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New Brand Extensions: Patterns of Success and Failure
Jaywant Singh, John Scriven, Maria Clemente, Wendy Lomax and Malcolm Wright, Journal of Advertising Research, Vol. 52, No. 2, 2012, pp. 234-242
The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions.
The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions. The analysis framework consists of purchase data for 47 extensions across 30 consumer packaged-goods categories in a large-scale U.K.-based consumer panel. The results show that the performance of successful new extensions is comparable to that of established ones by the second quarter following their launch. Successful extensions continue to gain customers from that point forward. Failing extensions, however, show declines in both the number of customers and the repeat-purchase rate from the third quarter onwards. The study suggests a diagnostic framework to assess the performance of new brand extensions.
So many different suns: How successful brands hit the conflux of affordability and aspiration
Shobha Prasad and Sangeeta Gupta, ESOMAR, Asia Pacific, Shanghai, April 2012
This paper discusses how brands can be positioned in emerging markets like India as both affordable and desirable, challenging the assumed incompatibility of low priced and aspirational positionings.
This paper discusses how brands can be positioned in emerging markets like India as both affordable and desirable, challenging the assumed incompatibility of low priced and aspirational positionings. It looks at what creates "star" brands at all market levels and discusses the Theory of Multiple Poverty Lines, which argues that there are multiple affluence pyramids and points of affluence that individuals aspire to, and that it is possible to identify the conflux between aspiration and affordability at the various market levels. Examples from the Indian market are discussed, including Samsung (successful in this respect) and the Tata Nano car (less successful). Overall, the paper provides a deeper understanding of the dynamics between these concepts and consumption behaviour, to arrive at a framework that helps marketers make better brand decisions in emerging markets.
Conceptualisation and modelling of the process behind brand association transfer
Jean Boisvert, International Journal of Market Research, Vol. 53, No. 4, 2011, pp. 541-556
Although the concept of affect transfer has been addressed by many in the literature, the process underlying the transfer of brand associations from parent brands to their extensions is still unclear despite important theoretical and managerial implications.
Although the concept of affect transfer has been addressed by many in the literature, the process underlying the transfer of brand associations from parent brands to their extensions is still unclear despite important theoretical and managerial implications. This paper proposes to conceptualise and model the empirical process underlying such transfer. The findings reveal that the capability of a parent brand to transfer specific brand associations to a line extension depends on an optimisation process where strong transfer occurs only when repeated measures of the same associations are not statistically distinct. Conversely, the transfer is limited when the statistical difference is either positive or negative in repeated measures. When the difference is positive, the extension appears to already ‘own’ the association in comparison to the parent brand and when negative the association is not compatible with the extension. The methodological and managerial implications of brand association transfer are discussed.
How advertising strategy affects brand and USP recall for new brands and extensions
Nathalie Dens and Patrick De Pelsmacker, International Journal of Advertising, Vol. 29, No. 2, 2010, pp. 165-194
We investigate possible interaction effects between new product branding strategies (new brands versus extensions) and advertising strategies (informational, positive emotional and negative emotional) for two products differing in product category involvement (laptop computers and candy bars) on brand recall and recall of the unique selling proposition (USP).
We investigate possible interaction effects between new product branding strategies (new brands versus extensions) and advertising strategies (informational, positive emotional and negative emotional) for two products differing in product category involvement (laptop computers and candy bars) on brand recall and recall of the unique selling proposition (USP). Two studies were set up with samples representative of the Flemish population (n = 749 and n = 751). Results show that extensions benefit from a brand recall advantage compared to completely new brands, but positive emotional appeals help bridge the gap for new brands. Informational appeals, on the other hand, stimulate USP recall, especially for extensions and regardless of the product category.
Effects of different types of perceived similarity and subjective knowledge in evaluations of brand extensions
Leif E. Hem and Nina M. Iversen, International Journal of Market Research, Vol. 51, No. 6, 2009, pp. 797-818
The most successful brand extensions are considered to be those having high perceived similarity between the parent brand and the extensions, and being well known in the marketplace.
The most successful brand extensions are considered to be those having high perceived similarity between the parent brand and the extensions, and being well known in the marketplace. However, previous research has mainly examined the effects of overall measures of perceived similarity between a parent brand and an extension. Correspondingly, little is known about the effects of different areas of consumer knowledge. This study investigates the effects of three types of perceived similarity (usage, associations, competence) and three areas of consumer knowledge (original brand, original category, extension category) on evaluations of brand extensions. The results indicate that some types of perceived similarity and knowledge are more important than others. These findings imply that brand managers need to identify and measure the relevant types of perceived similarity and knowledge that will affect evaluations of brand extensions in order to design effective communication strategies for extensions.
