

Managing Brand Extensions
 Brand Mix
▪ Definitions ▪ Breadth and Depth of Brand Mix

 Brand Extensions
▪ How to make brand extensions? ▪ Advantages and disadvantages ▪ Examples

1.2



A company may have more than one brands in different product categories
It is critical that the firm can help consumers understand its products and services and organize them in their minds. The brand-product matrix help to characterize and formulate branding strategies by defining various relationships among brands and products.
1.3







The brand-product matrix
 A graphical representation of all the brands and products

sold by the firm  Brands  rows  Products  columns 1 A Brands B

Products 2 3

4

C
1.4



P&G Matrix
Shampoo Cosmetics Toothpaste Toothbrush Floss

Brands

1.5



Definitions
 Brand line
▪ All products sold under a particular brand

1.6



P&G Matrix
Brand Line

1.7



Definitions
 Brand line  Brand portfolio
▪ The set of all brands in a particular category

1.8



P&G Matrix
Brand Portfolio

1.9



Definitions
 Brand line  Brand portfolio  Brand mix
▪ The set of all brands that a particular seller/company makes available to buyers

1.10



P&G Matrix

Brand Mix

1.11



Breadth of brand mix
 How many different products should we carry?  (Whether we should go into a product category?)
▪ Aggregate market factors
▪ ▪ ▪ ▪ ▪ Market size Market growth Stage in product life cycle Profits Etc.

1.12



Breadth of brand mix
 How many different products should we carry?  (Whether we should go into a product category?)
▪ Aggregate market factors ▪ Category factors
▪ ▪ ▪ ▪ ▪ Threats of new entrants Bargaining power Current rivalry Pressures of substitutes Etc.

1.13



Breadth of brand mix
 How many different products