Successful brand extensions allow companies to diversify their offerings and increase market share. They can give the company a competitive advantage over its rivals that don’t offer similar products.
The existing brand serves as an effective and inexpensive marketing tool for the new product.
How do you build a successful brand extension?
- 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 the opportunities for a brand extension?
- It makes acceptance of new product easy
- There are feedback benefits to the parent brand and the organization
What is a brand extension in marketing
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 unsuccessful 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 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 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 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.
Why is brand extension important
Brand extensions can also benefit the parent brand by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent brand’s relevance in its existing category.
Extensions can also help to establish a brand’s position in new categories.
What is an example of brand extension strategy
Definition brand extension strategy Perhaps one of the most well-known giants of brand extension is Amazon.
In 1995, Amazon began as an online bookseller. Since then, the brand has extended into everything from music, grocery delivery, consumer goods, movies and more.
What are the challenges of brand extension?
- 1) Identifying Unmet Consumer Needs
- 2) Uninspiring Product/Service Solution
- 3) Lack of Relevance
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.
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 are the functions of brand extension
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.
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.
Is brand extension the same as product extension
Brand extension is the use of the same brand name to launch a new product in a different product line.
On the other hand, Line extension is the use of the same brand to launch and market a new product in the same product line.
Line extension only represents an increase in a product’s line’s depth.
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 brand extension types with examples?
- Product extension
- Line extension
- Customer franchise extension
- Company expertise extension
- Brand distinction extension
- Transfer of component extension
- Leveraging a lifestyle extension
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.
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 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.
What do you mean by product extension
What is a product line extension? Line extensions refers to the process of expanding an existing product line.
This is when a company with an established brand introduces additional items in a product category.
The company uses the value of the existing product to market and introduce new choices to consumers.
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.
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
What is a product 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’s the difference between a product line and brand extension
Product Line Extension vs Brand Extension A product line extension refers to adding new features to products in a particular category.
On the other hand, brand extension is using an established brand name in new product categories.
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.
What is Apple 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 Disney a brand extension
Another great example of brand positioning is Disney. With movies, T.V. shows, theme parks, coloring books, and baby clothing (to name only five of its many products), Disney has learned to wield logic and leverage in a masterful way.
One successful brand extension is the Disney English-language training center.
What makes a brand successful
Have a distinctive personality that is appropriate for your target audience. Be consistent in its messaging and design, reinforcing the position, promise and personality at each touch point.
Demonstrate the value that your company provides for the customer, and how that value is created.
What is new product extension
Product line extension (also known as expansion) involves a business adding a new product to one of its pre-existing product lines.
References
https://accountlearning.com/types-of-brand-extensions/
https://stories.starbucks.com/uploads/2019/01/AboutUs-CompanyProfile-Q3-2013-9.18.13-1.pdf
https://www.oasisacademywintringham.org/uploaded/Wintringham/Curriculum/Knowledge_Organisers_(2021-2022)/Business/R064_LO3_Knowledge_Organiser.pdf
