Confused with between what is a brand & what is brand extension? A brand is an identity that is entitled to a service or a product which will become its permanent identity for itself. The fact is brands and products are 2 different concepts. The brands are actually what customers buy are products can be explained as the goods that companies manufacture. A brand is seen as a compilation of emotional and functional association.
Brand provides a confidence among the customers that the product purchased will for sure meet their aspirations. This is where the understanding of the product takes place. Brands come with a trademark that prevents others from using or misusing it. On the other hand it also provides other significant information about the product or service, the manufacturing organization and highlighting it in the market.
Brand can be explained as the category of communication and marketing techniques helping an organization to create a distinguishing line against their competitors in the marketplace. The view of a brand is completely different for customers and for the sellers. Customers and sellers see brand as a different concept.
For a customer a brand will mark the origin of the product as there will be lesser risk involved in purchasing the product or service, ensuring the ownership of the manufacturer of the product and the superb quality etc. It actually eases the purchasing decision for the customer. On the other hand for a seller a brand will designate competitive leverage, the way it is identified and the product standards.
Understanding brand extension strategy
The brand extension is a technique or method taken into consideration in marketing of a product or service. A company that already has a brand recognition in the market with a good enough image that will be used of the same brand name in order to market a completely different product category. By adopting the new or different product category that is interlinked with the already existing name of the brand, the market reach of the product is that quick and easy. As the market is informed well about the existing products in association with brand, the new product has a higher chances of reaching out quickly to the consumers.
Whenever it is so that the brand is tied up with the existing brand, and that brand extension is known as sub-brand. An existing brand is something that gives rise to the brand extensions is known as a parent extension brand. In a situation wherein the brands is interlinked with multiple products with numerous extensions which is known as a family brand. Nevertheless whenever the customer customers of the existing product have preferable values it is possibly going to be accepted as a new business.
Below mentioned are a few techniques of creating a brand extension
1. Line extension
A same brand when selected or picked to help in launching a product but just bin a different way it is known as line extension. The byline extension, is when the product is a little different from the existing product. For instance Amul recently came up with a new product “condensed milk” which is just an extension of the milk product it manufactures, head & shoulders mainly manufacturer’s shampoo that can help improve hair of different types. It designates the rescaling of the product. As Tropicana is a juice company that manufactures small as well long juice packs. Head and Shoulders can simply be the best probable brand extension example.
2. Product extension
The company when launches a new product it is known as product extension. For instance earlier the Colgate company was into production of tooth paste has now entered into manufacturing oral healthcare products. So there is a higher chance of the existing Colgate customers using the newly made products from Colgate as they have faith in the brand, they won’t hesitate using another product of the same brand.
3. Customer Franchise Extension
The Customer Franchise Extension is entirely based on the large customer group, here the product range is extended. Such an extension normally aims at targeting certain type of customers. For instance, Johnson and Johnson’s is a MNC that specifically manufacturers baby products. An ideal customer franchise brand extension examples
4. Company expertise Extension
This can be defined as the launching of the product category which makes use of same brand or company name. For instance Samsung not just manufactures mobile phones but it manufactures electronics such as Television. Smart T.V, machine, fridge etc.
5. Brand distinction Extension
There are numerous brands that are pioneer in the benefits they provide. Such brands are emphasized in accordance with the benefits they provide to the customers. For instance Dhatri Oil has been into consumption by the customers for the herbal features that minimizes hair fall and enhances hair growth.
Benefits of Brand Extension
Below mentioned are the advantages of Brand Extension
1. The customers easily accept the new product
2. As the brands are existing in the market already they are informed about the various products that exist in the market as being linked to the specific brand. Therefore the threats understood by the customers with respect to the brand will substantially be minimized.
3. Therefore this can boost the image of the brand. Brand image is actually the customer’s present concept of the brand.
4. The actual cost of promotion, selling and advertisement will be reduced as brand has an existence in the market.
5. The cost that will be incurred in brand development is avoided.
6. Improvement of brand visibility.
7. Launch of the new products in coordination with the parent brand, the parent brand gets recognized even more and visibility is improved.
8. Thus this energizes the brand. This gives rise to more clarity of the brand when the new products are launched under the same brand name.
9. Market coverage is extended as brand new customers will tend to buy new products.
To abbreviate the brand extension it designates the procedure concerned when a firm uses its persuasion power to launch brand new products in a new category. The main catch behind the brand extensions is to shift the network of collaboration which will attract more and more customers to go ahead and make the purchase decision.