What's an extension of a brand? Plus 5 ideas for inspiration
We as consumers see and make use of brand extensions all throughout the day, without realizing. Whether we are sipping a new Pepsi-owned product while watching TV, or browsing the frozen aisle of the grocery store and online searching for a new moisturizer - it is likely that the item falls in with a parent brand and is an extension of what the company originally offered.
Why are companies using extension of their brand names? If you thought it was because of money then you're correct! Some companies make a lot of money off having a product that they can master however the reason that businesses have brand extensions is because they are very profitable, if they are the company is successful.
What's a brand extension?
Let's get the definition of "brand extension" clear first. It sounds like a fancy corporate marketing term however, in actuality it's quite simple.
An branding extension is the time when a well-established firm or business begins selling a brand new item or offering in an entirely new area under the name of its brand.
The difference between brand extension and line extension
Instead of getting into the nitty-gritty of every ways to make a brand extension for your products (there are plenty), the two that everyone in the business should be acquainted of are brand extensions and the line extension. While they are both forms of product extensions There are some fundamental differences.
An extension of a brand's line is when a company launches some of its items with a twist - ever had you heard of Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing but in a different form and it's got appealing flavors that will draw fans of Coca-Cola back to taste the product. Line extensions generally are more secure since they're within the same product category. Sometimes, a brand line extension can also be referred to as a vertical extension because it could also be applied to products that have tiered choices. TVs are a good illustration of this since you can buy the same television in different sizes or with more features added for example there are more affordable options or more expensive versions of the same product.
However, a brand extension is an entirely new product in a new product line such as, Dyson Supersonic(tm) hair dryer. Dyson is an excellent instance. Initially, it was only known for its vacuum cleaners, the company made use of its expertise to broaden its product line into the world of beauty by releasing an innovative hair dryer, as well as various other tools for styling hair. It paid off hugely. For some segments of the market, more people now know about Dyson's hair dryer than its new vacuum cleaner. It's also referred to as a horizontal extension of a brand - where a parent brand produces a brand different product beneath it.
Examples of real-world extensions to brands
Like we said earlier, brand extensions are prevalent everywhere these days. We've probably tossed around several examples in the past Here are five other brand extensions from the real world for you to use to think about your own ideas:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker from Mexico and is now part of Coca-Cola. It is recognizable by its bottle with a distinctive taste and logo. Its most recent brand extension is Topo Chico Hard Seltzer - sparkling sparkling drink that is spiked. It entered a brand new category of products by offering alcoholic beverages and it is enjoying great success thanks to the brand's established authority in the field of beverages. It's paid off: its latest product was the third-fastest brand for hard-seltzer nationwide last year.
- Apple Watches
Apple We all have heard of it and most likely use or employed some of its services at some point in the past. Because the company was founded with a line of computers, its Apple Watch product is a clear example of a extension of the brand. The Apple Watch can be seen as an expansion of the iPhone - while at first, the success was slow however, after a meticulous marketing effort and a focus on fitness and health Apple consumers jumped at the chance to purchase the latest model. Additionally it is the case that it is a brand new product. Apple Watch has a brand line extension of its own since Apple regularly releases updates with different pricing tiers.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in sales during the initial year. it became one of the most successful celebrity-fronted brands. With the established reputation and strong following of Fenty Beauty, Fenty Skin was created. Rihanna introduced her skin care line with a deliberate approach; Fenty Skin is marketed as gender-neutral and inclusive line of skincare, which stands out from many existing skincare brands. This is a fantastic example of a brand extension that has enthused a larger public to join a larger brand.
- Amazon and Whole Foods
When Amazon bought Whole Foods, everyone did take a second look. But, this unlikely combination changed the way customers shop and buy groceries. This is an exceptional model of brand extension because, the moment Amazon acquired Whole Foods, the grocery chain retained its own brand. But, by utilizing Amazon's loyalty program that offers discounts on grocery items The delivery service successfully extended its branding into a completely new segment.
- Star Wars Franchise
The industry of entertainment is known for its brand extensions! Sequels, spin-offs, and TV adaptations are all ways that entertainment companies make brand extensions. Star Wars is a great example with several different series, franchises videos, games, merchandise, books, and there is even a themed park in Disneyland. The Star Wars franchise has generated a loyal customer base and Disney has recognized this and not only cultivated new audiences in the area, but has also benefited from its various product extensions.
What is the best way to create an extension of your brand name as an online entrepreneur
Although it's simple to imagine extension of your brand in connection with physical goods, for internet-based entrepreneurs, the possibilities for expanding your brand's reach are limitless.
Craig Beck is the perfect instance of an online-based knowledge businessman who has utilized his name to develop a variety of brand extensions. Using , Craig has launched a range of digital services - not only is he the owner of extremely popular and successful sobriety coaching, but he has broadened his business to include coaching for personal use and investing coaching! He has successfully extended the coaching brand to different categories which has allowed the brand to expand its audience and revenue.
The process of developing a brand extension for an online business owner should be done with three essential components:
- Research: We cannot stress enough the importance of research! This is specifically referring to audiences research. Conducting a survey of your primary customer base is essential for brand expansion. Without your loyal followers' loyalty, you will most likely expect a product to flop. You can distribute a poll to your area, organize an online focus group, or hold a town-hall Instagram live to get your audience's opinion.
- Make your HTML0 extension with the parents brand in mindWhen designing your brand extension, you must make sure that you do not dissociate your brand from its parent brand. Whether you want to have the same brand name, logo, theme, or line, you'll need your branding extension to be easily identifiable.
- The beta test The beta tests that are common among digital products and software. The beta test happens when you make your software or upgrade to a select group of users first to observe their reaction as well as work out any issues or issues, and much more. It's a great opportunity to experiment and receive feedback before you spend time and money creating a brand extension that could be unfavorable.
One of the best things about testing a new brand extension for digital products is that you won't need to pay for it - you are able to offer your brand new course or membership site completely free of charge without needing the expense of manufacturing an actual product. We call that a win-win.
Words of caution regarding extension of brands
It's a fact that brand extensions can fail when done badly. Remember the IHOb/IHOP debacle of the year 2018? IHOP extended its brand by introducing new burgers as well as also, as a publicity stunt, changing its logo to IHOb. Though it received a lot of attention however, some thought it was more of an April Fools Joke instead of an extension of the brand. Following the scathing comments of competitors and fans about the company on social media, there was no official success of its new and improved products (burgers) which ended in embarrassment for the restaurant chain.
What lessons can we take from these failures? Research and utilize your customers as the primary resource for new ideas and launch of digital products. Be careful of venturing into an area where you have less authority - it could be costly for you.
Enhancing your brand's image and products
If you're an online entrepreneur seeking to expand your brand in the right way, completing the right analysis and scrutinizing will help you to design brand extensions that will boost your existing audience and bring new customers into your ranks.