What is an example of brand extension?
Another way an established brand can extend itself is by creating complementary products for its main products. For example, Nike, a sports brand, creates various equipment, wears, and other sport-related products that complement each other.
What is brand extension and its types?
Brand extension is a strategy where a company creates a new product category under its well-known brand name. It helps launch new products easily, obtain higher profit, reduce costs necessary to launch a new business, and meet customers’ needs and wants.
What are two types of brand extensions?
Here’s a list of some of the top types of brand extensions:
- Product extension.
- Line extension.
- Customer franchise extension.
- Company expertise extension.
- Brand distinction extension.
- Transfer of component extension.
- Leveraging a lifestyle extension.
Why is brand extension important?
Brand extensions can also benefit the parent brand by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent brand’s relevance in its existing category. Extensions can also help to establish a brand’s position in new categories.
How does Coca Cola use brand extension?
A brand extension is when a company uses an existing brand to create a new product category. Line extensions can include different colors, sizes, flavors or styles. They enable the brand to meet the changing wants and needs of its customers. Coca-Cola line extended its brand by introducing Diet Coke.
What is brand extension and its advantages?
Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily.
What is a successful brand extension?
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.
How do you create a brand extension?
Methods of brand extension include:
- Re-positioning same product in a different form.
- Re-positioning different product in the same form.
- New distributor, franchise or relationships.
- Brand name or design change.
- Price changes.
- Renewed features such as distinctive change like taste, ingredients, components.
What is line extension and brand extension?
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.
Is Coca-Cola a 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.
Why is brand extension needed?
Advantages of Brand Extension It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.
What are the advantages of brand extension?
Advantages of Brand Extension
- It increases brand image.
- The risk perceived by the customers reduces.
- The likelihood of gaining distribution and trial increases.
- The efficiency of promotional expenditure increases.
- Cost of developing new brand is saved.
- Consumers can now seek for a variety.
Is Diet Coke a brand extension or line extension?
Coca-Cola line extended its brand by introducing Diet Coke. In 2010, Diet Coke became the second-most popular soft drink in the U.S.— overtaking Pepsi. That’s an example of a very successful line extension.
What are the benefits and risks of brand extension?
They can help the product be easily accepted. They can also improve the overall brand image. Consumers’ perceived risk can go down with brand extensions. Since the company has established the brand name as trustworthy and popular, they can also increase the interest of consumers and make them consider a new product.
What are the advantages of brand extensions?
What are the benefits of brand extensions?