Brand Extension and Brand Cannibalisation

Sibling Rivalry is a common phenomenon known to one and all. And it is irrespective of the material that they fight for. We are sure that Dhirubhai Ambani might not have brought in both the sons in the same business so that one day the group splits. And we do have many such examples.

What makes this happen? And why actually this happens?

Like the extension of the family in Business, when brand extensions are executed; brand sibling rivalry is born.

We may come across various stories in magazines and journals, quoting the success of brand extensions. J Stories are stories only when things go well…….success stories. But we do not come across the statistics which may guide us about the percentage success in brand extensions.

Brand extension is strongly related to the consumer feelings and emotions. One may find more brand extensions being succeeded without a clear thought as to why be the extension needed. This random phenomenon has given birth to the thought that brand extension is diversification to break the monotony of existing brand and business. Upon which its success is a thumbs up.

But, we are playing with it. We need to investigate brands that have suffered.

We need to look at the siblings, who, after falling apart, have messed the group.

There are two possibilities;

• One brand kills the other brand
• Both the brands are messed

When one brand is not appropriately introduced as a part of brand extension, it either fails or eats up the existing brands business. BRAND CANNIBALIZATION.

No matter what ever may be the consumer emotions, brand extension is a very powerful brand strategy and it has to be thoroughly thought of before springing it into action.

Following are the few points that need to be considered before brand extension strategy;

• The PLC stage of the nearest brand of the same group
• New brand offerings and differentiators from the nearest brand
• Identification of separate market or clear subset and Key energizers
• Right positioning of the two brands

When a brand takes this initiative to launch a new product in the same category, it has to be a thoughtful and well strategized process.

It should not be with the aim of increasing sales

The chief objective of BRAND EXTENSION should be quite strong and unbiased; avoiding BRAND CANNIBALIZATION.