Products that extend and supplement a companys established product line are called:
Product extension is the strategy of placing an established product's brand name on a new product that is in the same category. Small companies can deploy the practice in the same way that large firms have, in order to increase sales of a popular product by offering variations. But the strategy can also backfire if not used effectively. Show
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Brand extension is a strategy where a company creates a new product category under its well-known brand name. It helps launch new products easily, obtain higher profit, reduce costs necessary to launch a new business, and meet customers’ needs and wants. In this video, you’ll learn what brand extension is and how to leverage it. Why is brand extension important?Increasingly competitive markets make it impossible for a company to stay ahead if it doesn’t present something new to its target audience. Entrepreneurs consider brand extension strategies to increase their market share, become more innovative, and create a new product category. It’s a critical step that helps boost their business and engage new leads. To implement this technique successfully, brands need to study and analyze new trends. With the help of research, companies try to figure out the wants and needs of their prospective customers to create a product that will satisfy these requirements. Afterward, they strive to create a product that will be sold under an established company’s name and remain in high demand. The process brings several benefits to businesses. Corporations obtain an increased brand image, save funds on the development of a new brand, use their costs on promotion efficiently, and gain more revenue. With the help of brand extension strategies, companies can present products that their customers accept. Nowadays, the tactic is popular because businesses can assess their opportunities in new product categories, determine how relevant and appealing their brands are, and define the resource requirements. Now that you know the reasons why many firms use a brand extension, let’s review the advantages of this technique. Advantages of Drand ExtensionIt’s worth noting that brand extension helps upscale your business in various ways. Since the number of competitors in the market is constantly increasing, brands should prepare multiple strategies to stay ahead. Companies can create new products, provide better customer experiences, present some innovations or new services to gain revenue. When you decide to extend your company and create a product or service, it can be related or unrelated to your business. Brands often leverage brand extension because it can:
As you’ve noticed, there is a list of reasons why a company should consider implementing brand extension. Now let’s review the types of this tactic. Types of Brand Extension
There are different ways in which companies use this strategy, so it’s time to walk you through the types of brand extension.
It’s time to proceed to the differences between brand and line extension. By brand extension, we mean an established brand that creates a new product category that is assumed to meet the needs of consumers. In this scenario, a company heavily relies on its loyal customers who will be glad to see more products from a trusted brand. With a successful implementation of brand extension, a firm can reach new demographics, acquire new customers, boost sales, and increase revenue. A line extensionis when a firm extends an existing product line. A manufacturer brings a new product to the product category that a company already manufactures. For example, a brand adds “Vanilla” or “Lemon” flavor to its cola line and creates a variety of products that are available for consumers. Usually, line extension is associated with a product’s new scent, flavor, formula, color, and style in a current product line. The strategy is less risky than a brand extension as consumers are familiar with the product and will be eager to try it with a new twist. Now let’s move to the next section to grab some inspiration from our examples. 12 Examples of Brand Extension
If you consider extending your product category, check out our list of brand extensions that will inspire your own. ColgateA company famous for its toothpaste made a new useful product, a toothbrush that is complementary to the main product. It turned out to be a great combination. This move allowed Colgate to enter the toothbrush market. AppleApple, a technology company that is known for its computers and phones, also used brand extension. You can find Smart Watches and MP3 Players designed by Apple. Coca-ColaIt might surprise you, but Coca-Cola sells not only carbonated soft drinks. The brand also produces Dasani water and Glaceau Smartwater. Source: The DrumStarbucksA well-established company famous for its coffee beverages and unique approach to each of its clients has also entered the energy drinks market. The brand has made a foray into another booming market by launching a new line of low-calorie energy drinks based on fruit juice and green coffee extract. Source: CampaignLifeBuoyLifeBuoy is a brand of soap marketed by Unilever. Over time, the company managed to enter other markets, such as the supply of sanitary towels and sanitizers that are always on hand. Now you can see LifeBuoy’s sanitizers that are ready to ensure your daily hygiene on store shelves. FerrariEveryone knows this luxury sports car manufacturer. However, the brand didn’t limit itself to creating luxurious and expensive vehicles only. The company decided to develop an unrelated product line. Ferrari theme parks in different countries provide visitors with an authentic Ferrari experience, adrenaline, and fun. SunkistThe brand is usually associated with oranges, health, and energy. The company decided to make the most out of it. Sunkist’s production of vitamin C tablets spawned the business of vitamins and supplements. DysonThe company started with the manufacturing of vacuum cleaners and household appliances but further extended its products to desk lamps. Now the brand is popular among young people because of the hairdryers, bladeless fans, and stylers it produces. CallawayCallaway is known for its golf clubs, yet not only for them. This company also manufactures and sells equipment for golf and accessories like bags, gloves, and caps. SendPulseAnother excellent example of brand extension is SendPulse, an email marketing service. The company has also introduced two new products: CRM and landing page builder. Now you can automate your communication with customers and create a landing page or an online store. FenderThe company recognized as a manufacturer of guitars and amplifiers now also produces earbuds. Their products bring dynamic and high-quality sound to their owners. We all know and use Google as a web search engine. Nevertheless, it’s not the only product from Google. The brand extended to hosted email services. Google Workspace empowers brands to access great digital products (Google Drive, Cloud Search, Google Meets, and more) anytime and anywhere and provides security of your information. Source: The FanaticSimply put, when you have an established brand admired by customers and want to release a new product category, just go ahead. It can bring many benefits to your business, such as increased profit and an opportunity to meet your clients’ needs and improve your brand image. If you have an excellent idea for your new product that your audience will accept, give it a try. Resources:
Last Updated: 12.07.2022 What is an extension of a product line?What is a product line extension? Line extensions refers to the process of expanding an existing product line. This is when a company with an established brand introduces additional items in a product category. The company uses the value of the existing product to market and introduce new choices to consumers.
What is a product line called?A product line is a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.
When a company introduces a product line extension it is?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. The strategy behind a brand extension is to use the company's already established brand equity to help it launch its newest product.
What is line extension and brand extension?What is a brand line extension? A company introduces a brand line extension by using an established product's brand name to launch a new, slightly different item in the same product category. For example, Diet Coke™ is a line extension of the parent brand Coke™.
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