This is the definition and examples of brand extension
Brand extension is a marketing strategy in which a firm that markets a product with a well-developed image uses the same brand name but in a different product category. Brands use this as a strategy to increase and leverage equity (definition: the net worth and long-term sustainability just from the renowned name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category. However, a brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from just clothing to home furnishings like bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess.
2007-02-11 02:40:45
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answer #1
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answered by Josh 3
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When companies extend their product into new, untapped markets, or position their product for a new use, it's often referred to as brand extension.
For example, Toyota extended its brand into the higher end luxury auto market through its Lexus brand.
A campaign, "Orange Juice isn't just for breakfast" extended the consumption of orange juice, not just for breakfast people, but for markets of people that consume drinks in general.
Levis extended its jeans brand by manufacturing Levi shirts.
Extending your brand into new markets works if you've already developed credibility in the market you currently occupy - or if you extend your brand into a related field where you've already demonstrated competence.
Years ago, Exxon extended its brand into office products and it was a disaster.
2007-02-11 07:56:49
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answer #2
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answered by Anonymous
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