A brand’s equity consists of the key elements that drive demand for brand products and services. This includes some aspects of how customers perceive and experience the brand—its image—but not necessarily all aspects. It is critical to identify the key equity elements and to ensure that the line-extension strategy is appropriately designed to leverage, protect, and reinforce the brand equity. Consistency with brand image may not be enough; consistency with the brand equity is required.
If the line-extension image jars with any of the brand equity elements, it will erode the entire line. For example, a major producer and marketer of fresh premium branded meats developed a series of processed-meat line extensions. The company hoped to leverage its “high quality” image, which it believed to be its essential brand equity. Unfortunately, its equity was more strongly related with “freshness”—an image at odds with processed food. The company ultimately withdrew the product-line extensions. But had managers measured the profitability of the line extensions alone, they would have continued to market the products with potentially disastrous consequences for the core brand product lines.
A brand’s equity consists of the key elements that drive demand for brand products and services. This includes some aspects of how customers perceive and experience the brand—its image—but not necessarily all aspects. It is critical to identify the key equity elements and to ensure that the line-extension strategy is appropriately designed to leverage, protect, and reinforce the brand equity. Consistency with brand image may not be enough; consistency with the brand equity is required.If the line-extension image jars with any of the brand equity elements, it will erode the entire line. For example, a major producer and marketer of fresh premium branded meats developed a series of processed-meat line extensions. The company hoped to leverage its “high quality” image, which it believed to be its essential brand equity. Unfortunately, its equity was more strongly related with “freshness”—an image at odds with processed food. The company ultimately withdrew the product-line extensions. But had managers measured the profitability of the line extensions alone, they would have continued to market the products with potentially disastrous consequences for the core brand product lines.
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