Brand Extension: Definition, Examples, Strategies for Business
Posted: Tue Dec 03, 2024 3:53 am
Brand extension is an effort made by many companies to stay in existence and develop their business. You can apply this marketing strategy if you want to maintain your name and expand your brand reach .
Brand extension is not an easy strategy for companies to implement. Therefore, learn more about brand extension, types, examples, and strategies for implementing it in the article below!
What is Brand Extension?
In running a business, companies or brands always innovate to expand their reach. Not only that, companies also create strategies so that they can continue to grow and develop more optimally. One of the efforts that companies can do is by doing brand extension.
So, what is brand extension ? Brand extension is a company strategy to create and introduce new products or brands . This strategy, also known as brand extension, is one of the efforts to develop a business.
When creating and introducing a new product or brand , the company uses the reputation it already has. This will certainly make it easier to introduce the product and implement promotional strategies later. The audience already knows the core brand or company so they don't feel too unfamiliar with the new product being launched.
You can also form a brand extension based email list on the needs or demands of consumers or existing markets. For example, your company is a manufacturer of adult shoes, then finds a need for children's shoes. Based on that, your company also releases a new product line in the form of children's shoes.
But it is important to understand that implementing brand extension is not a simple thing. It requires careful consideration based on research on the audience and current trends. Not only that, but also pay attention to the resource aspect of the company, both human resources and capital to create new products.
Therefore, doing brand extension is not something that can be done carelessly and without careful consideration. Don't let a new product or brand actually make the reputation of the business you have built bad.
But with the right strategy, you can implement brand extension and get maximum benefits. Brand extension itself can provide various benefits for your brand and business as a whole. What are the benefits? Check in the next section, okay!
Benefits of Brand Extension for Business
As previously reviewed, the benefits of brand extension for business are numerous. Here are some of the benefits that can be obtained from implementing brand extension.
1. Increase Sales
One of the main benefits of doing brand extension is that it can increase the overall sales of the brand or company. By expanding the scope of the brand into new product categories, the company can attract different customers. This can certainly increase the sales volume and profits of the company.
2. Increase Brand Awareness
The next benefit is that it can help increase brand awareness so that your brand is better known. This can form top-of-mind awareness of consumers towards your brand . In addition, consumers will also find it easier to identify and remember brands or products in the market.
3. Increase Consumer Loyalty
By expanding the brand into new product categories, companies can provide a positive consumer experience across product categories. Especially if the brand releases products based on consumer needs or interests. This can help build a stronger relationship between the brand and consumers and increase loyalty.
4. Improve Brand Reputation
By expanding new product categories, companies can prove the quality and reliability of the brand itself. This can help improve the brand's reputation and make the brand more trusted by consumers.
Brand extension is not an easy strategy for companies to implement. Therefore, learn more about brand extension, types, examples, and strategies for implementing it in the article below!
What is Brand Extension?
In running a business, companies or brands always innovate to expand their reach. Not only that, companies also create strategies so that they can continue to grow and develop more optimally. One of the efforts that companies can do is by doing brand extension.
So, what is brand extension ? Brand extension is a company strategy to create and introduce new products or brands . This strategy, also known as brand extension, is one of the efforts to develop a business.
When creating and introducing a new product or brand , the company uses the reputation it already has. This will certainly make it easier to introduce the product and implement promotional strategies later. The audience already knows the core brand or company so they don't feel too unfamiliar with the new product being launched.
You can also form a brand extension based email list on the needs or demands of consumers or existing markets. For example, your company is a manufacturer of adult shoes, then finds a need for children's shoes. Based on that, your company also releases a new product line in the form of children's shoes.
But it is important to understand that implementing brand extension is not a simple thing. It requires careful consideration based on research on the audience and current trends. Not only that, but also pay attention to the resource aspect of the company, both human resources and capital to create new products.
Therefore, doing brand extension is not something that can be done carelessly and without careful consideration. Don't let a new product or brand actually make the reputation of the business you have built bad.
But with the right strategy, you can implement brand extension and get maximum benefits. Brand extension itself can provide various benefits for your brand and business as a whole. What are the benefits? Check in the next section, okay!
Benefits of Brand Extension for Business
As previously reviewed, the benefits of brand extension for business are numerous. Here are some of the benefits that can be obtained from implementing brand extension.
1. Increase Sales
One of the main benefits of doing brand extension is that it can increase the overall sales of the brand or company. By expanding the scope of the brand into new product categories, the company can attract different customers. This can certainly increase the sales volume and profits of the company.
2. Increase Brand Awareness
The next benefit is that it can help increase brand awareness so that your brand is better known. This can form top-of-mind awareness of consumers towards your brand . In addition, consumers will also find it easier to identify and remember brands or products in the market.
3. Increase Consumer Loyalty
By expanding the brand into new product categories, companies can provide a positive consumer experience across product categories. Especially if the brand releases products based on consumer needs or interests. This can help build a stronger relationship between the brand and consumers and increase loyalty.
4. Improve Brand Reputation
By expanding new product categories, companies can prove the quality and reliability of the brand itself. This can help improve the brand's reputation and make the brand more trusted by consumers.