As competition intensifies in the Indian context, marketers are trying to stretch, successful brands into extensions in related and unrelated product categories. The widely held belief is that the image, trust and goodwill of a brand could be extended new category in the hope that it would trigger off positive associations among the target segment.
Ries and Trout, the gurus of the positioning concept, warned marketers about brand extensions decades back. Studies in developed markets – revealed that brand extensions have been just a myth with regard to financial bottom lines. David Aaker, who is well known for his work on building brands, advocates that managers should avoid vertical extensions whenever possible, within the same product category consisting of different offerings, in one of his recent articles. Closer home, Hindustan Lever, Colgate and Proctor and Gamble are some of the top companies which have consistently used extensions within the same category, and some of these have been quite successful.
Though there is some literature on the Indian context which seems to suggest that an extension would need as much of advertising support as a new brand, some companies pursue extensions. The framework advocated by Aaker could be useful to Indian marketers (product and brand managers) who may perpetually be in a “to be” or “not to be” dilemma regarding these extensions. The distinguishing aspect of the framework is that it leverages on the cumulative equity of brands built up over a period of time, without going over- board on extensions. It prescribes optimal ways in which marketers could plan extensions.
A sub-brand is a mother brand plus an additional brand name. Lifebuoy Gold, Junior Horlicks, and Cadbury’s Perk are examples. Sub-brands are essential because –
- A company may introduce a new offering for a new segment, and hence differentiation is required with the reassurance of the mother brand (Junior Horlicks).
- A brand may become staid and may require a contemporary orientation with the tried and trusted mother brand name (Pond’s Dream flower Magic).
- A brand may enter a downscale market and the mother brand may be perceived as expensive, or the brand may want to introduce a sub-brand to compete with a number of regional brands (Reno from Sintex water tanks). Though Reno is advertised as a separate brand, it is advertised as “from the manufacturers of Sintex”.
- When a company has a string of offerings within a product category, there is a need to develop an identity for each offering (Cadbury’s Gold, Perk Picnic, 5-Star to name a few)?
- A brand may want to move to upscale markets but may find that its equity is not upmarket, though some amount of reassurance in terms of product acceptance has been achieved by the brand (Video con’s Challenge Bazooka).
- A brand may want to address different consumers within the same psychographic segment. Close- Up is a toothpaste positioned towards fun loving, vibrant youngsters. As there is brand proliferation within the category and within the sub-category of gel, there is a need to address different kinds of needs, real or perceived, in the same psychographic segment. While gel as a product variant has been accepted by youth, Close-Up Renew and Colgate Stripes address the different needs of the same segment.
- When a brand attempts to develop different kinds of imagery for a new segment, it could use a sub-brand (India- Today Plus). This may look a bit contradictory in terms of brand personality in certain situations. The mother brand in the example (India Today) has a different kind of personality as compared to the extended sub-brand (India- Today Plus). The target segment is also different. Though there is an apparent image gap, this combination could also be attempted in certain product categories. In the bike segment, Bajaj’s has a distinctively different personality from its Caliber, which was positioned at younger consumers based on life style associations. The discrepancy in the personalities should be considered based on the specific product category. A magazine is different from a bike in terms of consumer behavior. Image may play a significant role in magazines, but in a bike the imagery association is one of the many factors considered by the buyer, it is important for the respective target segment, but not sufficient.
- Sub-brands are useful when the brand, especially a leading brand introduces an innovative offering (innovative in this context is pioneering the product in a specific market). Philips created a new sub-category audio system with its Powerhouse sub-brand. Johnson and Johnson’s Kids is another example. J & J has had a strong association with baby products and a sub-brand will create a new niche in the minds of consumers (though Kids is not a pioneering brand in the category).
- When a well-known brand wants to upgrade a loyal base of consumer to a better offering, sub-brands could be useful. Surf, after establishing it in the detergent market, introduced Surf Excel and Surf Excel Power to upgrade at least a cross- section of Surf users to the updated offering. It is interesting to note that Hindustan Lever chooses a new brand and not a sub-brand for a downscale offering for the lower end to counter Nirma (Wheel).
- Sub-brands are useful to ensure that consumers are not confused especially when a company makes an entry into a new product category. BPL entered the alkaline battery market with its ExceU, and later entered the traditional battery category with its Power.
Aaker suggests that there are three kinds of relationships which a parent Brand or mother brand could have with sub-brands, and each of these relationships are useful in specific situation or branding applications. A marketer has to note that research- information on brand perception is vital before decisions on sub-brands are taken.
