The purpose of this academic paper is to identify how Sub-Branding can be used to stretch a brand effectively. Thereby, the essence of the Brand Extension should be clarified and especially Sub-Branding should be classified and represented. In addition, an overview of the Adidas Group is given. Furthermore, it is closely examined, how Sub-Branding works in practice on the basis of the brand Adidas.
First of all the focus of this academic paper lies on the conceptual fundamentals. This chapter will define and discuss the terms Brand, Brand Management and Brand Policy. Secondly, Brand Extension will be analysed in detail. Here, the types of Brand Extension – which are Category Extension and Line Extension – and its opportunities and risks will be displayed. Then the Brand Extension strategy Sub-Branding – and in particular, its objectives, requirements, as well as opportunities and risks – will be explained in detail.
Following this, a case study of the German sportswear retailer Adidas is presented to illustrate how Brand Extension and especially Sub-Branding work in practice. Thereby, this chapter is aimed at recognizing how Sub-Branding can be used to extend a brand effectively. At the beginning, the company Adidas and its Brand Portfolio will be intro-duced. Afterwards, a closer look is taken at how Sub-Branding works in practice based on the example of Adidas using several sub-brands. Following that, a critical evaluation of the company’s brand extension strategy finalizes the chapter. Finally, the knowledge gained from this academic paper will be summarized in a con-clusion.
Table of Contents
1. Introduction
1.1. Problems and Aims
1.2. Structure
2. Conceptual Fundamentals
2.1. Definition Brand
2.2. Definition Brand Management
2.3. Definition Brand Policy
3. Brand Extension
3.1. Concept of Brand Extension
3.2. Types of Brand Extensions
3.3. Opportunities of Brand Extensions
3.4. Risks of Brand Extensions
4. Brand Extension through Sub-Branding
4.1. Classification of Sub-Branding
4.2. Aims of Sub-Branding
4.3. Requirements for the Implementation of Sub-Branding
4.4. Opportunities of Sub-Branding
4.5. Risks of Sub-Branding
5. Adidas – Brand Extension in Practice
5.1. Adidas Company Profile
5.2. Adidas Brand Portfolio
5.3. Brand Extension through Sub-Branding in Practice
5.3.1.Adidas Sport Performance
5.3.2.Adidas Originals
5.3.3.Adidas Neo
5.3.4.Adidas Collaborations
5.4. Evaluation of the Brand Extension
6. Conclusion
Objectives and Topics
This academic paper examines how companies can effectively use the strategy of sub-branding as a form of brand extension to stretch their reach while maintaining brand identity. It addresses the challenge of managing brand portfolios in competitive markets, with a specific focus on the practical application of these strategies by the German sportswear giant, Adidas.
- Theoretical foundations of brand management and brand policy.
- Classification and strategic concepts of brand extension and sub-branding.
- Analysis of the opportunities and risks associated with brand stretching.
- Case study: The implementation of sub-branding strategies within the Adidas Group.
- Critical evaluation of Adidas' multi-brand portfolio and its future implications.
Excerpt from the Book
3.1. Concept of Brand Extension
Basically, a company can choose between several product-brand-options with regard to the establishment and maintenance of strategic success potentials. Thus, a company can penetrate in existing product categories either with existing or new brands. If existing trademarks are used for the launch of new products, one speaks of Brand Extension or Stretching Brand.
„Die Markenausdehnung kennzeichnet einen Managementprozess, bei welchem die Werte einer etablierten Marke für neue Produkte durch Verwendung eines gemeinsamen Namens und einer gemeinsamen Ausstattung mit dem Ziel der Übertragung positiver Imagebestandteile genutzt werden.“
Thus, Brand Extension describes the process of transferring an existing brand on new products. Therefore, it represents an important growth option for companies. Furthermore, Brand Stretching is one of the two basic strategies for launching new products and services. Unlike the New Brand Strategy, which creates a new brand for new products and services, Brand Stretching transmits an already established brand name or sign on the new product or the new service. In addition to that, Brand Stretching can be realized less expensive than building a new brand.
Summary of Chapters
1. Introduction: Outlines the problem of increasing competition in the fashion industry and presents the objective to identify how sub-branding facilitates effective brand stretching.
2. Conceptual Fundamentals: Defines core terminology including brands, brand management, and brand policy to establish a theoretical basis for the study.
3. Brand Extension: Explores the concepts, types (Line and Category Extension), and the associated risks and opportunities of brand stretching strategies.
4. Brand Extension through Sub-Branding: Classifies sub-branding within brand architecture and details its specific aims, requirements, and inherent risks.
5. Adidas – Brand Extension in Practice: Provides a comprehensive case study of the Adidas Group, analyzing its company profile, brand portfolio, and specific sub-brand implementations like Adidas Originals and Neo.
6. Conclusion: Summarizes the effectiveness of sub-branding as a growth strategy while acknowledging the risks of brand identity dilution.
Key Words
Brand Extension, Sub-Branding, Brand Management, Brand Portfolio, Adidas, Brand Architecture, Brand Stretching, Line Extension, Category Extension, Consumer Behavior, Brand Identity, Sportswear, Market Strategy, Goodwill Transfer, Brand Equity.
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the concept of Brand Extension, specifically using Sub-Branding to effectively expand a company's product range and market reach.
What are the central thematic fields covered?
The central themes include brand strategy, brand architecture, the classification of sub-branding, and the practical application of these concepts within the global sportswear industry.
What is the primary objective of this research?
The main goal is to identify how sub-branding can be used to stretch a brand effectively and to clarify the essence and classification of this strategy in a real-world corporate environment.
Which scientific method is applied?
The paper utilizes a literature-based theoretical approach followed by a detailed case study of the Adidas Group to illustrate how sub-branding works in practice.
What topics are discussed in the main part of the work?
The main part covers the conceptual definitions of brands and management, the theoretical risks and opportunities of brand extensions, and an in-depth analysis of Adidas' specific sub-brands.
Which keywords define this work?
Key terms include Brand Extension, Sub-Branding, Brand Portfolio, Adidas, Brand Architecture, and Brand Identity.
How does Adidas distinguish between its sub-brands?
Adidas segments its market by using different sub-brands like Adidas Sport Performance for athletes, Adidas Originals for lifestyle/streetwear, and Adidas Neo for younger, fashion-conscious teenagers.
What is the risk of "badwill transfer" mentioned in the paper?
Badwill transfer refers to the risk where negative consumer experiences or dissatisfaction with an extension product negatively impact the image and associations of the parent master brand.
How does Adidas use collaborations to extend its brand?
Adidas employs collaborations with designers and luxury brands like Yohji Yamamoto (Y-3) and Stella McCartney to enter high-fashion segments and strengthen its image in the style and lifestyle markets.
- Arbeit zitieren
- Lina Seil (Autor:in), 2016, Brand Extension. How Sub-Branding can be used to stretch a Brand effectively, München, GRIN Verlag, https://www.grin.com/document/342673
