What's a brand's extension? Five examples of how to make use of it
We get exposed to and use extension of brands every single day, without even knowing it. No matter whether we're drinking an exclusive Pepsi brand when we watch TV or browsing through the frozen aisle of the store, or online buying a new moisturizer, it's likely that the item falls into a parent brand that extends the original offerings of the firm.
What is the reason companies use extension of their brand names? If you think it's due to money, it's actually! While some companies thrive off being able to offer a service that they are able to master but the main reason companies use brand extensions is that they can be extremely lucrative if they're effective.
HTML0 What is an extension of branding?
Let's set the meaning that is "brand extension" clear first. It may sound like a complex corporate marketing phrase however, in actuality, it's pretty straightforward.
An expansion of an established brand takes place when a respected company or firm starts selling a new product or product that falls into an entirely new market under the name of its brand.
The distinction between brand extension and line extension
Instead instead of getting involved in the finer details of every way you can develop an extension for your products that you have created (there are numerous) The two most common ones that every businessperson ought to be familiar with are brand extensions and extensions of lines. While they're both forms of product extensions there are a few fundamental differences.
Brand line extensions are the moment when a brand introduces a product with a new twist. Did you know about Coke Zero Sugar or Diet Coke which contains Lime? It's exactly the same thing however it's a completely new product with appealing flavors which will entice the faithful customers of Coca-Cola to try the drink. Line extensions generally are more secure since they're part of the same product line. However, in some instances an extension line could also be called vertical extensions as they may also be used to describe products with tiered choices. Televisions are an example of this because it is feasible to purchase the exact TV in various sizes, or even with additional functions. It is possible to select cheaper options or upgraded versions of the exact product.
However, the extension of the brand could represent a totally separate product, which forms an element of a brand new range of products, like the Dyson Supersonic(tm) hair dryer. Dyson is an excellent instance. Once only known for its vacuum vacuums, the business utilized its technological know-how to expand its products into the industry of cosmetics with the introduction of the most innovative hair dryer, as well as different hair styling tools. The results were hugely. For some markets, consumers are more familiar with Dyson's hair dryer than its latest vacuum cleaner. This is often referred to as a horizontal brand extension that is when the parent company develops an entirely new product under it.
HTML0 Experiments using actual-world extensions to brands
We mentioned before that extension of brands is commonplace today. There's probably been a few examples already and we've got five other real-world brand extensions that you can use for inspiration to think of the possibilities for your own thoughts:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker from Mexico which is now part of Coca-Cola. It is a well-known flavor, logo as well as the taste. The most recent addition to the company can be found in Topo Chico Hard Seltzer - sparkling, sparkling beverage that has been spiked. It entered a brand new product category with alcohol-based drinks, which has been a huge success thanks to its reputed authority within the drink industry. It paid off - its new product was the third fastest hard seltzer company selling nationwide in the year.
- Apple Watches
Apple Everyone has heard of that brand and most likely have used some of its products previously. Since the company was established as a computer company as well, it's Apple Watch product is a excellent example of brand expansion. It is a perfect example of brand extension. Apple Watch can be seen as an upgrade of iPhone - while at first, it's success was slower However, following an extensive marketing campaign, and an emphasis on health and fitness, Apple users jumped on the opportunity to buy the brand new device. Additionally, it's its own case because it's a brand new product. Apple Watch has a brand line extension because Apple continually releases new products that come with various price ranges.
- Fenty Skin by Rihanna
- Amazon and Whole Foods
In the event that Amazon bought Whole Foods, everyone did take a second look. This unorthodox mix resulted in a revolution of how people shop for and purchase food items. This is an exceptional case of branding extension because when Amazon purchased Whole Foods, the grocery chain retained its own brand name. With the help of the loyalty program offered by Amazon to earn discount on groceries, the delivery service was able to expand its brand into a brand new market.
- Star Wars Franchise
The entertainment industry is known for brand extensions! Spin-offs, sequels, and adaptions to TV are only a handful of methods that companies that are in the field of entertainment create brand extensions. Star Wars is a great model with multiple television shows, franchises and games. There's also products, as well as books. The Star Wars theme park is also available. themed theme park located at Disneyland. The Star Wars franchise has generated a loyal customer base and Disney recognizes this, and have not just created new fan bases around it but profited well from various expansions to its merchandise.
What can you do to create an extension of your identity for an online-based business
It's easy to envision branding extensions that are related to tangible items. For entrepreneurs who operate online, the options of expanding your brand's reach are endless.
Craig Beck is the ideal example of an internet-savvy businessman who's used his name to develop a variety of extensions for his business. With the help of , Craig has launched a range of online products not just does he offer a well-known and sought-after addiction coaching service, but he's also broadened his services to include private coaching, as well as investing coaching! Craig has been able to expand his coaching brand into different areas, which has enabled him to grow his audience as well as his revenue.
Making a brand extension an online business owner should be completed using three important components:
- The research aspect: We cannot stress enough research! This is specifically referring to the research of your audience. Your research with your loyal customers is vital to the expansion of your brand. If you don't have your followers' backing, you'll be sure that your product will flop. Send a survey out to your local area, set up an online focused groups, or even hold a town-hall Instagram live event to collect the opinions of your followers.
- The HTML0 extension should be created in conjunction with the parent company of your brand keeping in mind the following:When creating the extension of your branding it is important to ensure you do not separate the product from the parent brand. If you'd prefer to use the same brand name as well as logo, theme or product, you'll want the extension of your brand to be recognized.
- The test for beta Beta tests are common in digital goods and programs. Beta tests occur after you create an upgrade or version for a set group of users to see their reactions as well as work out the issues and other problems. It is an excellent way to test the waters and get feedback prior to deciding whether you want to invest time and resources in expanding your business that could fail.
One of the most appealing aspects when you try a branding extension using digital products is that you won't need to purchase it. Instead, you could offer your program or membership to your site for free and without the expense making a physical item. This is a win-win situation.
A word of caution regarding expansion of brands
We'll be honest, the expansion of brand names can be disastrous if done poorly. Remember the IHOb/IHOP debacle of 2018. IHOP increased its branding through the introduction of new burgers as well as, in an attempt to gain publicity, changed its logo to IHOb. Though it received a lot of attention but many people thought it was more like an April Fools Joke instead of an extension of the brand. Following the scathing comments of competitors and fans about the company through social media channels, there was no official achievement with the new and upgraded new products (burgers) which is why the whole incident caused embarrassment to the restaurant chain.
What can we learn from these errors? Conduct your own research and utilize your customers as the primary resource for new ideas and digital product launches. Be careful of venturing into an area that you're not familiar with or have little authority. It can cost you.
Growing your brand and the product you sell
If you're an online entrepreneur looking to expand your business, by doing the right research and analyzing will allow you create brand extensions that expand your existing customer base and draw new ones into your circle.
This post was posted on here