A brand extension is when a company uses an existing brand to create new product categories. Brand extension is best saved for built-up, stable organizations that are hoping to add another flood of income to a previously working activity. For instance, Nike’s brand core product is shoes. 6) In times of intense competition, to cover every niche, the best strategy available to companies is to go for brand extension. What Is Brand Architecture? brand extension need less advertising support in comparison with new brand launches. For example, Fairy (owned by Unilever) was extended from a washing-up liquid brand to become a washing powder brand too. Examples of successful brand extensions Of course we are talking about the brand extensions that have become the latest strategy adopted by brand managers to exploit the brand value. Google's core businessis a search engin… Everyone knows Lay's potato chips, in the yellow chip bag. In the search for more revenue, many brands seem keen to broaden their mandate or redefine the sector they see themselves as now being part of. A parent brand is an existing brand that gives rise to a brand extension by supporting the allied products/services by sharing its brand identity. An example of this might A renowned/successful brand helps an organization to launch products in new categories more easily. 19. Note: Check out our brand strategy toolkit— for step-by-step guidance while designing your brand strategy. - Components, Types, & Examples Brand stretch: a launch of a new product into a completely different and unrelated category. Interview Insights: t’s important to interview key stakeholders before defining your brand platform. Callawayis a company which builds gold clubs, then after that, the company started launching other products that are relevant to golfers. For example Another example of a brand that has many line extensions is Lay's potato chips. I bet that you’ve heard the … Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). 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 007 fragrance is a good example of this. From Ralph Lauren’s Blue Label to Ralph Lauren Rugby, you know you’re getting the same well-respected apparel. When the firm comes up with the business strategy of Product Line Extension, it attracts the same line of the target audience who are looking out for a variety in the product category. Look to these and other consumer brands for endless examples of successful brand extensions. 5) Brand extension increases the visibility of brand. Brand extension refers to the use of a successful brand name to launch a new or modified product in the same broad market. 2. As brand extension examples go, Ralph Lauren isn’t the most daring, but it is a great example of how companies can reach a huge selection of different audiences by maintaining the same great image. The good news is that line extensions are easier to develop, and often more successful, than fanciful brand extension ventures. A brand may develop a close association with a combination of taste. For example Coke is perhaps the best and the most common example where you get to see variations of coke in the shelf today. A product line extension is introducing a new product – that is similar to … Transfer a component: Crayola soap paints (creative color), Entenmann’s “Fresh Baked” Candles, … An existing brand that gives birth to a brand extension is the parent brand. Gucci — Sleek and Sexy to Insta-Worthy and Progressive. Brand Extension is the use of an established brand name in new product categories. 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. Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brand’s relevance and appeal. Brand extension may be successful or unsuccessful. Coca-Cola extended their line of soft drinks with a seasonal cinnamon flavored version. Consumer packaged goods (CPG) brands are the reigning royalty of However, the bad news is that when a line extension fails, particularly when it offers a poor experience, the fact that it is in the same category as its parent brand poses a much greater risk of damage to that brand . All the above examples proved … And remember, Oreo is simply one brand of global conglomerate Cadbury. For example, snickers created into snickers ice cream bars. chooses the company brand or if it does not give it a name at all for example. The Importance of the Brand in Brand Extension Brand equity is an elusive concept but has been de-scribed most frequently as the value a brand name adds to a product (e.g., Farquhar 1989). Definition: The Brand Revitalization is the marketing strategy adopted when the product reaches the maturity stage of product life cycle, and profits have fallen drastically. the process by which consumers evaluate brand extensions. (Sullivan, 1992). In this article, you’ll learn more about what a brand extension is and see examples of extension ideas that could inspire you. A strong brand name is an invaluable asset; managers must know when to exploit it, when to protect it, and how to tell the difference between the two. Brand extension also may be applied to a different product category. Brands need to identify the advantages of a new category as well as how this category will bring success to the brand. Brand extension can be as obvious as offering the original product in a new form. customers. Another form of brand extension combines two well-known