Brand extension is the introduction of a new product that relies on the name and reputation of an established product.
Brand extension works when the original and new products share a common quality or characteristic that the consumer can immediately identify.
What is brand extension example
Brand extension can be as obvious as offering the original product in a new form.
For example, the Boston Market restaurant chain launched a line of frozen dinners under its own name, offering similar fare.
Another form of brand extension combines two well-known products.
Which is the best definition of a brand extension
Brand extension is the strategy of launching a new product into the marketplace under a well-established brand name that is already recognized in a different product category.
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.
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.
What is brand extension strategies
Brand extension is a strategy where a company creates a new product category under its well-known brand name.
It helps launch new products easily, obtain higher profit, reduce costs necessary to launch a new business, and meet customers’ needs and wants.
What are the advantages of brand extension
Advantages of Brand Extension It increases brand image. 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.
What are the 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 the difference between brand extension and brand stretching
Brand stretching involves introducing a new product into the market that is similar to an existing product in terms of functional benefits, but different in terms of price or branding.
Brand extension involves introducing a new product that has little or no relationship with the original brand and its customers.
What makes a good brand extension
Make the brand extension a logical fit The new product must be a logical fit to the brand, compatible, expected and follow the current brand story.
The link between the new product and the parent brand should be easily tracked.
The biggest brand extension pitfalls fall into this category.
What are the benefits of brand extension?
- It increases brand image
- The risk perceived by the customers reduces
- The likelihood of gaining distribution and trial increases
- The efficiency of promotional expenditure increases
- Cost of developing new brand is saved
- Consumers can now seek for a variety
What is product line extension marketing
Product line extension (also known as expansion) involves a business adding a new product to one of its pre-existing product lines.
What is the difference between brand and line extension
Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes.
This is as opposed to brand extension which is a new product in a totally different product category.
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 components of brand extension
A comprehensive literature review identifies six elements which are crucial to the success of brand extension.
These elements are Parent Brand Image, Parent Brand Fit, Parent Brand Strength, Marketing Support, Quality of Parent Brand and Parent Brand Consumer Experience.
How do consumers evaluate brand extensions
1. Consumers’ evaluations of brand extensions are determined primarily by the quality of the parent brand and the fit between the original and extension product categories.
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 do you mean by product extension
A product line extension is when a company creates a new product in the same product line of an existing brand.
The strategy for an extension could be a different color or size, and it may have different ingredients or come in different flavors.
What is the first step in successfully introducing a brand extension
Measure Brand Equity Thus, the first step is to have a Brand Equity measurement in place in order to track possible future impacts.
What are the disadvantages of brand extension?
- Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far
- There is a risk that the new product may generate implications that damage the image of the core/original brand
How do you identify brand extension opportunities
Consumer factors when identifying potential brand extensions, marketers should consider parent brand association – especially as they related to the brand positioning and core benefits – and product categories that might seem to fit with that brand image in the minds of consumers.
What is the difference between brand line extension and brand category extension explain with proper examples
Brand Extension Vs. For example, Coca-Cola releasing its ‘Diet Coke’ variant was a line extension where the product didn’t release in a totally new category.
Whereas brand extension is where the new products are launched under the same brand but in new territories or markets.
What is brand stretching extension give an example
Brand stretch: a launch of a new product into a completely different and unrelated category.
The 007 fragrance is a good example of this. Brand extension: the launch of a new or modified product into the broader market category in which the brand operates (e.g., Stella Artois Cidre) Image: biggsreps.com.
What is multi brand extension
Multi-Brand Approach A variation of the product line extension approach is to run a multiple brand strategy within the same market.
This means having more than one brand competing in the same product category. Large companies usually employ this strategy to crowd the market and gain a sizeable competitive advantage.
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 does Apple use brand extension
Apple (AAPL) is an example of a company that has a history of effectively using a brand extension strategy to propel growth.
Starting with its popular Mac computers, the company has leveraged its brand to sell products in new categories, as can be seen with the iPod, the iPad, and the iPhone.
Is advertising an extension strategy
Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales.
Examples of the techniques are: Advertising – try to gain a new audience or remind the current audience.
Why do brand extensions fail
When brand extensions fail, it’s usually because companies try to borrow or milk their brands, and/or they simply do not pay enough attention to creating sufficient new consumer benefits.
What is vertical brand extension
Vertical extensions: Vertical extension means introducing related brand in the same product category in either of two directions, i.e., upscale extension, where a new product with higher price and quality characteristics, than the original, is introduced; or downscale extension, where a new product with lower quality
Which of the following are disadvantages of brand extension?
- 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
How do you extend a brand
The easiest way to extend a brand is to add branded products within the existing product line.
The brand has already gained recognition and loyalty within a specific product line, so it makes sense to add complimentary products.
For example, a shampoo brand could add a conditioner product, hairspray product, and so on.
Sources
https://www.shopify.com/blog/brand-strategy
https://www.feedough.com/brand-extension/
https://www.toprightpartners.com/insights/6-vital-steps-brand-extension-success/
https://www.xara.com/branding-hub/four-branding-strategies/
https://anthembranding.com/blog/what-is-brand-extension-and-what-can-it-mean-for-your-business
