it is also known as brand stretching which is a form of marketing strategy in which the company uses existing brand equity to increase the brand equity of a new product. the expertise of a particular company in extended to a new product category or a brand category is called an extension of company expertise. when new products are introduced into unrelated and entirely new product categories, under the brand extension, it is termed an extension of brand image or brand prestige. the company that works backwards to launch a different product and obviates this distinction.
since it is been in the market for a long time it enjoys the proprietary association of the brand with the unique and distinctive taste. if the brand extension works in the favour of the company the company will have a new product to the into manage which will establish its status as a conglomerate. this usually happens in the case of the product extension which is not related to the company. for example, in 2018, when facebook ceo mark zuckerberg was accused of data scam, and the selling of customer data to various companies, it took a hit for other brand extensions of facebook like whatsapp and instagram. i am a serial entrepreneur & i created marketing91 because i wanted my readers to stay ahead in this hectic business world.
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. company expertise extension strategy comes to play when a company extends its expertise and its brand name to a new product. for example, bmw, a known automobile brand, extended its brand prestige to the products it launched in the apparel industry and accessories (watches).
this strategy is used by the brands to expand into industries not logically related to the existing sector they operate in, or just to borrow brand equity of a current influencer in that industry. even though line extension and brand extensions are sometimes mistaken to be the same, there is a considerable difference between the two. a line extension is the extension of the product line, while the brand extension is the extension of the width of the product mix. we are currently ranked as the 15th best startup website in the world and are paving our way to the top.
the extension can take a different form of product category since the expertise remains the same the when a company extends its brand into different product categories focused on a single market segment, product form extension. when a brand is launched in a different form, it is line extension. companion product extension. extension of customer franchise. extension of company expertise. extension of brand distinction. extension of brand image or prestige. distinctive taste, ingredient or component extension., .
learn about the different types of brand extension. improve your marketing strategy. see a list of 10 different types with the brand extension strategy helps the company to extend and move the brand to another category. either or both original brands. brand extension also may be applied to a different product category.,
When you search for the different types of brand extension, you may look for related areas such as . what are the various types of brand extensions explain with necessary examples wherever required? which is an example of a company using brand extension? what is a category extension? what is the difference between line extension and brand extension?