tài liệu tiếng anh brand extension

Brand Extensions:
Determining when and where to extend
your brand into new markets
November 17, 2005
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What You’ll Learn From This Webcast

How to manage your brand portfolio to drive business results

How to identify opportunities in your brand portfolio for new
products and services

Ensure success when expanding into new geographies

Q&A
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Introduction to Prophet
Prophet is a consultancy specializing in creating and implementing
integrated business, brand, and marketing strategies
 We are thought leaders dedicated to advancing the
management of brands as corporate assets –
applying more than 20 years of David Aaker’s
thought leadership in the field, including our most
recent book Brand Portfolio Strategy
 We have a strong track record of creating
quantifiable impact for global companies
 Our consultants bring a unique blend of operating,
management consulting, and agency experience to
our clients’ challenges

 Founded in 1992, Prophet’s global network includes
offices in San Francisco, Chicago, Hamburg,
Houston, London, New York, Tokyo, and Zurich
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Our clients come from a variety of industries and geographies and
represent a mix of B2B and B2C companies
Introduction to Prophet –
Our Client Relationships
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More than 30,000 new product introductions
will be launched in the marketplace this year,
the vast majority of which will represent
extensions of existing brands…
But fewer than 25% will ever achieve
annual retail sales of $7.5 million
Setting the Context
Source: Information Resources Inc.
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Recent Brand Extensions
Dr. Phil’s
Shape Up
Nutrition Bars
Maxine
Magazine Hair
Color
Tropicana
Ice Cream
The Successes… …And the Failures
W
hy do so many new

products and services fail?
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Traditional Model For Driving Business Value
Strategic growth priorities
Organizational
Capabilities
Market
Opportunities
 Most organizations look at an incomplete picture when assessing the
feasibility of brand extensions
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Brand Driven Model For Driving Profitable Growth
 And many successful companies fail when entering new markets following
the traditional model
Organizational
Capabilities
Market
Opportunities
Brand
Sweet Spot
New Model
Organizational
Capabilities
Market
Opportunities
Brand
Relevance
Traditional Model
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Case Study – Building Brand Relevance

 Starwood Hotels saw an opportunity to leverage its capabilities into a
new, hip hotel franchise; however, they did not have the brand to best
exploit the opportunity
Organizational
Capabilities
Market
Opportunities
Brand
Relevance
 Starwood did have the
capabilities to develop
and manage first-class
hospitality offerings
 The W brand of hotels was created
– leveraging Starwood’s capabilities
and seizing the opportunity to
create a brand targeted at an under
reserved segment
 Starwood did not have the
right brand in their portfolio
to take advantage of the
market opportunity to
create a hip hotel chain
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Case Study – Building Brand Relevance
 Positioning a new brand to take advantage of a high-growth opportunity
in a competitive sector
Organizational
Capabilities
Market

Opportunities
Brand
Relevance
 NCR Corporation, a leader in
ATMs and retail point-of-sale
scanners, recognized a major
growth opportunity for its data
warehouse solutions business
unit—Teradata
 NCR had the necessary
data warehousing expertise
and relationships to launch
a new company
 NCR wanted to increase
awareness and preference
for their data warehousing
unit by effectively branding
and positioning it to compete
with strong big brand
competitors so they created
the ‘Teradata’ brand
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Case Study – Developing New Capabilities
 After a series of mergers and acquisitions to increase their capabilities
and offerings, UBS worked to align its brand portfolio with its corporate
strategy and drive greater awareness of the UBS brand
Organizational
Capabilities
Market
Opportunities

Brand
Relevance
 UBS, a leading financial
services firm, facing industry
consolidation had expanded
its operations significantly
through a series of mergers
and acquisitions
 Furthermore despite a strong
market presence, there was a
lack of awareness and
familiarity in many key
markets—so its brand
strength did not match its
business strength
 UBSs strategy of growth
through acquisition had
resulted in a complex brand
portfolio, which limited its
ability to pursue an
integrated business model of
cross-group synergies
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Case study
 IBM had the brand to penetrate the technology consulting market, but did
not have the required organizational capabilities
Organizational
Capabilities
Market
Opportunities

Brand
Equity
 Acquired PWC Consulting
for its capabilities – to
complete the package –
and immediately rolled
PWC into the IBM brand
 Although there were several
competitors, no one was able to
handle full-scale technology
integration like IBM believed it could
 IBM had perceptual
credibility from the
market to further
penetrate the technology
consulting category
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Case Study – Creating New Markets
 Apple had a powerful brand and abundant capabilities to move into the
emerging market of digital music
Organizational
Capabilities
Market
Opportunities
Brand
Relevance
 Apple had untapped
technological and user-
experience capabilities
 Although there was an emerging

opportunity in the digital music
market, no one had made it
simple or affordable enough for
critical mass
 Apple had established a
strong brand that stood for
creative excellence and
superior usability
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Case Study – Creating New Markets
 Boeing saw an opportunity to revolutionize the way we work,
communicate, entertain ourselves and relax while mobile
Organizational
Capabilities
Market
Opportunities
Brand
Relevance
 Boeing created a separate
business unit made up of
many seasoned Boeing
employees, which combined
with the expertise of wireless
internet business they
acquired, made-up the
capabilities they needed
 Boeing, by leveraging their capabilities
and relationships, seized the
opportunity to revolutionize the way
we work, communicate, entertain

ourselves, relax while mobile, and
meet the needs of a previously
underserved segment
 Through customer insights,
Boeing learned that their
brand alone did not have
the brand equities for this
new business and
Connexion by Boeing was
born
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Organizational
Capabilities
Brand
Relevance
Market
Opportunities
Brand Driven Model For Driving Profitable Growth
Building New
Brand Relevance
Developing New
Capabilities
Creating New
Markets
Our focus
for today
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Examples of Successful Brand Extensions
Brand
Existing Category New Category

