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. and it is this uniqueness that attracts the customer to the brand.
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.
following are a few types of brand extension 1) companion product extension : 2) product form types of brand extension companion product extension product form extension company 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., .
shift the form. this is where a company changes the form of the product from the original parent product. brand extension – definition, types, & examples, pros & cons starbucks – coffee-based brand extension is the use of an established name for a new product starting with its popular mac computers, the company has leveraged its brand to sell products in new categories,,
When you search for the types of brand extension, you may look for related areas such as . what is an example of brand extension? what are the various types of brand extensions explain with necessary examples wherever required? what are the 4 branding strategies? what is a category extension?