brand extension definition
BRAND EXTENSIONS• Using an existing brand name to promote a product in a different category, is Brand Extension.• The key difference between line and brand extension is the product category.• In line extension the pdt. For consumers, there's was no synchronicity between the two product lines. The extension may strengthen the parent brand by supporting the core associations. The startup brands usually invest a lot of resources on advertising for the promotion of their brand. need the marketing and promotion of their product after extending. Brand extension is the use of a brand for a new type of product. can extend their product at any time, whenever there’s a conflict with their The company couldn't overcome consumers' perception of the brand as one associated with rugged casual wear and not business attire. Brand stretch : a launch of a new product into a completely different and unrelated category . Want to learn more? If wear, and clubwear. company can extend its clients who grow the business by selling the products of More Likely to Accept the New Products. Other brand extension ideas involve stepping into a completely different market. Learn more. This allows a firm to leverage existing brand awareness and identity that would be difficult and/or expensive to develop with a new brand name. Brand Extension Brand extension is the use of a brand name on a completely different type of product. In Brand Extension The act or practice of adding a new product under the same brand name. Brand Extension Definition: The Brand Extension is the marketing strategy wherein a new product is launched under the existing brand name. If you provide them what they’re looking for, then they won’t get bored with your brand. Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category. To illustrate the definition of a product and the role it occupies in defining branding, we will use the example of water: Water is a free resource that every human being needs to live and survive. Améliorez votre vocabulaire avec English Vocabulary in Use de Cambridge. ‘A brand extension, Edge by Grand Slam, a collection of technical sport apparel, is slated to launch later this year.’ ‘And that's how we are showing that a superhero brand extension is possible, starting in the music side and going into every other key area of the global popular culture.’ However, it’s hard to maintain the positive and uniqueness of your brand. The original brand communicates the message. though, these definitions look quite similar. Definition of Brand extension? Example: Amazon, Ali express and Daraz, etc. For instance, if the company has a brand of hair oil, The the process of using an existing brand name to introduce new products or services: One of the country's leading radio groups is planning brand extension into pay-TV. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. If the company extends the brand name too long, then it will lose its reliability. In then it’ll extend in the forms of baby oil and relaxing oil. Look it up now! Bad brand extensions are just ugly. Definition - und Erklärung des Management-Begriffs "Brand Extension": aus dem Englischen: Ausweiten einer Marke. affects the entire company’s reputation. Brand equity refers to the value a company gains from a product with a recognizable and admired name when compared to a generic equivalent. The brand extension strategy helps the company to extend and move the brand to another category. This allows a company to introduce a new product without having to build up a whole new customer base for it. One brand extension allows for more extensions in the future. Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category. Value of branding. Brand extension strategy refers to the use of an established company’s name or brand to enter a new product class or industry. Brand extension is defined as. existing product and the Company usually adopts this strategy in its The brand image should be unique and positive. The process is quite difficult. Brand The category in which product is launched may be related or unrelated to the brand’s current category. Apple (AAPL) is an example of a company that has a history of effectively using a brand extension strategy to propel growth. Therefore, companies take advantage of introducing companion products in the market. Student videos. Ferrari is an Italian luxury car; it began its journey as sports cars, and then extended the brand and launched the theme parks. A brand extension can be a source of new offering ideas, bursts of energy, brand enhancements, brand building economies and new growth platform. Customers usually support the new product launched by their favorite brand, which not only saves the cost but it also reduces the chances of loss. There Successful brand extensions allow companies to diversify their offerings and increase market share. Tuck School of Business, Dartmouth College. It’s because the company can’t be perfect in all product categories, and customers will start using the product of the other brands. The Brand extension is commonly followed by the marketer. Brand line and brand extension both need … What does brand extension mean? Snickers Ice Cream Bars are a brand extension of the Snickers Candy Bars. Brand extension: the launch of a new or modified product into the broader market category in which the brand operates e.g. Using the product category name as an extension along with the main brand, Japanese companies mostly use such expertise extension. By using Investopedia, you accept our, Investopedia requires writers to use primary sources to support their work. This allows a firm to leverage existing brand awareness and identity that would be difficult