When established brands introduce new products, they need to ensure they maintain their brand image and this can be difficult to do.

A line extension involves the use of the same brand name within the same product line and increases the depth of a product line. Usually, trying something which is a variation of a product consumers know and trust is less risky than trying an entirely new product. Even then, some line extensions have been unsuccessful.

An example of this would be PepsiCo’s ‘Pepsi AM’ released in 1989, when there seemed to be a decline in coffee sales. Attempting to capture the market for morning beverages, PepsiCo introduced this soft drink with 28 per cent more caffeine per ounce than the original Pepsi. However, the consumer response was mostly negative as the idea of soda with breakfast was not appealing, and it was discontinued in 1990. I think PepsiCo had the wrong target market here, expecting coffee-drinkers to break away from a traditional breakfast.

Pepsi AM

A brand extension involves the use of the same brand name in a different product line. This can be risky because if the new product does not live up to consumers’ expectations of a particular brand, it can adversely affect their views of the brand in general. At the same time, a positive reaction could lead to increased sales and profits.

An example of this would be Duracell’s Powermat, released in 2013. This provides wireless charging for mobile devices by placing your phone in a specific phone case and on the powermat, as well as a back-up portable battery for emergencies. The company recognized a need for on-the-go chargers. Thanks to its strong reputation for high quality batteries, the company managed to use its core strengths to create a successful product in a different category.

Duracell Powermat

http://www.prweb.com/releases/2013/2/prweb10389667.htm

http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/#!slide=982932

Many leading companies are currently using shorter commercials to advertise their products, with 15 seconds being the new 30. It was challenging enough to get consumers informed about a product and persuaded to buy it in 30 seconds, now marketers are increasingly attempting to achieve this in about half the time. This includes companies in a variety of industries such as Kraft, Pepsi, Old Spice and Samsung.

One reason for this is the fact that as consumers, our attention spans are decreasing. When watching videos on sites like Youtube, commercials can now be skipped so viewers are paying less attention to ‘long’ TV commercials. At the same time, longer commercials mean consumers are exposed to the brand for a longer time and are sometimes more memorable.

Also, the more relevant reason to do this would be the current economic conditions leading to lower advertising budgets. If the same message can be conveyed to consumers in less time, the adverts could even be aired more frequently.

According the market research company Kantar, over half the commercials run by packaged-goods companies and 60 percent of fast-food ads are 15 seconds. Thanks to brand recognition, by showing a picture of the product offered and its price, consumers instantly get the message. Although this may be the case for established well-known brands, it is often more difficult for less-known brands. Newer businesses may still need to create awareness among consumers about what they are offering, in which case longer adverts may be more appropriate.

I think in today’s world as we are constantly exposed to such a vast number of products and services, it’s understandable that we get distracted easily and so shorter ads seem like a good idea as long as they provide all the information necessary.

http://articles.economictimes.indiatimes.com/2013-09-18/news/42183297_1_scarecrow-communications-ads-quikr

http://www.nhregister.com/general-news/20101028/15-seconds-of-fame-new-tv-ads-snappy-short-cost-half-as-much