“Is brand extension. The brand extension involves using an existing brand name to launch a a product in a different category. The brand extension strategy leverages. The parent brand to a new product category.
When compared to the launch of a new brand this approach. Adds. Incremental value and reduces risk and costs. This strategy is more common for firms.
Whose current brand equity is strong enough to influence existing customer base and brand loyalty to increase profits with the new product category. Offering. Let s take a look at some of these strategies. Number.
One similar product in a different form from the original parent product. This is the strategy snickers used to create snickers ice cream bars number two distinctive flavor ingredient or component. In the new item. Hershey s chocolate milk uses this strategy consumers purchased this product.
Because they know the taste of hershey s chocolate. Number. Three benefit. Attribute feature.
Febreze is known for smelling good. So extending into the car air freshener category made sense for this company number four expertise. Honda is known for reliable engines. Which made honda lawnmowers a good move for the company number five companion products and jemima launched a pancake syrup to go with its pancake mix.
Number six of vertical extensions. This strategy has the reputation of going backwards for example rice krispies are used to make rice krispie treats so kellogg s decided to offer a ready to eat version of this snack and lastly. We got designer image and status harley davidson found success with this strategy through its clothing line. Developing a brand strategy.
The brand extension needs to have a brand strategy. According to our text for major brand options exists an existing master brand would descriptive sub brands or a branded house. An existing master brand with a sub brand. A new brand endorsed by an existing brand and a new brand unrelated to an existing brand or a house of brands.
Three questions upon. Which the optimal extension branding. Choice. Depends are will the brand enhanced.
The extension will the extension enhance the brand and is there reason to generate a new brand. These. Three questions will help direct the branding strategy. Let s look at these three questions.
A little more closely question..
Number. One well the brand enhance. The extension. A well known brand name can support a new offering by building or increasing awareness quality.
Trust associations and a customer base resulting in the potential to save time and resources enhancing the chances of success one of the key success factors for a brand extension is the appeal of the parent brand. It should be obvious that a brand extension has a greater chance of success if customers have favorable attitudes toward the parent brand. Then if the parent brand is widely despised even among wild liked and respected brands. Some bread images are more likely to foster successful brand extensions than others one key success factor is whether the brand s image is concrete or abstract concrete brand associations are very specific to a product category imagine a brand of car battery with the concrete brand image of long lasting car battery that starts my car every time if the brand image is tied to the car category or as associated which starts my car the brand may have difficulty extending beyond the car battery category in contrast abstract brand associations are broadly applicable to a variety of product categories imagine the same brand of car battery positioned itself as a long lasting power source that abstract brand image of power source could make the brand much more extendable.
It is easier to imagine a brand with this abstract brand image being extended into alkaline batteries rechargeable batteries for mobile devices generators solar energy panels and other product categories that involve the production or provision of electricity. As another example if the brand image of honda was concretely described as fuel efficient automobiles. The brand would only make cars and motorcycles but with the abstract brand image of fuel efficient gasoline images it is easy to understand why honda s brand extensions into lawnmowers and power generators have succeeded question number two will the extension enhance the brand. The focus of brand extensions is on making.
Sure the extension is successful yet an equally important consideration should be on how the extension affects the brand equity. A good extension provides visibility. There are additional advertisements package placement and people talking about the bread. This exposure is a bonus for the brand.
The simple exposure implies market acceptance and capability. Loyal customers will have a strengthened relationship with the bread because they will be able to use it in another context question. Number three is their reason to generate a new brand developing a new brand is expensive and difficult multiple brands complicate. The brand architecture for both the firm and customer.
A separate brand should be developed or supported only when a compelling need can be demonstrated and a new brand. It needs to be justified through the practice of organizational self restraint. And following the best course of action tips for successful brand extensions to increase the probability of success any brand to follow a few best practices first measure brand equity. One of the biggest concerns when implementing brand extensions is the risk of causing brand dilution that is when the new product category fails and presents a negative impact on the brand thus the first step is to have friend equity measurements in place to track.
Possible future impacts next measure. The potential risks run a scenario analysis to identify the positive or negative effects on the business and brand equity. The goal is to implement a brand extension whose risk of failure does not exceed any marketing efficiencies third leverage from business core competencies. The new product should leverage all the skills and know how from the current business and marketing operations to gain a competitive advantage in the new category.
By identifying the business key competencies. The brand will be able to gain efficiencies and create market differentiation fourth invest in market research in the eagerness to grow the business brands forget about making sure the new category has market potential. But there are clear opportunities for unmet customer needs when identifying key opportunities make sure to understand prospect and current customers and estimate their acceptance for potential brand acceptance use market and research also to test the possible new brand extension. The text also suggests doing extensive extension research to identify those product categories for which the brand fits in adds value next make sure the brand extension is a logical fit.
The new product must be a logical fit to the brand compatible expected and follow the current brand story the link between the new product. And the parent brand should be easily tracked the biggest brand extension. Pitfalls fall into this category. And finally create a brand extension strategy.
After making. Sure. The story follows a smooth path between both categories make sure you develop a brand management plan and a compelling go to market strategy that couldn t that will connect with your audience across multiple touchpoints created using powtoon. ” .
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“NMHU-Marketing 535-Brand Extension Strategies”,