What's a brand extension? Plus 5 ideas for inspiration
We as consumers see and utilize brand extensions each and without even knowing it. We can be sipping on a new Pepsi-owned product while watching TV, browsing the aisles of frozen food at the store and online searching for a new moisturizer - almost certainly, the product falls under a parent brand and is an extension of what they originally provided.
Why are companies using extension of their brand names? If you think you know the answer then you're correct! Although some businesses thrive on the idea having a product that they can master, the real reason businesses have brand extensions is that they can be very profitable, if they are the company is successful.
What is a branding extension?
Let's get the definition of "brand extension" straight first. On the outside, it appears to be a fancy corporate marketing term However it's quite simple.
Brand extension is when a branding extension occurs when a reputable firm or business begins selling a brand new item or offering in a new category using its brand name.
The distinction between line extension and brand extension
Instead of delving into the nitty-gritty of every method to create an extension to your brand products (there are plenty) The two main ones that everyone in the business should be acquainted with are a brand versus the line extension. Although they're both types of product extensions, there are a few important distinctions.
A brand line extension is where a brand releases some of its items with a twist . For instance, have you ever heard of Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing with a brand new name and it's got an enticing flavor to draw Coca-Cola's loyal audience back to sample it. Line extensions tend to be more secure since they're part of the same product line. In some cases, a line extension can also be referred to as an extension that is vertical because it is also applicable to items which have tiered alternatives. TVs are a good example of this as they can be purchased as a television in different sizes or one with more features for example, you can choose more affordable options or more expensive versions of the same model.
On the flip side, the brand extension can be an entirely brand new product within the form of a brand new line of product - we're looking at you, Dyson Supersonic(tm) hair dryer. Dyson is an excellent instance. While it was once a household name for vacuum vacuums, the business used its technology to broaden its product line into the beauty industry by releasing an innovative hair dryer as well as other hair styling tools. It paid off hugely. For some segments of the market, the public is more aware of Dyson's hair dryers than the latest vacuum cleaner. It's also known as a horizontal extension of a brand - where a parent brand develops a completely different product beneath it.
Real-life brand extension examples
Like we said earlier, brand extensions are prevalent everywhere nowadays. There are many examples we've used. a few examples already and here's five more real-life brand extensions to reference to help you think about your own ideas:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker from Mexico and now is controlled by Coca-Cola. It is recognizable by its bottle flavor, logo, and taste. Its latest brand extension can be described as Topo Chico Hard Seltzer - sparkling sparkling drink that is spiked. The brand has entered a new market segment by selling alcoholic beverages and it is enjoying great success thanks to its reputed authority in the field of beverages. The investment paid off as its new product was the third fastest brand of hard seltzer sold nationally last year.
- Apple Watches
Apple - we all know the brand, and we most likely have used or had utilized its products in the past. Because the company was founded with a line of computers and smartphones, the Apple Watch product is a perfect example of branding extension. The Apple Watch can be described as an extension of the iPhone Although at first, it was not a huge success but after a smart marketing campaign and an emphasis on health and fitness, Apple customers jumped on board to purchase the brand new device. In addition, Apple Watch is an extension of the iPhone. Apple Watch has a brand line extension since Apple regularly releases updates with different pricing tiers.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in sales during the initial year. it was one of the best-performing known brands that were fronted by celebrities. Given the reputable reputation and strong following that is Fenty Beauty, Fenty Skin was launched. Rihanna introduced her skin care brand in a strategic way; Fenty Skin is marketed as gender-neutral and all-inclusive skincare line - which is different from many existing skincare companies. This is an excellent illustration of an extension of the brand which has brought a wider market to a brand's parent.
- Amazon as well as Whole Foods
When Amazon purchased Whole Foods, everyone did a double-take. However, this unorthodox combination ended up revolutionizing how people buy and order groceries. It is a unique model of brand extension because, when Amazon purchased Whole Foods, the grocery chain kept its own branding. But, by utilizing Amazon's loyalty program that offers discounts on groceries and delivery services, the company successfully extended its name into a new category.
- Star Wars Franchise
The entertainment industry is known for brand extensions! Spin-offs, sequels, and adaptations to TV are just a few ways that entertainment companies develop brand extensions. Star Wars is a great illustration with a variety of television shows, franchises videos, games, books, merchandise, and an even theme park in Disneyland. The Star Wars franchise has been able to create loyal fans and Disney has recognized this , and did not just create new fan bases within it, but also made a profit through its numerous product enhancements.
What is the best way to create an extension of your brand name for an online-based entrepreneur
It's not difficult to imagine extension of your brand in connection with physical goods, for internet-based entrepreneurs, the options for the expansion of your brand are endless.
Craig Beck is an excellent illustration of an internet-savvy businessman who's used his name to develop a variety of brand extensions. Using , Craig has launched a number of online products not only does he have the most popular and popular addiction coaching services, but he's also broadened his business to encompass personal coaching as well as investment coaching! He has successfully extended his brand of coaching into various categories which has allowed him to grow his audience as well as his revenue.
The process of developing a brand extension for an online entrepreneur should come in three crucial parts:
- Research: We cannot stress enough the importance of research! And we specifically mean the research of your audience. The research of your most loyal customers is essential for brand expansion. Without their loyal support, you can most likely see your product be a failure. You can distribute a poll to your community, lead an online focus group, or have a town-hall Instagram live so you can gather the opinions of your followers.
- Make your HTML0 extension with the parent brand in mind:When designing the extension of your branding, make sure that you do not dissociate the product from the parent brand. If you're planning to use the same name for your brand as well as logo, theme, or even a line, you'll want your brand extension to be recognized.
- The beta test Tests for beta are common among digital products and software. Beta tests are when you make your version or upgrade to a limited sample of customers first, to observe their reaction as well as work out any issues or issues, and much more. It's a great method to try out the product and gather feedback before you invest time and resources in creating a brand extension that could be unfavorable.
The most appealing aspect of testing a new brand extension for digital products is that you'll hardly have to spend money - you can offer your new program or site membership completely free of charge without needing the expense of manufacturing the physical item. It's the win-win.
Words of caution in relation to brand extensions
It's a fact that brand extensions can fail when done badly. Do you remember the scandal of IHOb/IHOP in the year 2018? IHOP expanded its brand offering with new burgers, and also, as a publicity stunt, changing its image to IHOb. While it garnered attention however, some thought it was more of an April Fools Joke instead of a brand extension. Following the scathing comments of competitors and fans about the business on the internet, there was no public announcement of the success of its new and improved product (burgers) and the whole thing ended in embarrassment for the restaurant chain.
What lesson can we learn from these failures? Conduct your own research and consider your customers as the primary source of new ideas as well as digital product launches. Avoid entering into a new niche where there is less credibility - it could result in a costly loss.
Building your brand and product
If you're an entrepreneur on the internet trying to grow your business in the right way doing the proper research and vetting will enable you to create branding extensions that increase your current audience and bring new customers into your ranks.