products. It is an attempt to bring the product back in the market and secure the sources of equity i.e. Colgate with Hemp Seed OilColgate-Palmolive extended their line of toothpastes with one that has hemp seed oil. Colgate Cavity Protection,… Brand extension: the launch of a new or modified product into the broader market category in which the brand operates (e.g., … Brand extensions … 7) Think … Srivastava and Shocker (1991) aptly note that the value of a brand name can be The Clorox brand is associated with cleanliness, and is known for its … It’s also important in B2B because it helps you stand out from your competition. Some example of brand extension are: Apple : from personal computers into MP3 players. Various brand extension has already been taken place in service sector too, for example. by Mark Di Somma. The key difference between line and brand extension is the product category.•. Sunkist's Vitamin C Tablets (The Best) Featuring orange juice as their flagship product, Sunkist’s … This marketing strategy dates back from the 1960`s (with retailers` brands in ... A brand needs to evolve or change products if it wants to continue existing. This gives a company the chance to extend its … All the brands created under the parent brand have some important features related to the existing brand along with certain differentiated factors. First, they started offering golf club, and then they started producing other products which golfer use like umbrellas, bottles, gloves, and etc. … 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. companion products, product forms, company expertise, customer franchises Because using an established brand name substantially reduces new-product introduction risks, there is an almost irresistable pull to “extend” brand names to new products. Capitalizing on these properties, the brand could be leveraged in other product fields. BRAND EXTENSIONS• Using an existing brand name to promote a product in a different category, is Brand Extension.•. Coca-Cola, Diet Coke, Coca-Cola… 20. A similar product can be formed into a different form from the original parent product. Know your audience — identify and research your target customers. Clorox Toilet Bowl Cleaner. Brand extension is one of the strategies a company can use and it is not actually a new concept. Category remains constant whereas in brand extensions product category is a variable. Your brand strategy brings your competitive positioning to life, and works to position youas a certain “something” in the mind of your prospects and customers. Gucci was a highly successful brand in … Another advantage would be that brands do not need to spend money on rebranding. Virgin extended its brand into radio stations, providing financial services (Keller 1 998). Let us discuss few of the methods of creating a brand extension: 1. These initiatives are called brand extensions, and they allow companies to leverage their brand awareness and equity to create more revenue streams. A successful brand helps a company enter new product categories more easily. 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. But the hunt for diversified revenue streams comes with its own list of dangers and the most obvious caution is this: don’t lose the plot. It involves experimenting with a new type of product and relying on customer research and strong branding to help it become successful. Brand extension is a significant departure from a brand’s core products. This new category to which the brand is extended can be related or unrelated to the existing product categories. Many a time if the firm is not well researched about the market dynamics and the evolving tastes of the customers, the Product Line Extension can backfire and affect the sales and brand value of the original product. The new product is called a spin-off.. Having a different flavor, component or ingredient to the existing product to create a new product. A business should take the risk to earn profit and it secures the future of the business. Snickers Ice Cream Bars are a brand extension of the Snickers Candy Bars. When it is well received in the market and survives long it enjoys a proprietary association of distinctive taste. For example, the Boston Market restaurant chain launched a line of frozen dinners under its own name, offering similar fare. However, brand extensions fail when the product lines are a distinct mismatch. The brand name may even cast a disagreeable light on the new product. For example, Colgate, a brand synonymous with dental care products, once tried to extend its brand to a line of frozen dinners. Consumers just didn't want minty-fresh lasagna. The reality is that there are many examples of successful brand extensions, and the benefits from the extensions are huge. For example, Motorola was a … Brand Diversification: Extend With Caution. Breyers ice cream with Oreo cookie chunks is a matchup that relies on consumers' loyalty to either or both original brands. Product line extension. A brand extension is when a company uses its leverage to launch a new product in a different category. Branding is crucial for products and services sold in huge consumer markets. However, for a brand with less brand equity, extensions can be much more risky. In line extension the pdt. Most brand extensions use the same brand standards of the parent brand.

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