What is brand extension with example?

What is brand extension with 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.

What are the types of brand extension?

Types of brand extension

• Product form.
• Companion product.
• Company expertise.
• Brand distinction.
• Brand prestige.
• Transfer of components.
• Leveraging a lifestyle.

Which is an example of a company using 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 is an example of extension strategy?

Extension strategies include rebranding, price discounting and seeking new markets. More complex rebranding efforts can include new advertising strategies, extensive public relations (PR) and social media marketing campaigns.

What is the role of a 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. It increases awareness of the brand name and increases profitability from offerings in more than one product category.

How do you write brand extension?

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 are the two types of brand extension?

A line extension is the extension of the product line, while the brand extension is the extension of the width of the product mix. Line extension involves an extension of the existing product category.

How does Coca Cola use brand extension?

This brand is best known for its original coke taste, but using brand extension, Coca-Cola has launched a whole new line of various coke products, such as Coke Zero and Cherry Coke flavor. When exploring brand extension, this can also mean completely unrelated product lines compared to the original product.

What is a successful brand extension?

Historically, the most successful brand extensions are the ones that closely tie to the company’s core brand or flagship product, like Gerber’s baby clothes and Dole’s frozen fruit bars.

What makes a good brand extension?

Make the brand extension a logical fit The new product must be a logical fit to the brand, compatible, expected and follow the current brand story. The link between the new product and the parent brand should be easily tracked. The biggest brand extension pitfalls fall into this category.

What is the role of a brand extension for most brands?

What is the definition of a brand extension?

What Is Brand Extension? Brand extension (also called brand stretching) is a marketing strategy where the company makes use of its existing established brand name for a new product or a new product category. This new product or product category (called a spin-off) substantially different yet logically related to the well-known original product.

What do you mean by horizontal brand extension?

product in the same product class or to a product category altogether new to the company, it is called horizontal brand extension. According to Aaker and Keller (1990), based on their focus, there are two varieties of horizontal brand extensions viz.; line extensions and franchise extensions.

Can a brand extension be a bad strategy?

Brand extension can prove to be the best or the worst strategy undertaken by the company. It can either increase the brand equity because of right judgement or can result in brand dilution just because the spin-off wasn’t able to prove its relationship with the existing product.

When does brand extension lead to brand dilution?

Can lead to brand dilution: Brand dilution is the weakening of the power of the brand because of its overuse. It happens when the company uses the brand extension strategy in almost every industry it wants to enter into without considering the logical relationship between the existing and new products.