•New Product launch has always been a popular strategy of the organisations to seek growth There are three broad strategies to launch a new product: (i) Line Extension; (ii) Brand Extension; and(iii) New Brand.
•Brand extension option has become an increasingly popular way to enhance the equity associated with well-known and well-respected brands Reduce introductory marketing expenses Reduce the risk of complicated buying decisions Enhance the prospects of gaining access by helping retailer and consumer acceptance
BRAND EXTENSION
•Using an existing brand name to promote a product in a different category, is Brand Extension or
•Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category.
•The key difference between line and brand extension is the product category.
•In line extension the Product Category remains same whereas in brand extensions product category changes.
•Authors of the research article-Dhananjay Bapat and J. S. Panwar-CONSUMER EVALUATION OF BRAND EXTENSIONS
Results of the study:•There are certain associations which will be relevant for ensuring success in the extension category.
Two brand affects :
Strong brand associations
Borrowed factors
FINDINGS:
•The findings show that extensions into similar categories tend to be more readily accepted. These findings are consistent across various product and service categories. Based on regression analysis, the study identifies brand relevance success factors. The findings indicate that success of brand extensions depends not only on strong parent brand associations but also on extendable category borrowed brand association
MANAGERIAL IMPLICATIONS:
Several implications for both brand management theory and practice
•It underscores the importance of similarity in brand extension success evaluation
•In the case of
•Lux, Amul and Tata, there is a scope to leverage strong brand associations for ensuring success in the brand extension.
•Extension advertisement emphasis
•Brand associations help customers infer extension features and benefits.
•Repeated exposure to appropriate brand association helps customers establish linkages between the brand and extension categories.
•Brand associations play an important role in the brand extension success
CONCLUSION:
Organizations must look into the parent brand and check the brand associations of the parent brand when launching a product leveraging the parent brand.
The consumers always try to connect and evaluate the extension brands keeping the associations that are formed in their minds of the parent brand.
The expectations of the consumer are also framed by them and expects the benefits which are physical as well as Intangible benefits.
so, Organizations have to look into all these aspects and must take a decision while launching a brand, whether to leverage the parent brand or they have to launch a new brand all together.