The Mother Brand can be an Endorser of the Sub- Brand
In this case the sub-brand is the more dominant of the two, and has a major impact on consumer decision-making. The new sub-brand is endorsed by the mother brand. The endorser approach reduces the threat of cannibalization to the mother brand as the sub-brand does not make a dent into the share of the mother brand. The endorsor strategy is also useful for a brand to enter into lower-end markets (downward stretch). Junior Horlicks is a good example for the endorser strategy. Horlicks the mother brand has equity among consumers and this has been developed over a period of time. Horlicks is perceived as a nutritious health drink for children and adults. Decades back it was probably perceived as the drink for convalescence. Junior is a sub-brand and this is targeted towards children in the group of 1 to 3 years. Horlicks the mother brand provides the reassurance (endorsement) to the mother population, which is the buyer segment. The endorser route of creating sub brands also minimizes the damage to the image of the mother brand.
In the second category of co-driver relationships, the mother brand creates the familiar association, and the sub brand develops an imagery which appeals to the target segment. The imagery could be created through marketing communication (a vital factor) and packaging to a certain extent. Lifebuoy Gold is a good example where the sub-brand creates a persona which is in tune with the target segment of young, college girls. The irreverent modern young and fun-loving personality of this sub brand is well supported by the familiar. Lifebuoy mother brand, and the gentle white-cum-pink packaging differentiate the sub- brand from the mother brand. The India- Today Plus example probably attempts this route. Lifebuoy Gold maintains its core proposition “hard on germs” while making use of the mother brand as a co-driver. Mysore Sandal gold has been launched recently, extending the mother brand Mysore Sandal.
The sub brand could create a distinctive persona for itself, making use of the familiar mother brand. Colgate Total fits in as an example in this kind of an approach. The Colgate mother brand still has a major hold over the toothpaste market, and this is a good enough reason for consumers to consider the brand. Colgate Total has developed a persona using a well known celebrity and hence the Total sub-brand is a co-driver.
Index has attempted this in its Power cream aimed at young urban women. While the endorser approach may be more appropriate for durables, the cod river appears to be appropriate for consumables which depends more on the brand personality for differentiation. Packaged tea as reflected from market studies is an image driven category, and brands are using the co-driver approach to create images around brands
The driver descriptor Relationship
In this approach, the mother brand is the driver providing the basic motivation for consumers to buy the brand, and the sub- brand provides the description of the product as a descriptor. The description should not only be developed by marketing communication; it has also to be emphasized in the physical appearance of the product. Dettol Liquid Soap and Parachutte Lite (the lighter coconut oil for grooming hair) could be examples. In the durables category, the Maruti brand fits into this approach with its Esteem and Zen variants. It is also, interesting to note that Maruti 1000 which was very similar to
Too Many Sub Brands could be Counter Productive
While sub-brands offer an alternative to marketers for harnessing the strength of the mother brand, Al Ries, one of the gurus of positioning, warns market, that too many sub- brands may weaken the mother brand, leading to an erosion of market share.
Examples
- In 1988, American Express had 27 per cent of the market share of credit cards. It started introducing a number of sub brands. Senior Student Optima, Optima Rewards plus gold. True Grace, Optima Golf, Purchasing, Corporate Executive, Miles. Its market share in 1997 was 18 per cent.
- Levi’s Strauss had about 27 different cuts of jeans with a number of Sub brands. The last 7 to 8 years, the market share has gone down from 31 to 19 per cent.
- Chevrolet introduced a number of sub-brands-Caprice, Camaro, Cava1ier Corisca-Beretta, Lumina, Malibu, Metro, Monte Carlo and Prizm. Currently the brand does not have the same hold as it used to have over the market.
- Sunsilk, which promoted sub-brands like Fruitamins, Nutracare and Black, a year back, is currently promoting only the mother brand with its variants
- Brand managers of Titan, Surf, Close-Up, Colgate, Vicks and Maruti may already be working on such challenges posed by sub-brands.
Let’s start with the fundamentals and imagine why names matter. Why does your name matter? Well, your name represents who you are for people that know you, or at least know of you. As people get to know you, or hear about you, they associate certain emotions and images with the collection of phonetic sounds that make up your name. That’s why your name could mean different things to different people – and probably does. Your name is also one of the first things you tell strangers if you have any interest in interacting with them.
Moreover, because how we think is so influenced by the norms of the society we live in, how our names sound, even how they look written, carry with them a certain feeling before we, the people our names are supposed to represent, even enter the picture. Yes, this means we are often pre-judged by the associations our names conjure up even before someone has met us.
Companies are also pre-judged. Think back to the first moment you heard the name ‘Verizon’. Did you think about it at all? If so, what was your immediate thought? You don’t know what the company looks like. You don’t know whom the company hangs out with. All you have to go on is the company name, those three syllables chosen for greatness out of 8,500 groupings of sounds.