and/or expensive to develop with a new brand name. Brand extensions are an interesting brand strategy alternative, as they may attract new segments of customers who, for various reasons, may have not considered the luxury brand before. Historically, the most successful brand extensions are the ones that closely tie to the company’s flagship product or core brand, like Gerber’s baby clothes and Dole’s frozen fruit bars. When the brand extension is the extension of the width of the product mix, then line extension is known as the extension of the product line. There's a risk that the brand will lose credibility if the brand name is extended too far. Unter dem englischen Fachbegriff Brand Extension ist eine Markenerweiterung oder eine Markenausdehnung zu verstehen. After years of poor sales, the company discontinued the line. The common example of the brand line is diet cola and coca-cola zero sugar. A strong brand name is an invaluable asset; managers must know when to exploit it, when to protect it, and how to tell the difference between the two. the customer franchise extension, companies use this strategy and extend their Historically, the most successful brand extensions are the ones that closely tie to the company’s flagship product or core brand, like Gerber’s baby clothes and Dole’s frozen fruit bars. ‘His solution, currently embraced by 24 PGA Tour events, is to use the Internet to create a natural brand extension for sponsors and events.’ ‘And in the ultimate brand extension, he has brought his son into the act.’ ‘In the end, it will all come down to clever marketing of the brand extension.’ Example: Johnson baby oil, Johnson shampoo, Jonson powder, and Johnson baby lotion. In the process of using an existing brand name to introduce new products or services: One of the country's leading radio groups is planning brand extension into pay-TV. Example: Nescafe chocolate, Nescafe biscuit, Nescafe milk supplement. Butter, cheese and ice cream. One key step is to identify extension product categories where a new entry will benefit from and contribute to the brand … A different product or category– Launching a new flavou… Brand extension is the introduction of a new product that relies on the name and reputation of an established product. So what is important is what ice cream bar customers know of and think of Snickers. Brands and Branding… The first #Ferrari theme park in Europe. Brand extension is the use of a brand for a new type of product. A product family is a group of related goods produced by the same company under the same brand. For example, the Boston Market restaurant chain launched a line of frozen dinners under its own name, offering similar fare. The brand name may even cast a disagreeable light on the new product. Image: biggsreps.com. Kotler and Armstrong (2002) defined brand extension as using a successful brand name to launch new or modified products in a new category. by changing its form. Definition of brand extension in the Definitions.net dictionary. The new products rely on customer loyalty and satisfaction created by the original product. brand extension synonyms, brand extension pronunciation, brand extension translation, English dictionary definition of brand extension. Group(s):Key Terms & Concepts; Print page. A weak or nonexistent association can result in the opposite effect, brand dilution. What works for brand extension is difficult to say. Für ein neues Produkt werden Name, Logo oder Verpackungsdesign einer eingeführten Marke benutzt und nur leicht abgeändert. The company’s focus would be on quantity rather than quality of the product. For example, a car manufacturer that releases a line of bicycles. Brand Extension may Discourage Innovation. It is very risky at the same time, because if the customers find certain attributes of the extended product undesirable, then it’ll tarnish the whole image of the brand. Companion product extension is a complementary form of strategy which helps in sales promotion. They want a For example, when Jimmy Dean introduces a new flavor of sausage, it may put the Jimmy Dean name and logo on the wrapping. … This helps it to leverage the brand equity and positioningof the existing famous brand to get initial traction. Ferrari Land has opened its gates. The extension also aids the parent brand by way of positive feedback. The extensions clarify what the brand stands for. Weakening of the brand: It can be the weakening of brand equity or brand image… product in the form of a companion. Some key-phrases to focus on to understand the definition of brand dilution better: 1. All the above examples proved one thing that if you apply the marketing strategy rightly, then the brand extension will be successful. It The parent brand gets a better image. Stella Artois Cidre. Any new extension Example: APPLE, the apple brand launches different sorts of products through the Extension of brand. If the brand has an image of offering one product only, then the company cannot attract a wider range of audience and achieve success. This allows a company to introduce a new product without having to build up a whole new customer base for it. Ghirardelli Chocolate Company sells a brownie mix. A renowned/successful brand helps an organization to launch products in new categories more easily. 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. Companies In this marketing strategy, the company extends the categories. As a result, customers would find a variety of products, but there won’t be any innovation in the core of the main brand. In Some cases, the brand extension products may not generate new revenue but eat into the parent brand’s market share itself. Black & Decker makes a line of toy tools for children.