Brand Decisions 193
and shredded wheat are now in the public domain and are available for any manufac-
turer to use.
Given the rapid growth of the global marketplace, successful companies and e-
businesses are careful to choose brand names that are meaningful worldwide and pro-
nounceable in other languages. One thing Compaq liked about the name Presario for
its line of home computers is that it conjures up similar meanings in various Latin-
influenced languages. In French, Spanish, Latin, or Portuguese, Presario has the
same, or similar, association that it does in English: It suggests an “Impresario,” the
magical master of the whirl and fantasy of a stage production.
Brand Strategy Decision
A company has five choices when it comes to brand strategy. The company can intro-
duceline extensions(existing brand name extended to new sizes or flavors in the exist-
ing product category), brand extensions(brand names extended to new-product cate-
gories),multibrands(new brand names introduced in the same product category), new
brands(new brand name for a new category product), and co-brands(brands bearing
two or more well-known brand names).
Line Extensions Line extensions introduce additional items in the same product cat-
egory under the same brand name, such as new flavors, forms, colors, added ingredi-
ents, and package sizes. Dannon introduced several Dannon yogurt line extensions,
including fat-free “light” yogurt and dessert flavors such as “mint chocolate cream
pie.” The vast majority of new products are actually line extensions.
Line extension involves risks and has provoked heated debate among marketing
professionals.^14 On the downside, extensions may lead to the brand name losing its
specific meaning; Ries and Trout call this the “line-extension trap.”^15 A consumer ask-
ing for a Coke in the past would receive a 6.5-ounce bottle. Today the seller will have
to ask: New, Classic, or Cherry Coke? Regular or diet? With or without caffeine? Bottle
or can? Sometimes the original brand identity is so strong that its line extensions serve
only to confuse and do not sell enough to cover development and promotion costs.
For example, A-1 poultry sauce flopped because people identify A-1 with beef.
However, the success of a new line extension sometimes hurts other items in the
line. Although Fig Newton’s cousins Cranberry Newtons, Blueberry Newtons, and
Apple Newtons all sell well for Nabisco, the original Fig Newton now seems like just
another flavor. A line extension works best when it takes sales away from rivals, not
when it deflates or cannibalizes the company’s other items.
On the upside, line extensions have a much higher chance of survival than do
brand-new products. In fact, some marketing executives defend line extensions as the
best way to build a business. Kimberly-Clark’s Kleenex unit has had great success with
line extensions. “We try to get facial tissue in every room of the home,” says one
Kimberly-Clark executive. “If it is there, it will get used.” This philosophy led to 20 vari-
eties of Kleenex facial tissues, including a line packaged for children.
Brand ExtensionsA company may use its existing brand name to launch new prod-
ucts in other categories. Autobytel.com, a pioneer of Internet-based car sales, used
brand extensions to introduce automotive financing, insurance, and car repairs on its
Web site. A recent trend in corporate brand-building is corporations licensing their
names to manufacturers of a wide range of products—from bedding to shoes. Harley-
Davidson, for example, uses licensing to reach audiences that are not part of its core
market, with branded armchairs for women and branded a Barbie doll for the future
generation of Harley purchasers.^16