Brand management and story telling.docx

[email protected] Perso Email : [email protected] Story telling is the ultimate way to commit/engage customers. Group projects: -Make a Brand Audit. When choosing a brand choose one with a brand extension -Case study (given) Final exam 50%: MCQ + open questions Reference books on syllab...

[email protected] Perso Email : [email protected] Story telling is the ultimate way to commit/engage customers. Group projects: -Make a Brand Audit. When choosing a brand choose one with a brand extension -Case study (given) Final exam 50%: MCQ + open questions Reference books on syllabus S1 Introduction: What’s a brand? -Identify -Differentiation is the key for the brand. To know what the brand stands for. By branded my product I show my difference. A brand can be anything, as long as you can visualize the stuff. Whereas the product is tangible, the brand is intangible. Curve of a product life cycle exists but a brand doesn’t have a life cycle. A brand can never die, it’s timeless. (Luxury also is timeless VS fast-fashion. Ex: Balenciaga was murder by its founder. Heiring has now brought Balenciaga and restarted it. -Trademark is a legal way to promote. It can be registered, as long as you can represent it graphically. It is to ensure that people do not copy you. To ways to measure associations: -a cognitive category -associations ‘network Example: The figure of Ronald Mc Donald is not used anymore by Mc D. Because they wanted to change their customer’s target. II-Brand dimensions: Brand= Signifier + Signified Example: The star of Mercedes, as a signifier it’s a star but it terms of signified it refers to prosperity -Brand signifier: All the elements that help us to recognize and identify the brand. Today there are 5 dimensions of it. 20 years ago it wasn’t like that there were primarily talking about the visual of the brand. Brand sensory identity: set of perceivable brand elements which activate senses and enable to identity & differentiate. The more a brand cover these dimensions the better, but in realty no brand can cover all 5. The VISUAL: Brand name: it does symbolize or capitalize the theme or the associations. Sometimes the brand has to change name, which takes times. Have to be easy to remember. How do you build a brand name: Family name (Guerlain; Leclerc; Ford; Renault; Peugeot; Tata); Adapted family name (IKEA; LU; Haribo; BIC; Adidas) geographical name (Pentagonia; Ushuia); Initial (H&M); Expressions (Du pareille au même); Word (KODAK; GAP). Brand Emblems: Logo from the greec. Logo elements/different logos types (alphanumeric/mixed/iconic) Unique… Logo coherence over time: Coca cola quite loyal to the original logo Starbucks evolution: changed over time their logo A strong logo should be adaptable: Peugeot How do you measure a logo: first you check if people recognize it Brand symbols Brand signature: a short phrase that should resume what the brand stands for. L’Oréal “Because I’m worth it”; Nespresso “What else?”. It should tell why you buy the brand. Advertising character URL THE DESIGN: THE SOUND: The first brand who introduce jingle is Dim. A Harley-Davidson no bike leaves the shop if the sound is not approved. THE SMELL: attached to the brand, like playmo (pate à modeler); Haribo; Lush … THE TASTE: Nutella has a unique taste/ Fraises Tagada Haribo -Brand signified : Functional dimension : Volvo before the purschased by Chinese, based their brand on crash tests. Attached to the use of the brand product Symbolical dimension: Heineken is about friendship for example. These dimensions are connected to the brand but they are not attached to the use of the brand. The key to communication is feedbacks -Brand functions: Why do brands matter? For Consumers: a way to express yourself through the branded. For companies: a way to appropriate benefits. To identify and certify the origins of the products. Exercise on brand types: -In 1966 Nutella was a product brand -Now Nutella is an umbrella brand S2: Build strong brands Positioning is actually at the core of the marketing process Study the market Develop strategy Implement policiesControl… A choice of strategy. Any decision is risky , because a market changes. Once implemented you have to check Secondary research= research which were already completed, done. Available. Cheap. You can have issues with it so you do : Primary research= you run your own research. Primary research is composed of 2 types of research: -Quantitative research= about numbers , number of respondents, YES or NO -Qualitative research= more about what people feel, very open questions It’s more about brand image. Not about numbers. PESTEL Internal analysis: you analyze your company; where am I strong/weak? Is my marketing, communication efficient? My product is unique? From that analysis you come out with the Strengths/Weaknesses (SWAT) PESTEL: -Political= is there a risk to enter this market in terms of politic -Economic= is there an economical risk? Example= Hidalgo in Paris wants to stop cars circulating, so it might be a risk for a car seller, designer -Social= consumer trends that can influence -Technological= Is there any innovation that can impact the market, new patents -Ecological= availability of natural