Extension strategies include rebranding, price discounting and seeking new markets. Rebranding is the creation of a new look and feel for an established product in order to differentiate the product from its competitors.
What’s an extension strategy
An Extension Strategy is the name given to the action a business takes when it identifies a product is close to entering the decline stage of the Product Lifecycle.
These actions aim to extend the life of a product, by keeping the product within the maturity stage, and should improve sales.
What is the main business use of an extension strategy
Brand extension strategy refers to the use of an established company’s name or brand to enter a new product class or industry.
Perhaps one of the most well-known giants of brand extension is Amazon. In 1995, Amazon began as an online bookseller.
Why is extension strategy important
Developing new products is expensive and takes time, so businesses will usually try to extend the life cycle of a product and prevent it from going into decline.
To do this, they need to find ways of keeping people interested in the product for longer, thereby increasing the number of sales.
How can brand extension strategies be improved?
- Measure Brand Equity
- Measure the potential risks
- Leverage from business core competency
- Invest in Marketing Research
- Make the brand extension a logical fit
- Create a Brand Extension Strategy
What are extension strategies in a product life cycle
An Extension Strategy is the name given to the action a business takes when it identifies a product is entering the decline stage of the Product Lifecycle.
These actions aim to extend the life of a product, by keeping the product within the maturity stage, and should improve sales.
What strategies can be adopted for establishing category extension?
- Marketing Strategy
- Motivation
- Quality Control
- Customer
- Capacity Management
- Work Life Balance
What are the two types of brand extension?
- Product extension
- Line extension
- Customer franchise extension
- Company expertise extension
- Brand distinction extension
- Transfer of component extension
- Leveraging a lifestyle extension
What is strategic extension campaigns
The Strategic Extension Campaign (SEC) methodology is needs based, demand driven and uses a problem solving approach.
It is a holistic approach that is very outcome focussed, agile and assists make any extension initiative as effective and as efficient as possible.
What are types of brand extension
Basically, a brand extension is leveraging an existing brand to promote a product in a different category.
There are various types of brand extension such as product form, companion product, expertise, customer franchise and brand image type.
What are the various factors influencing decision for brand extension
Analysis of the factors influencing brand extension may require studying five factors such as parent brand evaluation, difference in perceived quality of brand portfolio, perceived fit, consumer’s behavioral intentions and consumer’s attitude towards brand extension.
How do you evaluate brand extension?
- Identify Possible Extension Candidates
- Evaluate the Potential of the Extension Candidate
- Design Marketing Program to Launch Extension
- Evaluate Extension Success and Effects of Parent Brand Equity
What company has grown via a product line extension strategy
The most well-known example of a line extension was Coca-Cola’s release of Diet Coke in 1982.
It was used to target the growing weight- and calorie-conscious market. Diet Coke still exists today.
How do company extensions work
Extensions allow companies to route callers to various departments through a single phone number.
Dialing an extension is simple—just call the phone number, and enter the extension when prompted.
If you’re feeling overwhelmed or not sure when to enter the extension, we’re here to help!
What are the factors that justify the use of brand extension?
- Company Factor:
- Consumer Factor:
- Product Factors:
- Market Factors:
- Brand Associations:
- Channels and the Promotion of Factors:
- Competitive Environment:
Which of the following are disadvantages of brand extensions?
- Extending the brand name too far may lead to a loss of reliability, especially if the brand extension happens in an unrelated market
- If the new product is not that great, it may spell trouble for the core brand’s image
Which is the best definition of a brand extension
Let’s start with a brand extension definition: A brand extension is a marketing strategy that uses an established brand to create new products or enter a new brand category.
Brand extensions are used to build brand equity. The more a brand offers (and can do well), the more valuable the brand may become.
What is an example of a brand extension
For example, a make-up brand might introduce a product extension of brushes, blenders, or sponges.
They’re different productsbut they make sense with the original product, and give existing customers a chance to buy into the brand even more.
Which is an example of a brand extension
For example, a brand adds “Vanilla” or “Lemon” flavor to its cola line and creates a variety of products that are available for consumers.
Usually, line extension is associated with a product’s new scent, flavor, formula, color, and style in a current product line.
What are the benefits of brand extensions
Advantages of Brand Extension The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases.
An established brand name increases consumer interest and willingness to try new product having the established brand name.
The efficiency of promotional expenditure increases.
What is an example of brand extension
For example, Nike, a sports brand, creates various equipment, wears, and other sport-related products that complement each other.
We’ve also seen toothpaste companies use this type of extension for their original brand by adding toothbrushes and other oral care products as new categories.
Why is brand extension a popular marketing strategy
Why Is Brand Extension a Popular Marketing Strategy? According to Nielsen, brand extension (or brand stretching) has a likelihood of success five times that of new product launches.
Extensions also leverage equity, increase efficiency, and enjoy faster consumer adoption.
How do you create a brand extension?
- Survey your brand equity
- Set your goals
- Review your resources
- Look into wider consumer or market trends
- Research your competitors
- Engage with your existing customers
- Narrow down your options
- Get to know your new target market
What is product extension with example
A product line extension is when an existing brand launches new products in a product category they already offer products within.
For example, when a soft drink company offers a new flavor of soda.
What possible mistakes can a company make when pursuing a brand extension?
- Not defining your brand strategy first
- Starting with a cheap brand identity
- Failing to differentiate your brand
- Not connecting with the right audience
- Stretching your brand to far
- Not providing great brand experience
What are the five choices of brand strategy?
- Brand story
- Brand voice
- Brand design
- Brand values
- Brand vibe
What are the four major brand strategy decisions
Major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship and brand development.
Before going into the four branding decisions, also called brand strategy decisions, we should clarify what a brand actually is.
Are brand extensions an important brand growth strategy
A robust brand extension strategy is essential to prosper and maintain relevance in today’s hyper-competitive marketplace.
In some ways, brand extension represents the most efficient and logical way to achieve profitable brand growth, yet many companies struggle with how far to stretch.
What are the 4 branding strategies?
- Product/range extension
- Brand extension
- Co-branding
- Brand licencing
Are brand extensions good or bad
Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far.
An organization must research the product categories in which the established brand name will work.
There is a risk that the new product may generate implications that damage the image of the core/original brand.
Could brand extensions help companies to become more innovative
Brand extensions is a great marketing strategy for companies to become more innovative. Staying ahead of the game in regards to developing new business trends means staying ahead of the competition.
The marketing trend boosts business and engages the consumer.
References
https://en.wikipedia.org/wiki/Umbrella_brand
https://pirscapital.com/blog/amazon-seller-search/
https://www.oasisacademywintringham.org/uploaded/Wintringham/Curriculum/Knowledge_Organisers_(2021-2022)/Business/R064_LO3_Knowledge_Organiser.pdf
https://www.linkedin.com/pulse/20140122142620-3458678-the-no-1-reason-why-brand-extensions-fail
https://smallbusiness.chron.com/product-extension-marketing-65988.html
