The brand should be a logical fit with the parent brand the parent should give the extension an edge in the new category and the extension should have the potential to generate significant sales. According to byron (1993), the reason why brand extension is so popular is because it can create growth in the cost leading competition, redefine a new direction of a business or firm, gain economic scale in advertising, introduce new products without. In brand extension research, consumers thought contadina pasta was a logical companion product that would have the leverage of the italian heritage of the parent aunt jemima (the pancake mix brand) launched pancake syrup, as a companion to compete with log cabin syrup. For example, a poorly executed brand extension can tarnish the parent brand's image, and a brand extension into a category that doesn't fit appropriately with the original brand promise can confuse even the most loyal consumers causing them to switch to brands that do meet their expectations.
A brand extension is when a company uses its leverage to launch a new product in a different category snickers ice cream bars are a brand extension of the snickers candy bars. Brand extensions that are too much of a departure from the brand's roots can backfire badly they tend to be seen as crass commercialization and can alienate loyal customers emphasizing uniqueness and authenticity. Brand extension: vespa launches its first perfumes piaggio, the italian manufacturer of the iconic vespa brand of scooters, is diversifying into the perfume industry vespa is extending its product range by launching a selection of new vespa fragrance. Hello i am trying to understand why the virgin examples above aren't brand extensions rather than sub-brands as identified it seems like going from a record company to an airplane company is the very essence of a brand extension rather than a sub-brand.
Brand extension helps the parent brand also in many ways first it brings clarity in brand meaning, second brand extension can contribute to the parent brand's association by either adding or strengthening this association (verma, 2002. The haute couture high-priced clothing brand entered a new category (shoes) at a different quality/price level (lower price / lower quality) an example of a horizontal line. The authors find that fit between the parent brand and an extension product is the most important driver of brand extension success, followed by marketing support, parent-brand conviction, retailer acceptance, and parent-brand experience.
There are two types of extension branding options that companies can consider: (1) direct-extension branding and (2) linked-extension branding direct-extension branding with direct-extension branding , the company uses an existing (parent brand) name for a new business or product. 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. Because the extension can dramatically affect a key strategic asset, both in its original setting and in the new context, the wrong extension decision can be strategically damaging this article is an overview of the brand extension decision and its possible outcomes — the good, the bad, and the ugly. Line extension and brand extension address the marketing of commercial goods the brand refers to the recognized product or company name such as kraft, pepsi or apple the way in which the company expands its inventory determines line extension vs brand extension.
Ultimately, this upward extension will be hard to carry out since the value-proposition of the new line is not that unique or strong, while the parent-brand is weakening even if diesel were to gain back its momentum, the efficacy of any upward brand extension would take time to assess. A brand's cultural symbolism can be a liability or an asset, and to harness it profitably, a manager needs to understand the cultural symbolism of the potential extension categories under consideration, the authors write.
The results generated from the service industry can be applicable to other contexts (eg, manufacturing industry, finance industry, real estate industry, etc) remains to be examined moreover, although the positive impact of brand image on customer satisfaction and customer loyalty has. 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. Brand extension into clothing or workwear if you are using brand extension as a method to launch a clothing line, then we can offer our expert team to support you we have worked with companies using a brand extension to leverage their existing customer base and brand loyalty to increase their profits with a new product offering. Segment for clothing brand extension from the car industry in which we have a one of the main reasons why companies use the brand extension strategy brand.