What is a brand extension? Five examples of how to use it
As consumers, we are exposed to and use brand extensions every day without even realizing it. We can be sipping on the latest Pepsi product watching TV, checking out the aisle of frozen foods at the grocery store, or online shopping for a new moisturizer - almost certainly, the product falls under a parent brand as an extension of the original offerings of the company.
What is the reason companies use extension of their brand names? If you think you know the answer then you're correct! Although some businesses thrive on the idea being able to master a single product however the reason that businesses have brand extensions is the fact that they could be very profitable, if they are the company is successful.
What is a brand extension?
Let's get the definition of "brand extension" straight first. From the outside, it sounds like a fancy corporate marketing term, but in reality the definition is pretty simple.
A brand extension occurs when a reputable firm or business begins offering a new service or product that falls into a new category using the name of its brand.
The difference between extension of brand and line extension
Instead of delving deep into the details of each way you can create an extension of your brand for your products (there are plenty) one of the most common ones everyone in the business should be acquainted with are a brand versus an extension of a line. Though they're both kinds of product extensions however, they have a few key differences.
An extension of a brand's line is the time when a brand launches some of its items with a twist . For instance, have you ever thought about Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing with a brand new name - but, it has the appealing flavor that draws fans of Coca-Cola back to taste the product. Line extensions tend to be safer since they are in the same category of product. Sometimes, a brand line extension may also be called vertical extensions because they could also be applied to products that have tiered choices. TVs are a good instance of this because it is possible to purchase the same TV in a different size or even with additional features in a nutshell there are cheaper options or a fancier version within the same brand product.
On the flip side, an extension of a brand is an entirely brand new product within a new product line such as, Dyson Supersonic(tm) hair dryer. Dyson is an example. While it was once a household name for vacuum cleaners, the company used its technology to broaden its product line into the world of beauty by releasing an innovative hair dryer as well as other hair styling tools. The result was big time. In some consumer segments, the public is more aware of Dyson's hair dryers than the new vacuum cleaner. This is also known as a horizontal extension of a brand that is when a brand's parent produces a brand new product underneath it.
Examples of real-world extensions to brands
Like we said earlier, brand extensions are prevalent everywhere in the present. We know we've thrown around a few examples already, but here are five other brand extensions from the real world to reference to help you come up with ideas.
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker that hails from Mexico and is now part of Coca-Cola. It has a recognizable bottle flavor, logo, and taste. Its latest brand extension can be described as Topo Chico Hard Seltzer - sparkling sparkling drink that is spiked. It entered a brand new product category by selling alcoholic beverages and it has had a huge success thanks to the brand's established authority in the beverage space. It's paid off: its latest product was the third-fastest brand for hard-seltzer nationally this year.
- Apple Watches
Apple is a brand that we are all familiar with that brand and probably use or have employed some of its services in the past. Because the company was founded by selling computers, its Apple Watch product is a obvious example of a branding extension. The Apple Watch can be considered to be an upgrade of iPhone and, although initially, it was not a huge success, with a strategic marketing effort and a focus on fitness and health Apple consumers jumped at the chance to purchase the new product. Plus there is that the Apple Watch has a brand line extension as Apple regularly releases updates with different pricing tiers.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in sales in the first year, it became one of the best-performing known brands that were fronted by celebrities. Given the reputable credibility and long-lasting fan base of Fenty Beauty, Fenty Skin was born. Rihanna has launched her skincare line with a deliberate approach; Fenty Skin is marketed as gender neutral and inclusive line of skincare, which stands out from many existing skincare companies. This is a fantastic 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 take a second look. This unlikely pairing resulted in a revolution in the way that customers shop and buy food items. This is an exceptional model of brand extension because, it was the case that when Amazon bought Whole Foods, the grocery chain retained its own brand. However, using Amazon's powerful loyalty program that offers discounts on grocery items The delivery service effectively extended the name into a new category.
- Star Wars Franchise
The industry of entertainment is known for its brand extensions! Sequels, spin-offs, 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, video games, merchandise, and books. There's an even theme park in Disneyland. The Star Wars franchise has generated a loyal customer base and Disney has recognized this , and not only cultivated new audiences around it but profited well from its various product extensions.
What is the best way to create a brand extension as an online business owner
It's not difficult to envision brand extensions in relation to physical goods, for internet-based entrepreneurs, the options for extending your brand are endless.
Craig Beck is an outstanding illustration of an internet-savvy entrepreneur who has used his brand to create several extension of his brand. With the help of , Craig has launched a variety of digital products - not just does he offer extremely popular and successful sobriety coaching, but he has broadened his business to include coaching for personal use and investing coaching! He has successfully extended his coaching brand into different segments, which has enabled Craig to increase his following and revenues.
Developing a brand extension as an online entrepreneur should come in three crucial parts:
- research: We cannot stress enough the importance of research! This is specifically referring to audience research. Conducting a survey of your primary customer base is critical for brand extensions. If you don't have your faithful followers' backing, you'll likely see your product fail. Send a survey out in your area, organize an online focus group or hold a town-hall Instagram live so you can get your audience's opinion.
- Make your HTML0 extension with the brand's parent company in mind:When designing an extension for your company, make sure that you do not dissociate your product from your parent brand. If you're planning to use the same brand name or logo, theme or even a line, you'll want your branding extension to be easily identifiable.
- The beta test Tests for beta are common among digital products and software. Beta tests are when you launch your brand new product or update to a small group of users first to gauge their responses as well as work out any issues or issues, and much more. It's a great opportunity to experiment and get feedback prior to deciding whether you want to invest time and resources in creating a branding extension, which could prove unsuccessful.
One of the best things about the process of testing brand extensions for digital products is that you won't need to spend money - you could offer your website or course completely free of charge without needing to spend manufacturing money on the physical item. This is a win-win.
Words of caution when it comes to extension of brands
We'll be blunt - brand extensions can fail in the event of poor execution. Did you remember the IHOb/IHOP scandal of the year 2018? IHOP expanded its brand offering with new burgers, and making a public relations move, changing their brand's logo from IHOp to IHOb. Although it was a hit, many thought it was more like an April Fools Joke instead of a brand extension. Following the scathing comments of competitors and fans about the brand online, there was no any official recognition with its brand innovative and better product (burgers) and it was a disaster for the restaurant chain.
What can we gain from these failures? Do your research and use your followers as the main source for ideas and digital product launches. Avoid entering into an area where there is less credibility as it can result in a costly loss.
Building your brand and products
If you're an online entrepreneur seeking to expand your brand in the right way by conducting the appropriate study and screening will allow you to design brand extensions that will boost your existing audience and invite new members into your fold.