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 example of brand extension
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 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 a brand name extension
Brand name extension is a term used to describe the reuse of a well-known proprietary name to introduce a new product that may contain an active ingredient different from the active ingredient in the original product.
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 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 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:
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 is brand 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 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 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 is the difference between sub brand and brand extension
Sub brands can also weaken the main brand through creating confusion and blurring its identity.
Brand extensions allow new products or business diversification to capitalise upon the strengths of established brands.
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.
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 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.
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 the difference between brand line extension and brand category extension explain with proper examples
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.
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 are pros and cons of brand extension?
- Easy Market Entry
- It Increases The Chance Of Product Acceptance
- It Saves Costs
- Improve Brand Image
- It Provides Premium Pricing Opportunity
- It Increases Profitability
What are the challenges of brand extension?
- 1) Identifying Unmet Consumer Needs
- 2) Uninspiring Product/Service Solution
- 3) Lack of Relevance
What should be done by marketers for 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
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.
What are the disadvantages of brand extensions?
- 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
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.
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 are some examples of product extensions?
- Colgate with Hemp Seed Oil
- Coca-Cola Cinnamon
- Lux White Impress
- Honda Civic Si
- Hellmann’s Mayonaise with Olive Oil
- Mr
- Nissan Leaf
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 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.
How do you start 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
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.
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.
Sources
https://blog.hubspot.com/marketing/brand-portfolio
https://www.shopify.com/encyclopedia/brand-equity
https://en.wikipedia.org/wiki/Brand_extension
https://www.fullsurge.com/blog/why-so-many-brand-extensions-fail
