in this article we are only concerned with product entries which are brand extensions from the point of view of retailers wishing to use them as a growth strategy. we suggest that vertical brand extensions are actually line extensions because introducing a new product or service into an existing market is an extension of the line not the brand. the current definitions of brand and line extensions in the literature fail to account for these distinctions. retailers can engage in any of the strategies listed on a temporary or permanent basis.
in this instance, retailers use their own brand or sub-brand to enter a new market. sunglass hut looked to expand into a new market where the principles of their existing brand could be transferred. with this strategy, retailers use a combination of brands to introduce new products in an existing field. in this sub-category, retailers use an existing manufacturer brand to introduce a new product or service into an existing market. a version of this article first appeared in the retail digest.
for example, the mini car brand is an example of a horizontally differentiated brand. most companies start with a vertical brand strategy when they are a startup and move to a horizontal brand strategy when they establish the market. a product may be the best on a feature customers do not care about. a company with a horizontal brand strategy uses design, engineering, and marketing to make their product uniquely appealing to the needs of certain types of people. a brand needs to promote the brand personality and vision they are going for.
you can use this grid as a way of assessing the marketplace. sometimes this analysis can reveal a hole in the market that a brand can retool their product and messaging to fill. a startup company makes a product with better technology and shouts that advantage from the rooftops. many small businesses look to large competitors and are discouraged because they do not have the resources to develop a superior product to them. you want to be comparing your belt with other premium, more standard belts so that you are the “different” option on the top end of the market. bmb is an online journal with articles that help entrepreneurs, marketing executives, and designers reach their full potential as brand builders.
line extensions therefore involve the launch of new products from the same category or product class under a familiar brand name such as coca-cola launching diet coke and diet caffeine-free coke. for example, hyundai chose a vertical brand strategy for its ioniq hybrid car touting it as “the most fuel-efficient car in america” with it’s 58 combined mpg. horizontal branding is when a company differentiates its product as “different” and subjectively more appealing to some people. vertical brand extensions:vertical brand extensions: vertical there have been several, horizontal and vertical brand extension examples, vertical brand extension pros and cons, vertical product line extension examples, vertical product line extension examples, vertical line extension example.
an example of a vertical brand extension would be isaac mizrahi for target shoes, where the haute. for example, the decision to vertically extend a brand upward may have an impact on the price premium that. in vertical branding, a brand tends to the price of a product on the quality of the product. for example, in the apparel in., downward brand extension, types of brand extension, upward brand extension, athlete brand extension examples, category extension, brand extension strategy, upscale brand extension, 2019 brand extensions
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