Line Extention vs Brand Extention

LINE EXTENSION

Is increasing the number of products in a given set of already known product category; basically the SKUs.

These are generally of variations of a given product

E.g.: Dabur Glucon-D was originally available only in a single flavor

Now it is available in many different flavors and variations:

Glucose-D, GlucoPlus C, Litchi, Cooling Energy, Lemon etc

BRAND EXTENTION:

Brand extension is using an existing brand name: generally an established one and using it with new; generally unrelated product category

 

Brand extension has its own pros and cons

• The newly launched product might get instant acceptance in the market
• It is most likely to get instant credibility
• The fan following , community, and loyal customers are more likely to get naturally and automatically driven to the new product
• If the existing distribution channel is useful in the new product also, it can hugely exploited

However,

• This would mean DILUTION OF THE BRAND
• one of the most important mantras of brand success, as stated by Al Ries and jack Trout’s 22 in immutable laws of branding states that : a good brand ought to own a ‘WORD’ in the mind of the consumer

e.g.: FedEx own the word OVERNIGHT

      Until Volkswagen did the one thing that they regret, they owned the word ‘SMALL’

• the very basic fundamental of creating a brand is to make it ‘ FAVORABLE , STRONG AND UNIQUE’ as per the Keller’s model of ‘CONSUMER BASED BRAND EQUITY’
• if not always, sometimes at least it’s better to create a unique brand name when entering a highly unrelated product category
• the worst thing that could happen is all other product categories suffering because of a negative impact on one of products,

E.g. how comfortable would you be, buying maggi ketchup after what happened to its noodles?

(If you are still okay buying the ketchup it’s because you are suffering from an emotional condition called – BRAND LOVE – which makes you predisposed to all the negativity about the brand. In fact the negativity might serve as fodder to strength your loyalty and love for the brand)

One thing to note when talking about line extensions is that it is Subjective

There are no fixed rules

1. Let’s say I am a brand called ‘dove’ which is originally into soaps

When I decide to enter shampoos it’s called brand extension.

1. A few years down the line when I am a brand known for shampoos and I decide to enter conditioners it might get a little difficult to state what the extension exactly is.
2. Now I decide to introduce a number of sub categories within each product category

E.g.: Everyday use, shine, strength of hair, colored hair, treated hair etc

This is defiantly called line extension.

The hitch is as follows

In scenario a -   my brand philosophy is defined and so is my scope.

When I introduce the shampoo FOR THE FIRST TIME

I am essentially changing the scope of the brand along with the brand meaning and brand promise

Suddenly from cleansed smooth face

I am talking about clean black hair.

Several other things change

I am no more just a SKIN or FACE CARE brand

I am into HAIR CARE too

However when you do the extension from shampoos to conditioner

The PRODUCT  might have changed; DRAMATICALLY EVEN

But the brand promise and philosophy is very much the same

I am still within the scope of HAIR CARE

Let’s suppose Dove now plans to sell hair oil

This is a little trick y because the PERCEPTION about oil under the backdrop of shampoos and conditioner is very different,

Suddenly I am talking about a transparent greasy and messy product from something white and creamy.

 This is my understanding of the topic, the veracity of this answer is dependent  on my perceptions and interpretation of the concerned subject.

This is my take on the topic; I do not mean to declare this as the ultimate reality for the subject.   Please refer the experts in the given field to get a more comprehensive understanding of the same. 

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by,

Kashmira Brahmane,

Core Researcher,

brand éclore