When launching a new product, it is better to pursue a brand extension strategy, than to develop a new brand brand extension is a brand strategy which using the existing brand name to develop a new product or enter into a different product category market or industry. 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 . Brand extension the benefits and pitfalls knowledge and experiences of the established brand recently launched two new products using brand extension: new .
The use of the established core brand name on the new brand extension product provides automobile manufacturers make frequent use of vertical brand extensions . brand extension & brand stretching the two options for doing this are usually called “brand extension” and “brand stretching” brand extension brand extension is a strategy in which a firm launches a new or modified product with a well-developed image by using the established brand name in a same broad market. Brand extensions a brand extension occurs when a firm uses an established brand name to introduce a new product (approaches 2 or 3) when a new brand is combined with an existing brand (approach 3), the brand extension can also be called a sub-brand an existing brand that gives birth to a brand extension is the parent brand if the parent brand .
Brand extension, also known as brand stretching, is the use of a well-established brand name for a new product or new product category. Extension as using a successful brand name to launch new or modified products in a new category verma (2002) also defined brand extension as using an existing brand. An instance of using an established brand name or trademark on new products, so as to increase sales is called brand extension there are eight types, each has its own unique type of leverage 1 .
Brand extension involves using an existing brand name in order to promote a new product or a service in a different category it is a successful branding strategy to enter into a different product category with low promotional costs and high success rate. Brand extension is using an existing brand name: generally an established one and using it with new generally unrelated product caterogory page on brandingstrategyinsidercom : exide batteries going into exide insurance. Brand extension is one of the new product development strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity   while there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely . ³brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category´ brand extension is the use of an established brand name in new product categories this new category to which the brand is extended can be related or unrelated to the . Many companies seek to capitalize on profitable brands and exploit their brand equity by introducing brand extensions, which are new products introduced under an existing brand name (known as the parent brand).
Sub branding and brand extension are both brand strengthening exercise sub branding is used when brand is entering in new market segment in the same product class . “brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category” brand extension is the use of an established brand name in new product categories this new category to which the brand is extended can be related or unrelated to . A product line extension is the use of an established product's brand name for a new item in the same product category line extensions takes place when a company stretches its product line and introduces extra items in the same product category under the same brand name for example new nips, forms, colors, added ingredients, package sizes. Introduction of new productsthe three choices of a firm when they areintroducing a new product • new brand for new product • use of existing brand for the new product • combination of the new brand with the existing brand (second and the third options are related to brand extension). Brand extension: advantages and disadvantages of brand extension brand extension refers to the use of a successful brand name to launch a new or modified product in the same broad market a successful brand helps a company enter new product categories more easily for example, fairy (owned by .
Advantages and disadvantages of brand extension strategy ii21 advantages of brand extension strategy established names into new product fields” leslie de . How to establish a world-class corporate brand licensing program the ability of an established brand to extend to a leading global brand extension agency and part of the diversified . Brand extension makes it possible for a new product to be launched at lower cost by using informational leverage provided by an established brand name [peckman (1971)] this.
Why some brand extensions are brilliant and others are just awkward by brad tuttle @bradrtuttle feb 07, 2013 a brand extension can be a huge hit, . Brand extension, also named as brand stretching, is using an established brand name to enter a new product category (aaker and keller, 1990) brand extension is sometimes a choice full of risks, as can be seen in the high percentage of failure examples. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different . A well-planned and well-executed brand extension can benefit from what’s known as the halo effect wherein the established brand promise and brand image of the parent brand carries over to the brand extension automatically.
According to oxford dictionary brand extension is an instance of using and established brand name or trade mark on new products the main purpose is increase sales . Brand extension is the use of an established brand name in new product categories this new category to which the brand is extended can be related or unrelated to the existing product categories a renowned/successful brand helps an organization to launch products in new categories more easily for . The use of brand extensions which is when established brand equity automatically carries over the extension this allows the brand extension to achieve success . A brand extension can be defined as using an established brand to introduce a new product the theory is that having an established brand will ease entry into the market for new products and will reduce the costs associated with advertising do to brand.