A brand extension leverages the reputation, popularity, and brand loyalty associated with a well-known product to launch a new product. To be successful, there must be a logical association between the original product and the new item.
Extending brand value or brand extensions is an umbrella term for strategies that focus upon maximising the brand reach in a given context. Methods of brand extension include: Re-positioning same product in a different form. Re-positioning different product in the same form.
“ Brand extension uses the leverage of a well known brand name in one category to launch a new product in a different category.” There are four types of new products . The traditional new product uses a new brand name . The flanker, line extension and brand extension all use an existing brand name .
Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/original brand .
8 Types Of Brand Extension Similar Product In A Different Form From The Original Parent Product. Distinctive Flavor/Ingredient/Component In The New Item. Benefit/Attribute/Feature Owned. Expertise. Companion Products. Vertical Extensions . Same Customer Base. Designer Image/Status.
A variation of existing product launched under the existing brand . It often adds different flavor, package size or shape. For example, Coke is basic brand with Diet Coke as extension .
Extension strategies include rebranding, price discounting and seeking new markets. Rebranding is the creation of a new look and feel for an established product in order to differentiate the product from its competitors.
The four brand strategies are line extension, brand extension , new brand strategy, and flanker/fight brand strategy.
Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes. This is as opposed to brand extension which is a new product in a totally different product category.
A company has a multi – brand strategy when their portfolio of products has different brands or names. For example , Nestlé has a multi – brand strategy with over 2000 different brands including KitKat and Nespresso.
Brand Equity is the value of a brand , or can be summarized as the perceived value by consumers over other products. The equity of your brand is important because, if your brand has positive brand equity , you can charge more for your products and services than the generic products or other competitors.
Rebranding . Rebranding is the process of changing the corporate image of an organisation. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand. The idea behind rebranding is to create a different identity for a brand, from its competitors, in the market.
1 reason why some brand extensions fail is simple: they don’t bring enough meaningful value to the consumer. Its McPizza product flopped because consumers thought its value proposition was too similar to established competitors such as Domino’s and Pizza Hut.
What is a brand line extension ? A company introduces a brand line extension by using an established product’s brand name to launch a new, slightly different item in the same product category. For example , Diet Coke™ is a line extension of the parent brand Coke™.
A category extensions is when an existing brand name is applied to a product category that is new to the firm. The study is conducted based on exclusively written data whereas a presentation of textual. analysis will appear.