What's a brand extension? Plus 5 ideas for inspiration
We as consumers see and use brand extensions every throughout the day, without realizing. We can be sipping on an exclusive Pepsi brand while watching TV, browsing the frozen aisle of the supermarket and online searching for a new moisturizer - it is likely that the item falls under a parent brand and extends what the company originally offered.
Why do companies have extension of their brand names? If you think you know the answer, you're right! While some companies thrive off being able to master a single product, the real reason businesses have brand extensions is the fact that they could be extremely profitable - if successful.
What's a brand extension?
Let's set the meaning of "brand extension" straight first. On the outside, it appears to be something that's a fancy term used in corporate marketing However, it's pretty straightforward.
A branding extension is the time when a well-established business or organization begins selling a new product or product that falls into the new market segment using the brand name.
The distinction between brand extension and line extension
Instead of delving into the nitty-gritty of every method to create an extension of your brand for your product (there are many) The two main ones that everyone in the business should be acquainted of are brand extensions and the line extension. Though they're both kinds of extensions for products, there are a few key differences.
An extension of a brand's line is the time when a brand launches some of its items that has a twist. Have you thought about Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing but in a different form however, it comes with an enticing flavor to draw fans of Coca-Cola back to taste the product. Line extensions tend to be less risky since it's in the same category of product. In some cases, a line extension may also be called an extension that is vertical because it is also applicable to items with tiered options. TVs are a great instance of this because you can buy the same TV with a different dimension or one with more features - to put it simply, you can choose lower-cost options or even more expensive versions of the same brand product.
On the flip side, the brand extension can be an entirely brand new product within the form of a brand new line of product We're thinking of you, Dyson Supersonic(tm) hair dryer. Dyson is an example. Once only known for its vacuum products, the company used its technology to expand its products into the world of beauty by releasing an innovative hair dryer, as well as other hair styling tools. The result was massively. There are segments of the population where there are more people who know about Dyson's hair dryer than its latest vacuum cleaner. It's also known as a horizontal extension of a brand - where a parent brand produces a brand new product underneath it.
Experiments with real-world brand extensions
We mentioned before that extension of brands are commonplace nowadays. We've probably tossed around a few examples already and here's five more real-life brand extensions that you can use as a reference for your think about your own ideas:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker from Mexico which is part of Coca-Cola. It has a recognizable bottle flavor, logo, and taste. The latest extension of the brand can be described as Topo Chico Hard Seltzer - sparkling sparkling drink that is spiked. The brand has entered a new market segment by selling alcohol-based drinks and has seen major success due to the brand's established authority in the beverage space. The investment paid off as its new product was the third fastest brand for hard-seltzer nationwide last year.
- Apple Watches
Apple is a brand that we are all familiar with the brand, and we most likely have used or had utilized its products at some point in the past. As the company began as a computer company as well, the Apple Watch product is a clear example of a extension of the brand. The product itself can literally be considered to be an extension of the iPhone and, although at first, it was not a huge success but after a smart marketing campaign and an emphasis on fitness and health, Apple consumers jumped at the chance to purchase the new product. Additionally there is that it is a brand new product. Apple Watch has a brand line extension itself as Apple regularly releases updates featuring different price levels.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in revenue in the first year, it became one of the most successful celebrity-fronted brands. With the established reputation and strong following that is Fenty Beauty, Fenty Skin was created. Rihanna introduced her skin care range in a strategic way; Fenty Skin is marketed as gender-neutral and inclusive line of skincare, which stands out from many existing skincare brands. This is an excellent illustration of an extension of the brand that has invited a broader audience into a parent brand.
- Amazon and Whole Foods
When Amazon purchased Whole Foods, everyone did an oblique glance. This unlikely pairing resulted in a revolution in the way that people buy and order groceries. It is a unique instance of brand extension due to the fact that it was the case that when Amazon acquired Whole Foods, the grocery chain kept its own branding. However, using Amazon's powerful loyalty program that offers discount on food items The delivery service successfully extended its brand to a brand new market.
- Star Wars Franchise
The industry of entertainment is known for its brand extensions! Sequels, spin-offs and TV adaptations are all methods used by entertainment companies to develop brand extensions. Star Wars is a great model with multiple television shows, franchises videos, games, merchandise, books, and there is even a themed park located at Disneyland. The Star Wars franchise has generated a loyal customer base and Disney has recognized this , and did not just create new fan bases in the area, but has also benefited through its numerous product enhancements.
What is the best way to create an extension of your brand name for an online-based entrepreneur
While it's easy to envision brand extensions in relation to physical products, for online entrepreneurs, the possibilities of extending your brand are endless.
Craig Beck is the perfect illustration of an internet-savvy entrepreneur who has used his own brand name to come up with a number of branding extensions. With the help of , Craig has launched a range of digital services - not only is he the owner of extremely popular and successful sobriety coaching services, but he's also expanded his brand's offerings to encompass personal coaching as well as investment coaching! He has successfully extended the coaching brand to different categories which has allowed him to grow his audience as well as his revenue.
Developing a brand extension as an online entrepreneur should come from three fundamental parts:
- Research: We cannot stress enough the importance of research! We specifically refer to audience research. Surveying your core customer group is critical for brand extensions. Without their loyal support, you can most likely find that your product will flop. Ask for feedback in your area, organize an online focus group or host a town hall Instagram live to get your audience's opinion.
- Make your HTML0 extension with the brand's parent company in mind:When creating an extension for your company, you must make sure you don't distance your brand from its parent brand. It doesn't matter if you'd like to utilize the same name for your brand or logo, theme or line, you want your brand extension to be recognized.
- Test for beta: Beta tests are typical of digital products as well as software. The beta test happens when you make your software or upgrade to a small number of people first to gauge their responses and work through any problems that may arise, and so on. It's an excellent way to test the waters and get feedback prior to deciding whether you want to waste time and money on developing a full brand extension that could be unfavorable.
The most appealing aspect of trying out a brand extension to digital goods is that it doesn't require you to spend money - you are able to offer your brand new course or membership site at no cost without having to purchase manufacturing costs for a physical product. We call that the win-win.
A word of caution in relation to brand extensions
We'll be blunt - branding extensions could fail when done badly. Did you remember the IHOb/IHOP scandal of 2018? IHOP increased its branding by introducing new burgers as well as, in a publicity move, changing their logo to IHOb. While it garnered attention however, some thought it was more of an April Fools Joke instead of being a branding extension. After fans and competitors ridiculed the company on the internet, there was no public announcement of the success of the new and improved products (burgers) which ended in embarrassment for the restaurant chain.
What lesson can we learn from these failures? Research and utilize your audience as the key source for ideas and online product launches. Avoid entering into an area where there is less credibility - it could be costly for you.
Building your brand and products
If you're an online business owner looking to extend your brand correctly, completing the right study and screening will allow you to design extension of your brand that can increase your current audience as well as bring in new people to your fold.