A robust brand extension strategy is vital to maintaining relevance in today's hyper-competitive marketplace and should be a logical step from the parent brand. Building your business through brand extension during tough market conditions, brand or product line extensions might just be the best way for your business to stay healthy, especially if they're not something you spend much time thinking about when done right, brand extensions can either be a positive. 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 the new product is called a spin-off organizations use this strategy to increase and leverage brand equity (definition: the net worth and. Thinking of nudging your brand name into a new category good luck but please, read this first by robert klara | february 4, 2013 share by robert klara | february 4, 2013 share it's a plane it's a purifier it's both in theory, launching a successful brand extension should be easy all you have to do is take a familiar. Abstract - this study was conducted in order to examine a number of important issues related to brand extension strategies the results revealed that while the use of a direct brand extension strategy may lead to undesirable negative reciprocity effects, the use of an associative brand extension strategy may mitigate.
Line extension is increasing the number of products in a given set of already known product category basically the skus these are generally of variations of a given product eg: dabur glucon-d was originally available only in a single flavor n. Tions of a brand extension: brand affect and the similarity between the orig- inal and extension product categories however, surprisingly little attention has been paid to other associations specific to the brand itself the authors perform three experiments to explore the relative importance of these asso- ciations. Research into brand extensions has mainly focused on consumers' extension evaluations without considering an important financial implication: the ability of the extension product to charge a price premium this study analyzes (1) the extent to which consumers are willing to pay a price premium for the extension product.
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 for instance, nike's. The details and benefits of brand extension licensing in contrast to traditional licensing practices, which rely on brand recognition to drive product sales, brand extension licensing utilizes the brand's innate qualities to inform consumers in the creation of new products the potential benefits of brand extension licensing. A brand extension is what you need when you want to appeal to new audiences with the brand you already have. If you're in marketing, you may have heard the terms sub-branding and brand extension but what's the difference well, there's a big difference let's break it down what is sub-branding sub-branding is when a main brand creates a subsidiary or secondary brand (for example, diet coke or nacho.
The brand extension is the marketing strategy wherein a new product is launched under the existing brand name the category in which product is launched may be related or unrelated to the brand's current category several companies go for brand extension to leverage the image of brand established so far along with its. Brand extension can provide more sales opportunities for successful brands but this branding strategy could boomerang against a brand learn what brand extension is and how it's used in marketing.
I was reading somewhere that 70% of new products are brand extensions using a well-known brand name to enter a new category seems to be the the obvious way to improve the bottom line.
In part 1 of 3, learn what a brand extension is and the reasons why it might be time to extend your brand. Overview new product & brand extension brand extension types of brand extension advantages disadvantages how consumers evaluate extensions. Marketers want to use brand extension strategies as much as possible today because it is a more affordable way to introduce products but the key is having. I admit to being a james bond geek, but when i heard that studio bosses had decided to release a fragrance to celebrate the 50th anniversary of the 007 franchise i was skeptical image: 007fragrances.