What's a brand's extension? Five ways to utilize it
As consumers, we have to be exposed to and usage of brand extensions every time, and we don't even realize it. There's no need to worry about drinking a brand new beverage from Pepsi when watching TV, or exploring the frozen aisles of products at the store or online searching for a new moisturizer - most likely the product fits under the parent brand, and it's an expansion of the services the original product offered.
What is the reason companies use brand extensions? If you think that you have the answer, then it's true! Some companies are successful due to being able to master just one item, but the principal reason brands have extensions to their name is due to the fact that they're very profitable in the event that they're profitable.
What's a brand extension?
Let's get the definition of "brand extension" in the first place. It appears to be a complex corporate marketing phrase, but it's really quite simple.
A branding extension occurs when a well-established business or organisation starts offering a new service or a product in an entirely new market with the brand name.
The distinction between line extension and brand extension
Instead of delving in the finer details of every method you could create extensions to your product (there are plenty) Two main types that every businessperson ought to be familiar with are the brand name and an extension of a product line. While they are both forms extensions for your products There are some key differences.
Brand line extensions are where the brand launches an item with a twist . Have you heard the name Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing that's been reformulated with a enticing taste that will draw people who love Coca-Cola back to taste it. In general, line extensions are more secure since they're in the same category of the product. Sometimes, a brand line extension could be called vertical extensions as they may be applied to items that have tiered choices. TVs are a great illustration of this since they are available in a TV that has an additional dimension, or featuring additional functions. In a nutshell, you can pick more affordable alternatives or an upgraded version of the same product.
On the other hand, the extension of a brand could be an entirely different product in an entirely fresh line of products, for example, Dyson Supersonic(tm) hair dryer. Dyson provides a wonderful example. Initially, it was only known for its vacuum products, the company utilized its know-how in the field of technology to broaden its range of products to the cosmetics industry through the release of an ingenious hair dryer, as well as other hair styling tools. This paid dividends. There are certain segments of the population where more people now know about Dyson's hair dryer than the latest model of vacuum cleaner. It's also known as an extension horizontal of an existing brand. This is when an established brand creates the brand's new products within it.
Experiments with real-life extensions of brands
We've mentioned before that brand extensions are everywhere at the moment. We know we've thrown around several examples in the past. Here are five other brand extensions from the world of reality for inspiration:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water manufacturer that originates from Mexico and now is an integral part of Coca-Cola. It's identifiable by its bottle , which has a distinct taste and logo. The latest extension to the brand is defined as Topo Chico Hard Seltzer - sparkling water that has been spiked. It entered a brand new category of products that contain alcohol and has seen major successes due to its well-established authority in the area of drinks. This has paid off as its brand new drink was the third fastest hard-seltzer product sold across the country in the year 2000.
- Apple Watches
Apple We all have heard of the brand, and probably have used or engaged in some of its products at some point in the past. Since the company originated as a computer company, its Apple Watch product is a perfect example of brand extension. It is an expansion of the iPhone Though initially, it didn't turn out to be an instant achievement until a clever marketing approach and a focus on health and fitness, Apple users jumped on an opportunity to buy the brand new item. It is also the case this Apple Watch has a brand line extension of its own due to the fact that Apple regularly releases updates featuring different price levels.
- Fenty Skin from Rihanna
- Amazon as well as Whole Foods
In the event that Amazon bought Whole Foods, everyone did consider a second glance. But, this unlikely combination altered the way that people shop and buy groceries. This is a unique example of brand expansion since it was the case that the moment Amazon purchased Whole Foods, the grocery chain retained its own brand. But, by utilizing Amazon's loyalty program that offers discount for food products and delivery options Amazon successfully extended its name to a new market.
- Star Wars Franchise
The entertainment industry is known for brand extensions! Sequels, spin-offs, and television adaptations are all methods that companies in the entertainment industry develop brand extensions. Star Wars is a great example with several different series and franchises, as well as video games as well as books, merchandise and other products. The theme park is situated at Disneyland. The Star Wars franchise has generated a huge number of loyal fans and Disney recognizes this and did not just build new fan bases around the franchise, but also made a profit from its many product improvements.
HTML0 What's the ideal method to make an extension of your name's brand as an owner of a business online
It's easy to imagine brand extensions in relation to physical items, and for online entrepreneurs there are endless possibilities for expansion of your business are endless.
Craig Beck is one of the best examples of an online knowledge-based entrepreneur that uses his name to establish a number of extension for his brand. Utilizing , Craig has launched a range of digital services - not only does he provide an extremely well-known and popular addictions coaching, but he's expanded the scope of his brand to include private investing and coaching! Craig is able to broaden his brand of coaching into various categories which has allowed him to grow the number of people who follow him as well as the revenue he earns.
Making a brand extension an online entrepreneur should come from three essential elements:
- research: We cannot stress enough how important research is! Particularly, we are referring to the study of your target audience. The research of your most loyal customers is essential for brand extension. Without their loyal loyalty it is likely that you'll discover that your brand will fail. You can send out a survey to your local area, or organize online focus groups or have a town-hall Instagram live so you can find out what your customers think.
- Create with your parents image with your parent brand in mindWhen making an extension for your company, be sure you don't distance the product from the parent company. If you're looking to use the same name for your business, themes, logos, or even a line it is important for your extension to be noticed.
- The test for beta tests for beta are common for digital products and software. The beta test happens when you launch your brand new application or update to a small group of people first to test their reactions, work out any issues, and more. It's a great method to experiment and gather feedback before deciding whether you want spend your time and resources on the development of an entire brand extension which may not be profitable.
One of the advantages of the procedure of testing brand extensions of digital goods is that it isn't necessary to spend money. It is possible to offer your program or membership to your site for free without the cost of making physical products. This can be a win-win.
A word of caution in relation to extensions for brands
Let's be honest - extension of brands can be disastrous when done badly. Are you aware of the scandal of IHOb/IHOP in the year 2018? IHOP extended its brand by providing new burgers, and, as a publicity move making their logo change to IHOb. Although it garnered much attention, many thought that it was more of an April Fools Joke instead of a brand extension. While fans and competitors made fun of the company through the web, there was no an official acknowledgement with its brand new and enhanced product (burgers) which resulted in embarrassment for Restaurant chain.
What lesson can we learn from these failures? Learn from your customers and make them as the main source of innovative ideas as well as online product launches. Be cautious when you venture into unfamiliar areas where there is less authority because they could cost you.
HTML1 Growing your brand and products
If you're an entrepreneur the internet seeking to expand your business in the correct way, completing the right study and screening will allow you to develop the extension of your business to increase your customers and draw new people to join your group.
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