brand extension

What is mean by brand extension?


Brand extension consists in using an already established brand to launch a new product belonging to another category or a similar product with different characteristics, in order to facilitate its acceptance by consumers.

This strategy allows companies to save large investments that would be necessary for the promotion of a new brand, but also to offer consumers a complementary product solution  –  allowing the combination of various products of the same brand – in response to further needs of the same. target , which can be a strength and increase the competitive advantage branding agency melbourne.

However, it is possible to distinguish two broad categories of brand extensions:

line extension ;

category extension .

The first concerns the use of a brand to launch a new product belonging to the same category as the parent brand and usually leads to the introduction of a similar product but with different characteristics such as color, shape or flavor; the second concerns the use of the parent brand to launch a product belonging to a different category . As Mario Siglioccolo explains in the book “ Corporate communication management . Increase the reputation to attract  resources “, in the first case” the brand is associated with a new product variant, in order to enrich the range offered in depth ” and naturally addressing a different target.  In the case of category extension, on the other hand, an attempt is made to ” satisfy complementary needs for the same target segment of customers as the brand of origin”.

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Similar products with a different “ shape ” compared to those of the parent brand. Think, for example, of a company that produces chocolate bars and that decides to launch on the market the ice cream version to be eaten with the spoon of the product.

Distinctive taste / smell / component / ingredient that the brand “owns” or that somehow identifies it and that is implemented in a new product. A brand that sells peanut butter might think about making ice cream that tastes like this.

A distinctive attribute or benefit associated with the parent brand is implemented in a new product. It happens when a brand of deodorants known for their “refreshing” or “eliminates odors” formula creates a new product to perfume the home, therefore with the same benefit but for rooms.

Distinctive competence linked to the brand and transferred to a new product.

It occurs when a brand known for specializing in the production of baked desserts, for example, launches other baked products, such as bread, on the market.

Complementary products . An example is a toothpaste brand that decides to launch other products useful for oral hygiene such as toothbrushes or mouthwash.

Sometimes a brand uses its own product to launch other “more elaborate” ones as well: if it sells packs of chocolate chips, it may decide to launch cookies with those same nuggets.