Brand Extension
What Is the Whole Extension and the Way It Will Work?
When a firm applies one among its established whole names on a brand new product or new product class, this is often called a whole extension. It is also stated as "brand stretching." A whole extension strategy is to invest a company's existing whole equity to assist within the introduction of a brand new product. The corporation is banking on current consumers' whole loyalty, that it expects can build them additional hospitable new services from an equivalent company. A whole extension might facilitate a firm to reach new demographics, grow its shopper base, enhance sales, and lift overall profit margins if it's effective.
TAKEAWAYS vital
The launch of a new a replacement a whole new product that depends on the name and name of an existing product is understood as brand extension.
When the first and new things share an analogous feature or attribute that the client will promptly recognise, the whole extension works.
When the new product is unconnected to the first, it's perceived as a match, or it even produces a negative connotation, the whole extension fails.
What is the method of brand name Extension?
A whole extension takes use of a well known product's name, popularity, and whole loyalty to launch a brand new product. To achieve success, the previous product and also the new item should have a logical relationship. whole dilution will occur as a result of a weak or nonexistent link. This may even be damaging to the parent company's name.
Companies will diversify their offerings and increase market share by extending their brands. they'll offer a competitive edge over competitors that don't offer equivalent things. For the new product, this whole functions as an efficient and cheap selling tool.
Apple (AAPL) is AN example of an organization that has with success used a whole extension strategy to drive growth within the past. beginning with its well-known mack computers, Apple has used its whole to sell things in new classes, as proved with the iPod, iPad, and iPhone.
IMPORTANT :Companies United Nations agency area unit able to with success extend their whole area unit same to cash in on the halo result, that permits them to introduce new things supporting the favourable opinion customers have of their product.
Brand Extension within the world
Offering the first product in an exceedingly new type is one example of brand name growth. The Bean Town Market chain, as an example, has established a frozen meal line beneath its own whole that gives comparable dishes.
Another style of whole extension is once 2 well-known things area units combined. Breyers frozen dessert with cookie items could be a combination that depends on client devotion to 1 or each of the first brands.
Brand extension can also be accustomed to extend a whole to a brand new product class. Google's primary business is search, however it conjointly offers a range of non-advertising products and services, like the Play Store, Chromebooks, Google Apps, and also the Google Cloud Platform.
In the best cases, the whole growth is organic and stems from a well known sensible facet of the first product. Arm & Hammer sells a deodorising cat litter beneath the Arm & Hammer whole. Children's toy tools area unit created by Black & Decker. A ready-mix is offered from Ghirardelli Chocolate Company. The whole growth is the production of complementary things. Coca-Cola comes in an exceedingly type of tastes and kinds.
Brand Extension Criticism
The cost of launching a product via whole extension is a smaller amount than the value of launching a new a replacement a whole new product with no brand identification. The message is communicated via the first whole.
When the merchandise lines unit a transparent match, however, whole expansions fail. It's potential that the new product's name might shed an unfavorable light-weight on that. whole managers should assess their target demographic and that things work well beneath their company's whole before emotional a brand new product.
In the early Eighties, distinguished jeans maker Levi Strauss & Co. selected to provide a line of toilet facility three-piece suits beneath the sub-brand Levi's Tailored Classics, which proved to be a failure. The road was terminated after years of weak sales. Consumers' read of the whole united relation related to rough casual wear instead of work garments was too robust for the corporation to beat. Levi's, on the opposite hand, learnt from its error and created Levi's Dockers, a whole of casual khaki pants and different toilet facility attire that has been endless high merchant for the firm since 1986.1