resources. In France for example between two similar products the one which people will buy is the one respecting the environment. -Legal= Are there any legal rule that can affect your product? Key questions: Understanding their needs and wants: A consumer is the one that have already buy two times a product. Who is involved in the process of buying and consuming? The decision marker might not be the buyer Who are they ? and which role do they play? What are their choice criteria ? The usage: -When do you use the product? -Where do you use it? -Where do they buy it? Do that, to understand consumers, there is nothing better than talking to them. Consumer research as a whole, follow the same process: Step 1= Defining the marketing problem? (Why are we failing for example?) Step 2= Formulating the question Step 3=Choosing the methodology Step 4= Collecting and analyzing data Step 5= Competition: You have to address this analysis; the competition is already pretty efficient. You need to understand who are they? What is their strategy? Are they successful? Their failure and why? You have to learn from your competitors. For example, the fashion industry and the cosmetics industry can learn from each other, their failures and success stories. How do you drive a competitors analysis? You look at their ads, the press releases, the recruitment ads… SUM UP: External analysis consist at looking at the market, the environment Consumer insights= “I wish I have but I don’t find that in the market” if these insights come several times it can push to a new product, opportunity. For example: Dove have run several discussions with their consumers, a woman said she was fed up with having marks under her arms pits and she wasn’t the only one. Dove did researches to develop a new product. III-Strategy: Segmentation: identifying group of consumers who basically behave the same way, same process. Same desires. When you face a large market, you need first to segment. Main criteria of segmentation: 1)Geography 2) Demographics 3) Psychographics / Behavioral: 4) Benefits 5) Usage Rate For example: -Age and gender -Income -Personality -Region etc… Targeting: identifying the subgroups who are going the best way to your offer/product Brand positioning: Positioning statement. The art of designing the company offer and image… 4 elements: to whom? Why believe me? What’s my market? Your signature your slogan can be a way to express your position On what market your operate, whom you want to compete with, which competitors the consumer has in mind? Minute maid, is it a fruit juice or soft drinks? It was place as a soft drink alternative, which is why they put it in a can, available in automatic machines. Nesquik, each one of their product the reference market is different. Apericube, is not considered as cheese but as a snack for aperitif, is not situated in the Fromagerie (in a supermarket). POP: What you need to offer to be credible in a specific market. Example: a detergent, the POP is to clean. If I ‘ m cleaning I could be credible on the detergent market. Is it enough no you have to promise something like clean at low temperature for example. But it’s enough to be credible. POPs are common to all. POD: Distinctive attributes, that will make the customer buy your product. If the consumer tells you that you are unique then you win, it is coming from the customer. Ex: Smartphones POP= Communicate with people POD= Camera Slowly sometimes a POD introduce by one brand becomes overtime a POP, for all the brands. Mc Donald, introduced the Mc Café, because Starbucks had a POD which was to sell coffee. So to be a competitor Mc Donald adopted this POD. 2- Use visuals/imagery usually associated to the category: Like for sparkling water there are designs of bubbles. Recognized by consumers as being a part of the imagery. 3-You can compare brand: You can use a category benchmark products Define positioning: build a POD: Two types of POD: -purely based on functional attributes: Dove -based on emotional benefit: image, relationships of customers. Emotional PODs: Perfume industry Harley Davidson “don’t wannabe” Louis Vuitton Example: GEOX “the shoe that breathes” very clear functional benefit. Example: Trésor “le parfum des instants précieux » emotional Luxury goods = emotional Salakis= functional benefit “100% milk brebis” Syrtos =emotional benefit because it reminds of Greece Positioning map: Position you on the map and the competition. To know where you stand. Don’t forget any competitor. Depending on the perception of your brand by your consumers. Use the axe. According to your consumers feedbacks. To be on the axe= is about honesty and sincerity To seem= is about appearance, how we want to be perceive. To define axes you have to think of something that is relevant and specific. Don’t go for basic stuff (like low price/high price). You need to justify that you can deliver the promise. Example: Ice cream brand discovered that some family didn’t buy ice cream because their freezer was too small, so they developed an ice cream that can be place outside of the freezer and only put in the freezer 15 minutes before consuming it. Example: Nespresso had a pattern for 10 years so that others couldn’t copy them. Crafting the brand positioning statement: The formula will never be showed to the customers, but it helps to know the positioning. S3: Evaluate a brand: key analytical tools Brand awareness (la notoriety): The higher the awareness, the stronger is the brand. The awareness is the result of your communication. If your communication strategy doesn’t reflect in a high awareness, you are not doing a good job. Your target group have to be aware of your brand. 