brand extension

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.

in the 1990s, 81 percent of new products used brand extension to introduce new brands and to create sales. [7][8] in spite of the positive impact of brand extension, negative association and wrong communication strategy do harm to the parent brand even brand family. brand extension research mainly focuses on consumer evaluation of extension and attitude toward the parent brand. [16] another form of brand extension is a licensed brand extension.

[23][24] literature related to negative effect of brand extension is limited and the findings are revealed as incongruent. [27] these failures of extension make consumers create a negative or new association relate to parent brand even brand family or to disturb and confuse the original brand identity and meaning. studies also suggest that brand extension is a risky strategy to increase sales or brand equity. [36] the negative impact of brand extension would cause a great damage to parent brand and brand family. because the effects of negative impact from brand extension are tremendous and permanently.

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. brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed and just like her venture into music, companies often extend their brand to develop new products in, . 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.\norganizations use this strategy to increase and leverage brand equity.

brand extension is a marketing strategy in which an organization that markets a product or service with a brand extension (also called brand stretching) is a marketing strategy where the company makes use brand extension is the use of an established brand name in new product categories. this new category to which the,

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