Association
Extending a
brand to
create new
sources of
revenue
Extending a
brand to create
a strong
affiliation with
customers
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Approach for Determining Brand-Relevant Extensions
Idea
Generation
 
Develop
Proxies
Validate
Concepts
Create
Guidelines
Determine
Key
Associations

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Idea Generation
Hypotheses on
influencing factors


Pre-teen Girls
 Purchase
Behavior
 Activities
 Attitudes
(Hopes & Fears)
 R&D
 Competitive
Moves
Breakfast
Dinner
Dessert
Lunch
Snack
Prepared Convenience Food
Occasions
Inputs
Potential Themes
ON THE GO
SPLURGE
Filters
 Market
Growth &
Attractiveness
 Internal
Capabilities
 Competitive
Landscape
 Company

Resonance
 Customer
Resonance
HEALTH NUT
LOUNGE & LINGER
 One way to start is by conducting a series of ideation sessions to
develop brand extension concepts
ILLUSTRATIVE
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Determine Key Associations that Define
the Brand as it Exists Today

Qualitative ResearchHypotheses on
influencing factors
+
Key Outputs
E.g.:
• Category perceptions,
frames of reference
• Past brand extensions
• Competitive moves
6-8 Key associations that
define the brand and the
category which represent
the most closely held
beliefs customers have
with your brand
Sample Questions
 Who do you view as providing products for this occasion?
 What do you think about Brand X for this occasion (strengths, weaknesses)?

 What would you think if Brand X were to offer a product for this occasion?
 What is important to you when selecting what to serve for this occasion?
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Develop Proxies for the Key Associations
Discovered in

Proxies
 Turn each association into a continuum of attributes and benefits that
range from “close in” to “far out” relative to where customers perceive
the brand to be today

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 Use associations from first round of consumer research to generate concepts
for extending the brand, and test with consumers for relevance and brand fit
Validate Concepts

Team evaluates the associations
revealed in step one of brand
extension, prioritizes them based on
pre-agreed to criteria (e.g.,
alignment with business strategy,
ability to execute, resonance with
target, etc.), and then develops
concepts for the next wave of
research
Current Brand Associations
Determined in Step One
Exploratory Research
Positioning Concept Creation
Process

Concepts for Testing and
Validation
Concept: All in One
A company that
provides everything one
needs to prepare a full
meal, including
appetizer, main course,
and dessert , in a single
package and price
Concept: Easy & Nutritious
A company that
provides healthy meal
options that are high in
nutritional value and
require little work to
prepare
Concept: Powerful Flavor
A company that uses
high quality ingredients
in interesting
combinations to provide
flavorful main courses
Test concepts to understand
customer rationale for why an idea
does or does not fit with the brand
Comfort Food
Dinner
Heat & Eat
Frozen

Convenient
Family is eating
nutritious
ILLUSTRATIVE
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Create Guidelines for Effective Ongoing
Brand Management

Cuisine: Familiar
family favorite food
Convenience:
Minimal prep and
cook time
Care: Shows my
family I care for
them
Any new product opportunity must satisfy all three of
these criteria to be considered brand-relevant
Chicken
Pork
Seafood
Complete Meal
Partial Meal
Single Item
Frozen
Refrigerated
Shelf-Stable
IMPORTANT
IMPERATIVE
High Fit

Low Fit
Protein Meal Component Temperature State
Any new product opportunity must score “high fit” on at least
one of these three criteria to be considered “brand relevant”
ILLUSTRATIVE
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This is a marathon, not a race
 You’ll need understanding and recognition from the executive team that brand
building and successful extensions are more than one year of new advertising -
they can be a multi-year transformational journey
 Be sure to complete all of the steps to ensure follow through and increase the
likelihood of success
Set Your Path Forward
 Your brand extension goals (e.g., revenue growth, brand-building, etc.) should be
clearly defined as early as possible to ensure that executives agree and
employees are on-board and can support launch efforts and ongoing brand
management
There is a lot at stake
 Your brand’s equities will affected based on how your brand extension fairs – if it
is a success, brand equities will be reinforced and may be expanded
Include brand relevance
 The only way to ensure that the new product or service adds to your brand’s
strong equity is to include the all-important 3
rd
component of the credibility
footprint – brand relevance
 Yes, it increases the time, effort, and money required, but the investment will be
worthwhile if your brand extension is a success!
Parting Thoughts
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Building Great Brands and Businesses
Judy Hopelain
Partner
(415) 677-0909 x2817

Questions?
www.prophet.com