3 levels of awareness: -TOP of MIND(TOM)= This is the brand coming to your mind immediately before any other brand. -Unaided Awareness (UA)(Spontaneous) -Aided Awareness/ recognition(AA) Objectives in brand awareness: Mass Media= TV is still the media you should go for first to build awareness of you brand. To quickly create awareness, TV is still the media. The target group you can reach with TV is 54-57 years old. The average audience is getting more and more old. Brand image: What do I associate the brand with? What in my mind does the brand stand for? It is shape by the communication of the brand. 10 dimensions of brand image: tangible and intangible characteristics. These dimensions define the brand image. The image is from a consumer point of view. We can only collect it through consumers. Ex: Ferrari: -Formula 1 -Red cars -Horse -Italy -Speed -Timeless Elements very close to the products but also emotional elements. Image build from customers’ feedback. Qualitative research= understand customers opinions, to get reactions The prime method to collect this research is focus group. There is no percentage qualification for this type of research. Example: Mamie Nova From that you see where the competition in terms of image is. Nestlé’s Digital acceleration team, look at what people are saying of the brand on social media. 24H/7 days a week. They monitor it, make sure that it is positive and strong. Example: Sodebo semiotic analysis The old sodebo logo was summited to people to express their opinion. No illustration of pleasure no dynamism. The new logo was also submitted, associate it to pleasure. The sun symbol of pleasure. That’s enough to actually reflect a positive image among customers. Quantitative research= you go with larger groups to obtain percentages. Example: Tic tac VS Mentos In two dimensions the image of Tic tac is far away from the image of Mentos. If tic tac has to measure to what extend the candy is low calorie, the goals is accomplished. Core associations= product’s DNA Peripheral associations Example : Andros The core association = fruit/ pleasure/natural/variety of flavors Peripheral association= jam/compote/vitamin/delight/ family. Andros wanted to check whether their brand image has change after the launch of the fruit juice. Nothing changed in the core association but for peripheral association, it changed a little bit. Positive associations were added. This is a pretty good brand extension. Brand personality: Example: The use of George Clooney is not a coincidence, by having him Nespresso did a very smart marketing process. What else? It is pretty arrogant. Without Clooney it might have been too much arrogant. But thanks to his personality it is acceptable. You transfer the personality features of George Clooney to the brand. This arrogance is undermined by the intelligence of the woman to steal the coffee from Clooney. Nespresso was initially a failure; the targets were professional individuals. To buy a coffee machine, they only work with certain brands, really premium position. When the brand was launched, the first question they ask you in the shop “would you like a coffee?”. Measuring brand personality: Sincerity (honest, down to earth)/Excitement (daring)/Competence (ability, success) /Sophistication/ Ruggedness A tool? Yes it’s a tool. Example= Ariel is innovative and powerful, use by P&G to describe the brand. Only personality traits. Personality is useful to understand a brand image. How to communicate Brand personality? Celebrity endorsement: The celebrity personality traits are transferred to the brand. You use celebrities. It is a bit risky: Example: Tiger woods for Rolex, when he cheated on his wife it affected the brand. It is as well risky if the brand is not exclusive to your brand. The imagery of associated user: Cow boys for Malboro Dove uses women Chanel and Bourgeois use imagery completely different. Executional elements: advertising tone, music, rhythm, colors… You can measure personality as perceived by customers. Brand identity: The identity is from the brand perspective. I will as a brand, express how I want to identify myself. Brand identity VS Brand image Company-focussed VS Consumers-focussed. Identity prism: It describes the components which do describe the brand identity. -physique facet of the prism= the logo, the pack, the color, the name. Through these elements there are messages. -personality facet of the prism= personality traits/ all the features having to do with people but reflecting on the brand. -culture facet of the prism= the values of a brand. -relationship facet of the prism= Harley Davidson and Starbucks= friendship/community (like Apple)/What is the type of relation between the brand and the people. -reflection facet of the prism= who or what does the user looks like in people minds? Stereotypical user. -self-image facet of the prism= how I want to be seen as a brand. The objective which you look for through your purchase decision. 