Brand Extension

BRAND EXTENSION Brand extensions can endanger brand versus Brand extensions are an important brand growth strategy

Group 1 : Amirul Faiz Abd. Majid Ameeruz Kamal Tengku Mohd. Faizal Azman Suzilawati Normazleza

Brand

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An identity labeled to a product Created to foster long term chained connections between company and customers.

Brand Extension

A part of brand management to diversify and leveraging the existing brand by entering into new product category by new product development.

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Using the corporate name combine with individual product name Called the sub branding policy The company name legitimizes and the product name individualizes the new product.

Why is brand extension important to Nokia?  hone existing and build new competitive advantages for continued leadership in the mobile communications market amid increased competition from rivals  regain market share

How does Nokia increase its competitiveness in the market?

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broadening its product portfolio – 40 new devices to choose from. Variety in Nokia's offering will be enriched in 2005 when approximately two-thirds of Nokia's mobile device launches are targeted to have cameras and more than half are expected to be clamshells, slides and other non-mono block models.

How does Nokia increase its competitiveness in the market?

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to get the most compelling products to market at the right time meeting customer needs in mobile devices and mobile infrastructure – support software customizations. to better capture potential upside in high-demand situations Nokia intends to further align its demand-supply network.

Successful Brand Extension

Thus brand extension is not only important to gain the competitive advantages of the market, it is also vital for the sustainability of the brand or company.

Failure No.1:  In 1975, launched a computer product, Xerox Data Systems, which had been researched at Xerox PARC.  It failed disastrously  Xerox lost US $85 million.

Failure No.2 – 4 years later,  Early version of a fax machine called a Telecopier.  Another disastrous failure  Xerox is associated almost exclusively with copier machines.

Lesson from Xerox

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It’s vital to know who you are. Nobody knows the future. Brands are bigger than products.

Example

Example

Conclusions

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Brand extension is necessary for brand growth strategy Requires proper market analysis

Thank You