Brand extension can be
a potent field for expansion of a company's marketing.
For example, Coca Cola, Land Rover and Lara Croft are brands
which have a powerful appeal which goes far beyond their core
business. Enthusiasm for brands such as these can therefore
exist not only in diverse product or service categories but
also in territories where the core business may not yet have
significant sales.
The development of a carefully controlled brand extension
programme can help to meet this demand. It can also support
the brand and promote sales by the core business, providing
that the collateral products or services forming part of the
extension programme adhere to the core brand values.
A brand extension programme can be developed either by direct
investment, as a joint venture with one or more other investors,
or through carefully controlled licensing. However it is developed,
such a programme requires as a prerequisite that rights to
the brand be obtained by trade mark registration for the territories
and products/services concerned.
Without such registration, there may not be effective legal
rights to exploit and it will be difficult if not impossible
to protect the revenue generated against piracy. Copyright
can be useful as well but it can only protect logos or designs
and not names. It also only protects against copying and not
coincidental similarity.
A powerful brand may generate spurious goods or services,
both in the core business and brand extension categories,
and indeed usually does. Piracy of this kind can threaten
both revenue and the integrity of the brand itself.
Trade mark registration for the relevant territories and
goods/services is the only effective weapon against piracy.
Investors and licensees also require this protection to provide
a weapon against spurious competition and safeguard revenue.
Indeed, many people will not become investors or licensees
unless they can see that the necessary protective rights have
been obtained by trade mark registration or receive warranties
to that effect.
Trade mark registration is thus an enabler of a brand extension
programme as well as a safeguard.
To maintain valid registration of a trade mark for the goods
or services for which it is registered, sales have to be made
under the mark in the territory concerned. The sale of genuine
goods or services in collateral markets thus helps in maintaining
effective trade mark rights in this area. It also assists
in providing surveillance against piracy over a wider area.
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