What is product/brand extension?

What is product/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. If successful, a brand extension can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.

What are the different types of brand extension?

Types of brand extension

• Product form.
• Companion product.
• Company expertise.
• Brand distinction.
• Brand prestige.
• Transfer of components.
• Leveraging a lifestyle.

What is brand extension and its types?

Basically, a brand extension is leveraging an existing brand to promote a product in a different category. There are various types of brand extension such as product form, companion product, expertise, customer franchise and brand image type.

What is the difference between brand extension and brand licensing?

Brand extension is a branding strategy that uses an existing brand name to promote a new or improved product in a company’s product line. Brand licensing is a legal authorization by a brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee.

Which of the following is an example of brand extension?

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. An example of a brand extension is Jello-gelatin creating Jello pudding pops.

How does Coca Cola use 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 is brand extension example?

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 the two types of brand extension?

A line extension is the extension of the product line, while the brand extension is the extension of the width of the product mix. Line extension involves an extension of the existing product category.

Is brand extension a licensing brand?

In brand extension licensing, the licensed product assumes the identification of the brand to the consumer or end user, and to the retailer. Co-branding is the process of joining two or more brand names or trademarks on a single consumer product.

What is an example 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. Sometimes a line extension is called a product extension.

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.

What is the role of a brand extension?

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. It increases awareness of the brand name and increases profitability from offerings in more than one product category.

What is product line extension?

A product line extension is a new product that is slightly different to a company’s existing range. An example would be a new pack size of an existing food product line, such as children’s breakfast cereals.

What is an example of a line extension?

Line extension involves an extension of the existing product category. For example, Coca-Cola releasing its ‘Diet Coke’ variant was a line extension where the product didn’t release in a totally new category. Whereas, brand extension is where the new products are launched under the same brand but in new territories or markets.

What is an extension line?

Line Extension. 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. In short, line extension adds variety to its existing product…