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Brand extension strategy
Strength & Weakness
The brand problem
The brand challenge
Primary (manufacturing industry) Secondary (publishing industry)
(car, van, motorcycle, airplane…) Travel assistant services
(travel guides, road maps, online mapping)
Get more profit
Enter new product categories more easily, instant recognition & faster acceptance, quickly gain market share
Constitute brand territory for further brand extension
Strengthen brand image
Save high advertising cost usually required to familiarize consumer with a new brand
Difficult to manage if the new launch is in a very different market from the original brand & new target customers don’t value the brand’s associations ?Brand extension may easily fail
In case of failure ?harm consumer attitudes towards the other products carrying the same brand name
Lose brand name’s special positioning in the customer’s mind
Confuse the image of the main brand
Dilution of brand image
The world second largest tires manufacturing – over 120 years history
Strong brand image
Easily recognized by symbolic differentiation
Trouble with the brand extension
The brand extension is facing with publishing in accurate information
Effect on the brand’s central values (safety, performance) ? Reduce the brand image
Competition with GaultMillau, direct competitor in the brand extension market
How to strengthen the brand image in the problem of the brand extension situation?
Product innovation and differentiation
Strengthen the brand extension: adjust to fit the brand’s central value:
Make sure all published info is correct
Partnership with mobile network/social network to bring Michelin’s road maps and travel guides to mobile phones and online community...
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