Radical Brand Evolution: A Case-Based Framework
Bill Merrilees, Journal of Advertising Research, Vol. 45, No. 2, June 2005, pp. 201-210
This article examines how societal shifts resulting in a better-informed consumer are changing the nature of the customer-brand relationship as well as the nature of branding building.
This article examines how societal shifts resulting in a better-informed consumer are changing the nature of the customer-brand relationship as well as the nature of branding building. As the importance of nonmarketing touchpoints such as customer service departments and the actual in-store experience continues to increase, marketing is challenged to step beyond its traditional role to prove its value in generating business growth. Toward achieving this end, marketing must respond to three key challenges: the ability to maintain superiority, the need for achieving returns with fewer resources, and finding ways to manage the expanding complexity of today's customer touchpoints.
Brand Key Performance Indicators as a Force for Brand Equity Management
Joel Rubinson and Markus Pfeiffer, Journal of Advertising Research, Vol. 45, No. 2, June 2005, pp. 187-197
A measurable framework for brand equity is presented that links together financial performance, loyalty, and attitudinal dimensions and for understanding the impact of a corporate brand on sub-brands that share the same name.
A measurable framework for brand equity is presented that links together financial performance, loyalty, and attitudinal dimensions and for understanding the impact of a corporate brand on sub-brands that share the same name. This study describes specific key performance indicator measures and, most importantly, how to intelligently set targets for each measure, so that marketers can track and manage the success of their brands. A case history for a large European telecommunications company is presented that shows how this framework produced a very different view of the health of the company's brands versus prior research, one that was ultimately accepted as correct. This study discusses organizational problems the CMO had to address as he tried to implement this new framework, and how to generalize this approach to other industries.
In Search of True Brand Equity Metrics: All Market Share Ain't Created Equal
Thomas J. Reynolds and Carol B. Phillips, Journal of Advertising Research, Vol. 45, No. 2, June 2005, pp. 171-186
The elusive notion of brand equity is operationalized in a “share tiering” framework with a combination of multiple constructs: (1) relative barrier or brand price, (2) brand quality perceptions, (3) brand purchase loyalty, and (4) self-report future brand purchase trend.
The elusive notion of brand equity is operationalized in a “share tiering” framework with a combination of multiple constructs: (1) relative barrier or brand price, (2) brand quality perceptions, (3) brand purchase loyalty, and (4) self-report future brand purchase trend. This general measurement framework for “true” brand equity when applied longitudinally permits the evaluation of markerting ROI. Recommended measures for the “share tiering” approach to brand equity measurement are illustrated using the cola category as an example.
Big families. Stretching the domain of brands
Cecília Russo and Jaime Troiano, ESOMAR, Latin America Conf, Mexico City, October 2004
The past century was marked by the birth of nearly every brand we know and consume today. In the 21st century, on the other hand, brands will multiply their portfolio into different products and services.
The past century was marked by the birth of nearly every brand we know and consume today. In the 21st century, on the other hand, brands will multiply their portfolio into different products and services. It is going to be the era of brand extensions! This paper shows a pioneer and extensive study that identified the process through which companies in Brazil have been developing brand extensions. The “Big Families” project examined 64 business categories that resulted in the analysis of 456 brands and 2,228 products. Above all, the study is an accurate portrait of what companies have been doing to stretch the domain of their most valuable asset, their brand.
Can advertisements of brand extensions revitalise flagship products? An experiment
Leif E. Hem, Oivind Eismann and Magne Supphellen, International Journal of Advertising, Vol. 23, No. 2, 2004, pp. 173-196
Previous research on brand extension has been much concerned with the potentially negative backfire effects of unsuccessful extensions.
Previous research on brand extension has been much concerned with the potentially negative backfire effects of unsuccessful extensions. The present research focuses on the upward potential of positive transfer effects from successful extensions. Of special interest is positive transfer effects on flagship products, these being the products most closely related to the brand name in consumer memory. Whereas the branding literature indicates that brand extension could be a viable strategy for brands in need of revitalisation, little is known about the effect of extensions on flagship products. The study object was a real flagship product in the soft-drink category with serious image problems. Transfer effects on this flagship were studied from ads displaying either line extensions (new products in the same category) or concept extensions (new products in a new category). All extensions were profiled in such a way as to signal a more updated and favourable image than that of the flagship product. Transfer effects on the image of the flagship were measured immediately after exposure to extension advertisements and again one week later. Immediately after exposure, both line and concept extensions had positive effects on the image of the flagship product. The positive effect of concept extensions remained even after one week. When combined with previous research, the present findings suggest that ads for concept extensions have greater upward potential in terms of positive transfer effects and less downward risk in terms of dilution, than ads for line extensions.
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