Quick Answer: What Is The Role Of Brand Extension?

What is straight extension strategy?

In straight extension the same product is marketed to all countries (a “world” product), except for labeling and language used in the product manuals.

The assumption behind this strategy is that consumer needs are essentially the same across national boundaries..

What are the components of brand extension?

A comprehensive literature review identifies six elements which are crucial to the success of brand extension. These elements are Parent Brand Image, Parent Brand Fit, Parent Brand Strength, Marketing Support, Quality of Parent Brand and Parent Brand Consumer Experience.

Are brand extensions as relevant in industrial markets as in consumer markets?

In consumer markets, brand extensions can bring benefits the producer and can be considered as relevant . Consumer products are easily distinguished from one another. For example when P&G use brand extension to market their new product such as perfume line. It will not dilute their existing product line.

What is family brand with example?

One noteworthy example of family branding is that by Apple where all the products are marketed under the Apple brand. The Apple brand and logo helps customers to easily identify Apple products and instills faith in them. Other examples include Tata Group of products & Johnson & Johnson.

Why do brand extensions fail?

1 reason why some brand extensions fail is simple: they don’t bring enough meaningful value to the consumer. … Its McPizza product flopped because consumers thought its value proposition was too similar to established competitors such as Domino’s and Pizza Hut.

What makes a brand extension successful?

The general consensus is that when brand equity is high, the chances of a successful brand extension increase. … All of these companies possess very high brand equity and they are relevant in a luxury niche that could succeed in the hospitality industry.

What is the purpose of brand extension?

A brand extension is when a company uses one of its established brand names on a new product or new product category. It’s sometimes known as brand stretching. The strategy behind a brand extension is to use the company’s already established brand equity to help it launch its newest product.

What are the types of brand extension?

8 Types Of Brand ExtensionSimilar Product In A Different Form From The Original Parent Product. … Distinctive Flavor/Ingredient/Component In The New Item. … Benefit/Attribute/Feature Owned. … Expertise. … Companion Products. … Vertical Extensions. … Same Customer Base. … Designer Image/Status.

What are the 4 branding strategies?

The four brand strategies are line extension, brand extension, new brand strategy, and flanker/fight brand strategy.

What is the difference between a brand extension and a line extension?

A product line extension is the use of an established product brand name for a new item in the same product category. … This is as opposed to brand extension which is a new product in a totally different product category. Line extension occurs when the company lengthens its product line beyond its current range.

What is a category extension?

A category extensions is when an existing brand name is applied to a product category that is new to the firm. The study is conducted based on exclusively written data whereas a presentation of textual. analysis will appear.

What are the 5 pricing strategies?

Types of Pricing StrategiesCompetition-Based Pricing.Cost-Plus Pricing.Dynamic Pricing.Freemium Pricing.High-Low Pricing.Hourly Pricing.Skimming Pricing.Penetration Pricing.More items…•

What are product life cycle extension strategies?

An extension strategy will involve amendments to the marketing mix such as upgrading or updating the product, changing the packaging or presentation, adding new features or new design elements or lowering price. Figure 2 shows the impact of the extension strategies on the product life cycle.

What is an example of brand extension?

A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product. Some example of brand extension are: Apple: from personal computers into MP3 players. Callaway: from golf clubs into footwear, apparel and golf accessories.

Are brand extensions good or bad?

A brand name can fail to help an extension or, worse, can create subtle (or sometimes not so subtle) associations that hurt the extension. Worse still, the extension can succeed, or at least survive, and damage the original brand by weakening existing associations or adding new, undesirable ones.

What is a extension strategy?

An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.

What is an example of a licensed brand?

Licensing is used by brand owners to extend a trademark or character onto products of a completely different nature. Examples of intangible assets include a song (“Somewhere Over The Rainbow”), a character (Donald Duck), a name (Michael Jordan), or a brand (The Ritz-Carlton).