a brand extension is when a company uses one of its established brand names on a new product or new product category. the strategy behind a brand extension is to use the company’s already established brand equity to help it launch its newest product. a brand extension leverages the reputation, popularity, and brand loyalty associated with a well-known product to launch a new product. a weak or nonexistent association can result in the opposite effect, brand dilution. successful brand extensions allow companies to diversify their offerings and increase market share. the existing brand serves as an effective and inexpensive marketing tool for the new product. 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. brand extension can be as obvious as offering the original product in a new form.
brand extension also may be applied to a different product category. in the best examples, the brand extension is natural and arises from a recognized positive quality of the original product. arm & hammer produces a deodorizing cat litter under its brand name. the creation of complementary products is a form of brand extension. the cost of introducing a product through brand extension is lower than the cost of introducing a new product that has no brand identity. 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. an example of an unsuccessful brand extension occurred in the early 1980s when popular jeans manufacturer levi strauss & co. decided to launch a line of men’s three-piece suits under the sub-brand levi’s tailored classics. the company couldn’t overcome consumers’ perception of the brand as one associated with rugged casual wear and not business attire.
brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category. in a study of more than 300 brand extensions it was determined, and now widely accepted that there are eight types, each with its own unique leverage. with greater access to information, choice in products and services, brands have found themselves shifting rapidly to adapt to what this new consumer not just wants but expects a brand to deliver.
a brand may enter new product categories, new product formats within a category (line extensions), or new markets or market segments. not too long ago here on branding strategy insider, one of my co-authors, nigel hollis shared three basic ways a brand can change the brand game to its advantage: if you find our thought pieces on brand strategy and brand management insightful and would like a deeper understanding for yourself, your marketing teams or leadership teams we can develop a customized learning and development engagement for you. we focus on sharing thought provoking expertise that promotes an elevated conversation on brand strategy and brand management and fosters community among marketers.
successful brand extensions allow companies to diversify their offerings and increase market share. brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed brand extension is a strategy used in marketing. a company which is already branded in the market, brand extension definition, brand extension definition, brand extension strategy, brand extension meaning, unsuccessful brand extension examples. 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. an example of a brand extension is jello-gelatin creating jello pudding pops.
if they develop a product in a market that isn’t closely tied to their flagship product or core brand, like brand extension is the use of an established brand name in new product categories. this new category to which the expense of introductory and follow up marketing programs is reduced. there are line extension vs. brand extension. line extension and brand extension address the marketing of commercial goods.,
When you search for the brand extension in marketing, you may look for related areas such as brand extension definition, brand extension strategy, brand extension meaning, unsuccessful brand extension examples. what is brand extension marketing? what are the types of brand extension? what are some examples of product extensions? which is an example of a company using brand extension?