What is a brand extension with example?

What is a brand extension with example?

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 and its types?

A brand extension, or brand stretching, is a marketing strategy that uses an established brand name on a new product in a related or unrelated category. Releasing an item under a well-known company brand allows the launch to receive support from existing loyal customers.

Why do we need 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 is line extension and brand 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.

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 brand extension PPT?

6. BRAND EXTENSIONS  A Brand Extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3)  When a new brand is combined with an existing brand (approach 3), the brand extension can also be called a sub-brand.

How do you create a brand extension?

Methods of brand extension include:

1. Re-positioning same product in a different form.
2. Re-positioning different product in the same form.
3. New distributor, franchise or relationships.
4. Brand name or design change.
5. Price changes.
6. Renewed features such as distinctive change like taste, ingredients, components.

How do you do brand extensions?

To increase the probability of success, any brand should follow a few best practices.

1. Measure Brand Equity.
2. Measure the potential risks.
3. Leverage from business core competency.
4. Invest in Marketing Research.
5. Make the brand extension a logical fit.
6. Create a Brand Extension Strategy.

What is brand extension PDF?

Brand extensions are the new products introduced under an existing brand name or a. new entrant in a different category from the parent brand (Aaker and Keller, 1990).

What is a brand line?

Brand line is a marketing term used to describe all the products sold under a single brand name. New flavors, package sizes, nutritional content, or products containing special additives are included in this definition. More than half of all new products introduced each year are brand line extensions.

When would you use a brand extension?

When a brand is successful and has achieved a significant level of equity and value in terms of owning a place in consumers’ minds, companies often try to leverage that success by extending the brand.

Are brand extensions good or bad?

A strong brand name gives the consumers recall and positive feedback which is good when marketers consider using the brand extension strategy. Brand extension stretches the line or the category of the product. A good fit and experience with the parent brand can make the brand extension a success.

What are some examples of brand extensions?

Brand extension refers to the expansion of the brand itself into new territories or markets. For instance, if a soft drink manufacturer unveils a line of juices or bottled water products under its company name, this would constitute an example of brand extension.

Are brand extensions an important brand?

Brand extensions are a key component of virtually any branding strategy. In my opinion, I believe that brand extensions have the potential to enhance a brand. I also believe that brand extensions are an important part of brand-growth.

What is brand extension?

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.