What is Brand Extension?
Brand extension, also referred to as brand stretching, is a marketing technique used by companies to leverage their established brand name and image to introduce a new product into the market. With this strategy, a company can reduce the amount of time and money needed to establish a new product, as well as capitalize on its existing customer base.
Benefits of Brand Extension
Brand extension has the potential to offer many benefits to companies, including:
- Increase brand recognition and loyalty
- Reach new consumers and markets
- Leverage existing customer base
- Reduce the amount of money and time needed to create a new product
Examples of Brand Extension
One of the most famous examples of brand extension is Coca-Cola. The company has leveraged its brand to introduce a range of products, such as Coca-Cola Zero Sugar, Coca-Cola Life, and Coca-Cola Cherry. Other examples of brand extension include Apple’s iPhone, which extended the company’s existing brand of computer products to mobile devices, and Nike’s line of sportswear, which extended its brand from footwear to apparel.
Conclusion
Brand extension is a useful marketing technique that can help companies to capitalize on their existing brand name and image, as well as reach new consumers and markets. By leveraging their existing customer base, companies can reduce the amount of time and money needed to create a new product.