Brand extension
Brand extension is a marketing strategy in which a company uses its existing brand name to introduce a new product or service. This can be a way for companies to leverage the equity of their brand and expand into new markets or product categories.
One example of successful brand extension is Apple, which started as a computer company but has since expanded into music players, smartphones, and smartwatches. By using the Apple brand name, these new products were able to capitalize on the existing brand loyalty and reputation of Apple’s computers.
Another example is Coca-Cola, which has successfully extended its brand into a wide range of beverages, including Coca-Cola Zero, Diet Coke, and Sprite. By leveraging the strong brand recognition of Coca-Cola, these new products were able to quickly gain market share.
Brand extension can be a risky strategy, as it can dilute the original brand if not done carefully. Companies must ensure that the new product or service aligns with the core values and image of the existing brand in order to be successful.
Overall, brand extension can be a powerful tool for companies looking to expand their product offerings and reach new customers.