6 dimensions. Example Starbucks: Physique= a mermaid, green color, products, the atmosphere of this coffee shop Personality= Traditional/Federative/Friendly/ Welcomer Culture=Commitment Relationship= Proximity Reflection= Connected Self-image= perpetuate traditions Brand platform= a tool internal within companies, the management exposes its model of brand. Key components: -vision of a brand: Ex: Facebook the vision is to make people happy. All companies do not have vision. For Evian: the vision is “la santé par l’eau” -mission: to what extend do I contribute to the vision -target -values -promise: the USP, the positioning -personality: natural/easy going Brand equity: Capital de la marque. Back in the 80’s when a brand was for sale the brand acquisition. Today the price you would have to pay for the same company would be up to 20 to 40 times x brand results. Today we have to pay for the Brand, before we couldn’t measure the value of the brand. Today you buy a brand for also the value. Brand equity is that= the added value created by a brand (on top of the product creation). The professor was invited to do a blind test of Cola in Detroit: Step 1 you taste A and B and you write the one you prefer It happened that the result of the test was 50%-50% Step 2 people of the organization tell you that this one is Pepsi and the other is something else and you taste it and say the one you prefer. The results were the same. Step 3 Same test but this time the B is Coca cola. This time the result is different 25% and 75% (for Coca Cola). So half of the people that chose first Pepsi with only their taste, chose to move to Coca cola just based on the fact that they know that it is Coca cola. Despite their own taste. This is brand equity. This is why Coca cola is the 1st on the market and Pepsi is a challenger. It’s based on the awareness, the brand image and the preference etc… Ensure the brand that the brand stays strong. It’s not manipulation, in consuming coca cola you have a satisfaction drinking it. The same goes for Pampers, the price is not a problem. Ranking Interbrand Best Global Brands (2021): Apple: 1 Amazon: 2 https://interbrand.com/best-global-brands/ = 2023 turnover= le chiffre d’affaires Exercise: Brand identity prism for Tropicana -physique= Fruit juices/different colors, orange, green/leaf/organic /tropical fruits -personality=Joyful/Attractive/reliable -culture=Florida/Sun -relationship=Trustworthy -reflection=Middle class/family oriented/ -self Image= Healthy people Session 4: Creation of a brand Agencies that help to find a name, to find a connection between the name and the message the brand wants to be referred to. 2 ways: -develop a new concept - 2.1. Develop a new concept: -Collect Data -Segment the market -Benchmark -Prospective studies: consumer analysis (consumer insights: gather consumers to find what is missing on the market feasible and profitable). To get the idea from the consumers is better because they are the people that will buy your products. 2-Diagnosis 3-Phase of idea generation and selection: Get the help of outside partners/ Crowd sourcing= collect feedbacks from consumers What is consumer insight? Unmet needs, wants or desires of consumers on this category/market Dove has done a survey, on women and the standards on their beauty “ Real beauty”. Results shown that women see themselves less attractive than they are, they degrade themselves. After this survey Dove developed a campaign “Real beauty campaign”. How women perceive their beauty. Water (map): Two axes “For all”/” Functional”/”For me” Concept Writing: -Start with a statement, a promise: you need to sell what you deliver. -write with empathy “we understand your problem, we share it” Awareness. -Include a reason to believe that your product will satisfy the need -bottom of concept: product range (put an example drawing of what the product could look like) -Price information -30 s max to read the promise statement. Example: Aromazone You can test with consumers: “do you think that way of communicating will be right ?” Introduce names Concept testing: Better to test a name Variables: Like/dislike Understanding User image Brand image Distinctiveness Credibility Value for money Purchase intent II-Create a brand name: “Do you I want a name that refer to my mother company like Danone=Danette…?” Creative groups/individual Creation= Pitch= an exercise when you give the same brief to several groups, and they compete to come with the best idea. Document search Software (IA can come up with name proposal too) Brand database Then you select the name After that you do a control to check if the name is okay for consumers And then you do a “Marketing Language Legal”. Preparatory phase: Brief Market informations + competitors Company informations + existing brands and products New concept/positioning: promise+reason-why Specify Product range (if already anticipated) Target Communication on this brand-name? Planning: target dates for finalized name and communication Specify the search: – Name for a unique brand? – Further