshipb/w b/wthe
theP.B
P.B&&the
theB.E
B.E
••Linkage
Linkageofofutility
utilityof
ofthe
theP.B
P.Btotoproduct
product
attributes
attributesof
ofthe
theoriginal
originalproduct
productcategory
category
30
CONCLUSIONS
 Brand extension is necessary for brand

growth strategy
 Requires proper market analysis
THANK YOU

Brand Extensions: A Seminar

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BRAND EXTENSIONS

 When a new brand is combined with an existing

 If parent brand is already associated with

DABUR –PHARMACEUTICAL BRAND EXT..

LINE EXTENSION CATEGORY EXTEN

The PARENT BRAND is used to Brand a New

 Line extensions refers to new sizes, styles,

 This term is similar in pharmaceuticals and FMCG

PHARMACEUTICAL LINE EXTENSION

Coscopin Plus Noscapine = 15mg

1. What is the difference between a line

 It is assumed that Brand that are already

 Nevertheless, the success of brand extensions

 Innovations are required to respond to the

 To reduce the risk of failure-8 out of 10 new

A SUCCESSFUL BRAND EXTENSION WILL ADDRESS GENUINE

WHAT A COMPANY GET FROM EXTENSION

Companies can make relatively

 Enhance the parent brand image

 Brand equity may be diluted

DRIVERS OF BRAND EXTENSION SUCCESS

 Brand extension is necessary for brand

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