The role of brand extension

A weak or nonexistent association can result in the opposite effect, brand dilution. Even worse, if a brand extension is unsuccessful, it can harm the parent brand. There are many ways companies can extend the popularity and reputation of their brand into new territories. Brand extension can be as natural as offering an original product in a new form.

The role of brand extension

This new category to which the brand is extended can be related or unrelated to the existing product categories.

BREAKING DOWN 'Brand Extension'

But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. Brand extension may be successful or unsuccessful. Instances where brand extension has been a success are- Wipro which was originally into computers has extended into shampoo, powder, and soap.

Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

Marketing Dissertation | Brand Extension | Market Research | Strategy | Consumer

Instances where brand extension has been a failure are- In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola.

Oranjolt was a fruit drink in which carbonates were used as preservative. Oranjolt need to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five months.

Advantages of Brand Extension Brand Extension has following advantages: It makes acceptance of new product easy. It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.

The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced.

10 Examples of Successful Brand Extensions:

There are economies of scale as advertising for core brand and its extension reinforces each other. Cost of developing new brand is saved. Consumers can now seek for a variety. There are packaging and labeling efficiencies. The expense of introductory and follow up marketing programs is reduced.

There are feedback benefits to the parent brand and the organization. The image of parent brand is enhanced. It revives the brand.brand, the more positive is the extension evaluation and the greater is the gain from introducing the new product as a brand extension than under a new brand name (Keller ;.

When a brand's concept is consistent with those of its extension products, the prestige brand seems to have greater extendibility to products with low feature similarity than the functional brand does.

Oct 25,  · One of the most common growth strategies marketers employ is a brand extension. Whether it’s extending a line of products, like Coke to Diet Coke, or extending a brand . Moreover, all three dimensions of parent brand quality constitute distinct drivers that should be considered when managers assess the chances of service brand extension success, with outcome quality having the strongest impact on service brand extension .

Drawing on categorization theory, this empirical study focuses on the critical role of congruency in prototypical brand extensions. A survey, measuring reactions to 18 proposed extensions involving six well‐known brands (Xerox, Kleenex, Band‐Aid, Scotch Tape, Coke, Sony Walkman), was administered to a sample of graduate students.

Abstract. Brand extension forms an important part of marketing strategy for many companies.

The role of brand extension

Brand extension reduces the risk of launching a new brand in the marketplace by leveraging on familiarity and consumer acceptance of an established brand.

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