extensions to come? – Name decision based on consumer-testing? The briefing is going to be relevant for external and internal research. Possibly add some evocation themes: -associated to brand promise Ex: “No more yellow stains”= Dove= secret/whiteness, purity -Add a guideline on brand architecture system To know for example if the brand would refer directly to the mother brand. Whatever the agency or the internal, you will compare with the briefing. Sometimes, in particular for advertising, you develop a briefing paper that you would give to the agency and the agency will come back later with the idea. The briefing paper has to be the reference paper. Phase 2: Creative phase Co-creations= two brands example Hermès and Apple, come up with a collaboration to profit the both of them. The Name Agency comes back with 200 to 5000 names Phase 3: Selection Phase To reduce the numbers of the names proposals To have 15-20 names Phase 4: Control Phase Legal Phase 5: Trademark registration INPI/OMPI Administration stuff doesn’t mean much in terms of protection, but it is a process. You apply to 3 categories (on 45) when you register your trademark. To be register you name has to be lawful, distinctive and available. Focus: research on brand name Onomatopoeia, example Tic tac, easy to remember IV-Risks associated to brand name creation: -Legal risks: YSL had to rename his perfume “Champagne” after losing a trial against Champagne producers in 1993. Bio by Danone renamed Activia in 2006 -Linguistic risk: Nova in Latin America translate to useless. Tide was renamed Ariel in France, because otherwise didn’t mean anything. Chambourcy can be offensive, vulgar, in Chinese, so Nestlé cancelled it. -Functional risk: Générale des Eaux, limited to a function so if you want to extend it might be difficult. V-Developing the logo: Design agencies: Dragon rouge/Carré Noir/Brandimage A brief, the agency present agency and you select and then you control. Brief to design agency: Market / Competitors Company information Brand : positioning, planned product-range Target Brand logo vs company logo (architecture) Any packaging constraint you anticipate Planning Budget Planned consumer research to evaluate logo before launch? Product range management actions: Pruning=reduction of the number of items Save costs Cannibalization= you lose sells on one product because of your new product, the benefit is minimal, you lose on one side and you win on the other. -Line extension: Extending the range Session 5: Growing the bran I-Brand life-cycle: defying time: Standard product life-cycle:The launch period (not much sale or profits) then the growth, then you reach the maturity place (plateau) and then the decline (the sales fall). Do brand have a life cycle? No, brands can grow but do not die. Ex: Michelin (1898); Louis Vuitton (1854); Moët & Chandon (1743) If Brand die it probably because the founder decide to kill it or an event, but they don’t die by themselves. Brands might disappeared for a period of time: ex: Balenciaga, the couturier decided to make disappeared his brand because he was an artist and not a tailor. But recently Keiring decided to relaunched Balenciaga. Ex: IKKS is now struggling it might disappear for some time and reappear later. 1-Time of Heroism 2-Time of wisdom 3-Time of Myth: once this stage have been reached they can talked about their history, their storytelling. Brand as a myth: The brand does acquire dimension. Myth are universals and brand when reaching that stage are universal. Myths are stories, that you can tell and talk about. It is more about an emotional storytelling. Ex: L’Odyssée de Cartier (2012), 3 min movie, 19.9 M views on Youtube international, timeless, magical The first brand which founded offices all around the brand. A panther, which is the brand animal, represent one of the identifiers of the brand. Cartier was the first brand of jewelry to change to colors and animals. Like l’oeuf de Phaberger. It starts in Saint-Peterburg (cartier was supplier of the Tsars), famous rings in the snow ; then China, fighting with the dragon, then India (Maharajas consumers of jewels), then Jardin d’Eden (maybe), then Santos Duman (created an airplane, friend of the Cartier’s brothers), Sauntos Dumon the watch was created for him by the famous brothers. (Define the status quo). Then the Panther lands in Paris, Place Vendome where he encounters a beautiful woman and then all of this is locked in a box of Cartier Jewelry. Brands can be “Sleeping beauty”: Brands can ressuscite. Ex: Mini, disappeared and was relaunched by BMW. Ex: Beatle (Wolvasgen) relaunched Ex: Combi car, new version of it was relaunched. Ex: Converse, went bankrupt Ex: Solex was relaunched too , as e-Solex Ex: Schaiparelli, the brand disappeared and now is back in 2012 You can’t relaunched a brand without being based on the legacy/the spirit. The spirit of the founder needs to be restaured. But sometimes they fail, ex The Jordache, jeans industry. Ex: Givenchy was relaunched with Matthew Williams and he decided to not keep the same spirit and it didn’t worked. II-Modifying and improving: 2.1) Modify and improve brand positioning: If innovation enables you to bring something new for example. You can add a new point of difference. Ex: You produce sport shoes; snickers will not be only shoes to work out with but also fashionable shoes. 