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.
product line extensions are a process where companies with an established brand alter the factors of a product or products to satisfy a refined segment in the market. this is as extending their product line enlarges their product portfolio and as a result provides the consumers with more variety to choose from.  an issue also connected to the extensions, could result in the production process becoming more and more complicated as a result of new products, this could affect the company’s efficiency and quality in the production of the brands product range.
this can be good for the consumer as product prices may become more competitive, and goods may become cheaper to purchase. when extending the product line downward, the new product or products become more available to consumers and most likely, cheaper. brands extending their product lines upward successfully can benefit through the increasing amount of middle-class consumers that are becoming more capable and willing to invest their money in luxury products. a way to combat this is to increase the quality of the brands luxury goods, as well as targeting aspects of the consumer market that are able and prepared to pay more for the higher quality product.
a vertical branding strategy strives for better products, while horizontal branding strategy pushes for different. we talk about dyson more in our examples of brand extensions article. pdf | relates evidence which suggests that launching a vertical brand extension generally has a a vertical extension, on the other hand, involves introducing a similar brand in the same product category, but usually at a, vertical brand extension pros and cons, horizontal and vertical brand extension examples, types of brand extension, types of brand extension, horizontal line extension example. in essence, horizontal brand extensions describe those where a brand has diversified beyond its existing product class or market. in contrast, a vertical brand extension involves the introduction of a product or service in the same product category as the core brand, but at a different price point or quality level. relates evidence which suggests that launching a vertical brand extension generally has a negative impact on the core brand because it dilutes the core brand image, advising that a brand extension should be introduced only when its profit potential exceeds the losses that will be sustained as a result of damage to the
the risk of brand image dilution is especially strong for vertical extensions (aaker , 1997; michel and salha, 2005) and will a product line extension is the use of an established product brand there are two types of product line extensions, horizontal and vertical. horizontal extensions consist of keeping the price and quality overall, perceived value partially mediates the relationships of brand attitude and of extension attitude, vertical line extension example, brand extension with example, category extension, brand extension strategy, 2019 brand extensions, upward brand extension, brand extension ideas, downward brand extension
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