B.E.D: ​Brand Extensions & Diversification

A Forward Thinking Strategy. Survival of the fittest.

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The common theme that runs across my discussions with alcobev industry leaders is usually around the challenges we face which come with our sector and discussions highlight the limited scope of change.  I draw their attention to yet another impending challenge: the urgency of considering brand extensions to strengthen brand equity and brand valuations. Consider it a strategic initiative and build competitive advantages of SOM, SOV, and Trials. The market will reward the fittest. 

Why Brands Extensions?: "Let the status quo carry"

The initial response ranges from “Arreh, we have a lot on our plate.” Our teams are so busy managing operations. “How will we manage? What is the process? “Let the status quo carry.” However, the silver lining is from marketing leaders, brand managers, and legal teams who have reached out to engage with us on the science and structure for building brand extensions and diversifying their brands.  For those who have yet to consider, I am sharing the challenges that they need to consider and encouraging them to engage with us through our B.E.D training programs

Rules & Notifications on Brand Extensions in India:

The  CTNR Act 1995 is supported by CBFC, & CCPA, and ASCI guidelines and over the years these have changed however the qualification of brand extensions vs surrogates was defined 3 decades ago and remains constant.

Restricted advertising poses several challenges for businesses, especially in industries with strict regulations (e.g. healthcare, finance, alcohol, gambling, tobacco and cannabis) or on platforms with strict ad policies (e.g., social media restrictions on political ads).

1. Brand Awareness and Growth Limitations

• Inability to Build Brand Trust. Brands may struggle to establish credibility with potential customers.

• Dependency on Word-of-Mouth or Organic Growth. Long tail.

• Competitive Disadvantage vis – a -vis legacy brands.

2. Limited Reach and Audience Targeting

•  Reduced Customer Awareness

•  Difficulty in Targeting the Right Audience: Restrictions on data collection and ad personalisation (such as GDPR or Apple’s App Tracking Transparency) limit targeted marketing strategies.

3. Higher Marketing Costs

   
   

• More Expensive Alternatives

• Inefficient Spending

• Compliance Costs

4. Compliance and Legal Risks

   
   

• Vague or Changing Regulations: Advertising laws vary by region and frequently change, making compliance difficult.

• Risk of Fines or Bans: Non-compliance can lead to penalties, ad removals, or account suspensions on platforms.

• Complex Approval Processes: Some industries require ads to go through lengthy regulatory approvals, delaying campaigns.

To explore the topic of brand extensions, reach out to us for a curated  ‘workshop’ led training program B.E.D for marketing, brands and consumer interfacing teams.Our consulting services include brand extensions (planning and executing), consumer research,  advocacy & public relations. 

Nita Kapoor , Co-Founder - Integrated Insights Consulting

Email -  nita@integratedinsights.in