Question

Brand extension and flanker branding are common strategies for large corporations. Access the following websites. Identify the various brand extension strategies and flanker brands used by each company.

c. General Mills (www.generalmills.com)

Answer 1

Brandextensions are one of the most popular strategies for the introduction of a new product, used by companies that already have well‐established strong brands in the market. Brand extensions utilize the well‐established brand name for a new‐product offering when a company introduces a new product either in a totally different product category or in the same product category for a new market segment. In contrast, flanker brands (also called fighting brands) are the newcomers launched in the market by a company with an established brand in the same product category. They are designed to fight a competitor with a value offer or unique position, shielding the flagship brand from diluting its brand premium.

The role and business objectives of brand extensions are very different from those of flanker brands. Each of them is rooted in a different branding strategy in a company's brand architecture and portfolio. However, they are equally important in terms of protecting the brand equity that the company has achieved by bringing out greater customer share on the condition that they are well designed and implemented.

Brand extension strategies used by General Mills:

Wheaties Fuel and Chocolate Cheerios

Flanker Brands used by General Mills:

General Mills markets both Gold Medal and Robin Hood brand flours. Gold Medal serves as a premium product and commands a premium price from consumers who value quality. However, Robin Hood offers a lower-priced product with a slightly lower level of quality for those who are more heavily influenced by the price of products within a category.