2.2) Modify reference product of the brand: But you don’t change the positioning. Ex: Dim Ex:BN used to pretty established on the market place, in 1989 the brand bring the smiling face on the biscuit. Product modification can be limited, you increased the differentiation. You improved your POD. 2.3) Improve product packaging: Ex: Teisseire, changed it, more colorful, but nothing changed in the POD. Ex:Evian, facial spray Ex: BN was before named La Nantaise(Choco BN) 2.4) Extend consumer target: -The first task is to try to gain back your lost consumers, which is hard because often it’s because a bad experience. -To consider new target groups: Mercedes used to address world established consumers and later with the 30/45 with 4x4 they started to consider a younger target. Petit Bateau, decided to launched a collection for adults. Comptoir des cotonniers, decided to be attractive for mothers and daughters, new targets. Haribo, targets now adults, based their campaign on nostalgy. -Extend to the opposite sex: Zara decide to go for men clothes too, same for Dim, Lego to Lego friends, Wilkinson to products for women, L’oréal Elseve knowed for women products are now also for men. 2.5) Renew brand communication: Evian, the idea to keep being young. To illustrate their message they used ads with babies, the first one was in 1998, then 2009, 2013 and 2016. Real saga, which keep the idea 2.6) Brand story-telling: The art to tell a story about the brand (or company), in order to communicate an emotional message and build strong imagery and territory. Ex: Apple liberating men from IBM and the unfriendly technology-driven machines. Developed in the 90s, initially “ good stories” from employees (internal communication): used to motivate the employees Brand storytelling in advertising: -Burberry 2016, film de Noel 15M views on YouTube: Equipping the Bristh Soldiers, created the waterproof textile that made the Trench so famous. -Google’s Reunion ad: Retrouvailles entre two old men from Pakistan and India -Lacoste Timeless -Coca cola happiness machine Narrative system of brand story-telling: -An initial situation: creation III-Brand stretching: line VS brand extension: Academics distinguish between: The Nature and the function When the function and the similar that is called a line extension A line extension: consists of using an existing brand to launch a new product in a product category … 2 types of line extension: -Horizontal: launching a product which is going to be very comparable in terms of quality and price to the ones you already have -Vertical: Downward, using an existing brand to launch a new product which will have a lower price and quality Ex: Armani Jeans. Upward= the opposite, higher price levels/quality, 1664 Price > Kronenbourg Pros and Cons: Pros -Can expand target -consolidates market share -more opportunities for brand contact… Cons: -Creates confusion among consumers (too much choice) -Major risk … Horizontal line extension: First you must establish a strong parent brand= awareness and image and need to be consistent. Vertical extension: Pros -Broader target: reach consumers in higher margin segments -Enhances brand image: positive “halo” effect -Can strengthen brand equity You need to start from a medium price level, to claim you are going up. Key to success: You need to start from a strong parent brand It have to be consistent, it needs to have in consumer minds a logical If you meet these requirements, it is feasible. When you go downward, you are going to democratize the brand, more available. But they are risks: your image can be damaged, it is not recommendable for Luxury brands. The Armani Jeans wasn’t a good example. Successful downward extensions: BMW and Hop (Air France) BRAND EXTENSION: Very small percentage of extension. More risky, you are going to launched products in category when you are not established. Ex: Taillefine, was introduced in 1964 as a yogurt but in 1997 the brand launched Light biscuits and in 2000 Mineral water. Genuine brand extension. IV-Brand extension: Dove, still in the hygiene industry but not same categories. Virgin How far can you extend? Pros and cons: Of course it does 1) Facilitate acceptance of new products. Ex: Milka, pretty successful to brand extensions. 2)Positive repercussions for parent brand. Chanel extended in the Watch and Jewels industry Hermes does lipsticks now. CONS: Can fail and hurt motherbrand image. Ex: Levis Biggest failure, BIC famous for their pencil, decided to extand to perfume, cheap perfume (2-3 euros). Why did they fail? They totally neglected the emotional role, attachment. The retail process. Also it can succeed but harm motherbrand image. Pierre Cardin offered his names to hundreds licences For the presentation: Did the brand extension helped the motherbrand? In what ways? Developing a brand extension: process The Davidson target: brand extension limits Redbull: line extension (sugar free) Still in beverage category Spontanous link to RedBull: extreme sports; energy bar; Sweets (Chewing Gum). Forbidden Zone: Food, Medicine, Cigarettes and Ice Cream Session 6: Promotion