A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product.
Some example of brand extension are: Apple: from personal computers into MP3 players. Callaway: from golf clubs into footwear, apparel and golf accessories.
What is brand extension with 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.
What is brand extension and its types
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.
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 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 is the brand extension idea
Brand extension is a marketing strategy that involves a company using its well-established brand name or image to introduce a new product or product categories to its customer base.
This strategy works best when the new product category is related to its parent category and is something consumers and customers want.
What are two types of brand extensions?
- Product extension
- Line extension
- Customer franchise extension
- Company expertise extension
- Brand distinction extension
- Transfer of component extension
- Leveraging a lifestyle extension
What is brand extension 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.
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.
How do you develop 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 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 are the brand extension strategies
A brand extension is when a company uses one of its established brand names on a new product or new product category.
It’s sometimes known as brand stretching. The strategy behind a brand extension is to use the company’s already established brand equity to help it launch its newest product.
What is an accurate description of brand extension and co branding
Brand extension: This involves an existing brand extending to a new category with the same name.
Co-branding: This involves an alliance wherein two brands are combined in a single product.
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 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 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 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
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 is an example of a failed brand extension
Colgate Kitchen Entrees. The idea was that after a delightful Colgate meal, you could then brush your teeth afterwards using, yes, Colgate toothpaste.
This brand extension was such a disaster that it never left US soil. The problem Colgate is not a brand name one would associate with a hot meal after work.
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
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 are the challenges of brand extension?
- 1) Identifying Unmet Consumer Needs
- 2) Uninspiring Product/Service Solution
- 3) Lack of Relevance
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.
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.
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.
Why is brand extension a popular marketing strategy quizlet
Why is brand extension a popular marketing strategy? It allows the firm to spend less on creating brand awareness and associations.
Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product.
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.
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.
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.
What is image related brand extension
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.
The new product is called a spin-off.
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.
References
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.678.85&rep=rep1&type=pdf
https://www.bbc.co.uk/bitesize/guides/z76ggwx/revision/3
https://www.prophet.com/2012/04/83-ten-routes-to-a-successful-brand-extension/
