BRAND EXTENSION

Brand extensions can endanger brandversus

Brand extensions are an important brand growth strategy

Group 1 :Amirul FaizAbd. MajidAmeeruz KamalTengku Mohd. FaizalAzmanSuzilawatiNormazleza

Brand

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.

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?

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?

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 onlyimportant 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

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

Example

Example

Conclusions

Brand extension is necessary for brand growth strategy

Requires proper market analysis

Thank You