A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product. Some example of brand extension are: Apple: from personal computers into MP3 players . Callaway: from golf clubs into footwear, apparel and golf accessories.
What are types of brand extensions?
- Product form.
- Companion product.
- Company expertise.
- Brand distinction.
- Brand prestige.
- Transfer of components.
- Leveraging a lifestyle.
What are some examples of product extension?
A product line extension is when an existing brand launches new products in a product category they already offer products within. For example, when a soft drink company offers a new flavor of soda .
How does Coca Cola use brand extension?
Marketing an entirely new category of products is called brand extension. (A good example of this would be Coca Cola introducing a soda on the market with a different flavor, CHERRY COKE, or with less calories, ZERO). ...
What is an example of brand stretching?
Brand stretch: a launch of a new product into a completely different and unrelated category e.g. Galaxy Creamy Hot Chocolate with Marshmallows or Robinsons Classic Fruits Sweets.
What are the two types of brand extension?
- Companion Product Extension.
- Product Form Extension.
- Company Expertise Extension.
- Customer Franchise Extension.
- Brand Distinction Extension.
- Brand Prestige Extension.
- Extension By Transfer Of Component.
- Extension By Leveraging A Lifestyle.
What is the role of brand extension?
A brand extension is when a company uses one of its established brand names on a new product or new product category . It’s sometimes known as brand stretching. The strategy behind a brand extension is to use the company’s already established brand equity to help it launch its newest product.
What is the example of extension line?
Line extension refers to the expansion of an existing product line . For instance, a soft drink manufacturer might introduce a “Diet” or “Cherry” variety to its cola line, while a toy manufacturer might introduce new characters or accessories in its line of action figures.
What is an example of extension strategy?
For example, a business could try introducing a different sized version of the product . Increasing marketing activity – Running new advertising campaigns and sales promotions can attract new customers, remind previous customers that the product still exists and encourage existing customers to buy more of the product.
Is brand extension good or bad?
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.
What is brand line extension?
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 CokeTM is a line extension of the parent brand CokeTM.
Does Coca-Cola have brand extension?
This brand is best known for its original coke taste, but using brand extension , Coca-Cola has launched a whole new line of various coke products, such as Coke Zero and Cherry Coke flavor. When exploring brand extension, this can also mean completely unrelated product lines compared to the original product.
What went wrong with Coke life?
– Soft drinks purchases are driven by brand familiarity, sensory attributes, and health, yet Coca-Cola Life failed to resonate because it did not offer clear advantages over Coke’s existing line -up. – Developing breakfast cereal influenced by Western culture to meet local sensory preferences generates opportunities.
What is multi brand with example?
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.
What is a successful brand extension?
The Future for Brand Extensions
What is the recipe for a successful brand extension? Simply put, companies must expand their reach, demonstrate their value, and grow their business with products that capitalize on logic and leverage .
Why do brand extensions fail?
When brand extensions fail, it’s usually because companies try to borrow or milk their brands , and/or they simply do not pay enough attention to creating sufficient new consumer benefits.
