Definition brand 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.
What is a 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.
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 is an example of extension strategy
For example, a business could try introducing a different sized version of the product.
Increasing marketing activity – Running new advertising campaigns and sales promotions can attract new customers, remind previous customers that the product still exists and encourage existing customers to buy more of the product.
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 are extension strategies
An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline.
Extension strategies include rebranding, price discounting and seeking new markets.
Why is brand extension 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.
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 companies use extension strategies?
- Apple: from personal computers into MP3 players
- Callaway: from golf clubs into footwear, apparel and golf accessories
- Dyson: from vacuum cleaners into desk lamps
- Starbucks: coffee-based beverages into energy drinks
- Mailchimp: email marketing to Facebook ads
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.
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 are the challenges of brand extension?
- 1) Identifying Unmet Consumer Needs
- 2) Uninspiring Product/Service Solution
- 3) Lack of Relevance
What are the opportunities for 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 is brand extension provide an example of brand extension name the brand and the product 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 is line extension approach in branding strategy
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.
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.
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 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 are the 4 extension strategies
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 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.
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.
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 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 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.
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 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.
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 new brand strategy
The new brand strategy means developing a new product line and a brand that would be associated with it.
The product line needs to be outside the scope of the current brand offering, that’s why it requires a new brand.
How do you create brand extensions?
- 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
Sources
https://www.investopedia.com/terms/b/brandequity.asp
https://blog.taboola.com/increase-brand-awareness-today/
https://en.wikipedia.org/wiki/Brand_extension
https://cgifurniture.com/brand-stretch-vs-brand-extension/
