“Success and failure of brand extension greatly depends on the positioning of the product.”

McKinesy have identified three steps, which can help ensure success in positioning the product.

1. Ensure Relevance to Customer’s Frame of Reference.

One requires to be fully aware of the frame of reference with which customer views the product, and understand the combination of customer’s attitudes and the situations in which the brand is used, to obtain the most powerful customer insights. Generally marketers look at the product, as they want to launch it, and not what consumers are expecting. This gap leads to non-acceptance of the product.

2. Secure the Customer’s Permission for the Positioning

It is paramount to obtain the permission of consumers since it helps in building the bridge that can carry customers from where they perceive the brand to be today to where one

wants to take it into the future. Bridges are often best built when they leverage the unique emotional benefits of the brand’s equity that are relevant to the customers.

For example

Nirma is widely perceived as a washing powder. If they had come out with another related product, they would have been more successful than in their launch of Nirma bathing soap. Nirma did not think getting customer’s preference here and launched the bathing soap without seeking their permission. Result was that the campaign was a failure and finally they had to change the name from Nirma to Nima.

3.Deliver on the Brand’s new Promise

It is easy to say that “do what you say”, but very difficult to implement. However if this adage is not taken care of, it is harmful not only for the extended product but also for the parent product. It tarnishes the image and then great effort is required to regain the lost status. This is particularly true in service industries, given the need for tremendous organisational change, and industries that require long lead times for organisational or infrastructure changes.