Line extension and brand extension a
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. A brand extension is when a company uses its leverage to launch a new product in a different category there are eight different brand extension strategies: similar product in a different form. Brand extension, also known as brand stretching, is the use of a well-established brand name for a new product or new product category. Is brand extension the key difference between line and brand extension is the product categorybrand extensions using an existing brand name to promote a product in a different category in line extension the pdt.
Line extensions and brand extensions both allow companies to promote new products with reduced promotional costs because the new lines or brands benefit from being part of an established name. Brand extension extends the life of the brand a few years ago, arm and hammer was the baking soda company so therefore they derived the majority of their earnings from the white powder. My advice to any brand considering a brand extension who has answered the points above on creating a successful brand extension is: 1 consider carefully the time, money and effort into developing a brand extension, particularly if that product is a me too.
Brand extensions are now a commonplace growth strategy for many companies this article proposes and explains a new taxonomy for retailers to conduct brand extensions, based on a detailed examination of over one hundred retail brand extension cases. Brand extensions a brand extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3) when a new brand is combined with an existing brand (approach 3), the brand extension can also be called a sub-brand an existing brand that gives birth to a brand extension is the parent brand if the parent brand. The line extension was an effective strategy as the brand was so strong that we simply added on and profited 16 people found this helpful the makeup industry has long been known for their frequent and rapid line extension s, often releasing multiple products at a time. Line extension (or product extension) is a marketing strategy according to which the scope of the product a brand represents is increased ie when you are adding varieties or variations or flavors of the same branded product, you are basically doing line extension like brand extension, line extension is also done to leverage on the brand. Horizontal brand extension situation, an existing brand name is applied to a new product introduction in either a related product class (basic extension) or in a product category completely new to the firm (total extension.
A brand name can fail to help an extension or, worse, can create subtle (or sometimes not so subtle) associations that hurt the extension worse still, the extension can succeed, or at least survive, and damage the original brand by weakening existing associations or adding new, undesirable ones. Product line extension a line of products extension is the use of the mark of a product established for a new article in the same category of the product the line extensions happens when a company introduces additional articles in the same category of the product under same mark as new flavors, forms, colors, the added, so large ingredients of. Line extension can also by extending same product and same brand with different product features brand extension and line extension brand extension is a part of brand management to diversify and leveraging the existing brand by entering into new product category by new product development introducing new flavors and selling different sizes of. Brand extension the benefits and pitfalls bloomhead consulting | business development | me rger and acquisition |2 | they, however, still make buying decisions as driven by power of brand the typical consumers brand extension and line extension brand extension is a part of brand management. An example of a product line extension is the toyota lexus brand, which is a high-end extension of the basic toyota brand that targets consumers looking for bargains diet coke is a product extension of coke, introduced to meet the need for a low-calorie cola drink.
Line extension and brand extension a
An appropriate line-extension strategy for a brand requires the discipline to evaluate the true costs, in terms of both immediate economic considerations and long-term impact on brand equity. Brand extension definition: the brand extension is the marketing strategy wherein a new product is launched under the existing brand namethe category in which product is launched may be related or unrelated to the brand’s current category the brand that gives rise to a new product under its name is called “the parent brand. A product line extension is any new product brought to market that is in the same product category that the firm already produces and markets and a product category is related set of products – such as, dairy products, computer products, furniture, motor vehicles, and so on. Brand extensions can be classified into two : line extensions and category extensions line extensions happen when the brand launches the new product in the same category targeting a new segment through new flavors, added ingredients, package sizes etc.
- (aaker and keller, 1991) line extension involves using the original parent brand name to enter into a new market segment of same product category while franchisee extension involves using original parent brand name to enter into a product category which is new to the company.
- Once a line extension becomes a big success, all the competitors get in line and say, me too without giving a second thought to the possibility of launching a new brand that could clearly define.
- Transcript of new product and brand extension it is a line extension 3 it can use a combination of a new brand and existing brand for example nescafe it is a category extension in this presentation, we will concentrate on product development strategy and diversification strategy - the basic idea or concept of a product development.
In line extension a current brand name is used to enter a new market segment while in franchise extensions a current brand name is used to enter a product category new to the company (tauber, 1981. For developing brands, a company has four choices: line extensions, brand extensions, multibrands or new brands branding decisions – brand development options line extension refers to extending an existing brand name to new forms, sizes, colours, ingredients or flavours of an existing product category. Brand extension 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. Line extension is when you introduce a new product category, like if you are selling shampoo and start selling body wash brand extension is when you sell shampoo under the name x, and then that selling coffee under the name y.