Brand extension, also known as brand stretching, is the use of a well-established brand name for a new product or new product category. Often brand managers will leverage a brand’s equity to enter or extend their brands into new product categories to help drive strategic growth for the company for example crest extended its brand from toothpaste into whitening. But what would be course of brand building for brand extension here brand has to draw some brand elements and brand knowledge from already developed brand, which has already created impression in consumer’s mind, thereby leveraging secondary brand association to create brand equity. Effective brand extension strategies should ensure that original and independent concepts are implemented, rather than merely borrowing ideas from the parent brand brand extensions have become a tried and tested method of leveraging brand equity to sell new products, services and experiences. In this article (our finale), we complete our four-part series on brand equity, suggesting how a firm that has established equity in a brand can leverage that equity through branding strategies such as brand and line extensions, co-branding, and licensing.
Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations. Brand extensions offer one way of leveraging a brand's assets and equity to market new products, increase sales, and (hopefully) produce profits while there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand. Adapting to succeed leveraging the brand equity of best sellers to succeed at the box office is different from leveraging movie equity (ie, movie sequels) in filmmaking sood and drèze found that brand equity positively influences extension evaluations even among consumers with limited brand knowledge mao and krishnan (2006) showed.
Brand extension refers to the corporate activity whereby companies introduce new products, new product variants or product improvements by leveraging the brand equity of the existing parent brand. Brand extensions are one of the most popular strategies for leveraging brand equity by launching new products under popular brand names, firms hope that consumers will respond more favorably to the new offering, due to their familiarity with the parent brand, positive feelings toward the parent. Brand extension to describe using the leverage of a well known brand name in one category to launch a new product in a different category at that point in time, there was no recognition of what a brand extension was or any systematic methods to pursue brand extension new products. |4 | sectors and can be seen as a brand extension is by using two different brands for the exactly same product and for treating two different.
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category the new product is called a spin-off organizations use this strategy to increase and leverage brand equity (definition:. Leveraging brand equity to attract human capital benefits of brand equity in consumer markets have been explicated, the potential for for this we turn to the brand extension literature. Brand extension: a strategy for competitive advantage dr tarun kushwaha associate professor 24 effect of brand extension on brand equity market were very high and it could be overcome by leveraging the brand equity of an existing successful brand thus brand extension makes the introduction of a new entry. Brand leveraging is the strategy to use the power of an existing brand name to support a company’s entry into a new but related product category by communicating valuable product information to the consumer. Leveraging brand equity to introduce new products can provide instant positive brand equity to the new product and elevate the existing brand equity however, the brand extension route is not the best choice for every new product introduction.
Hence to leverage brand equity, the coca-cola company uses various convenient and successful ways to build secondary brand association the following are the ways, company has built secondary brand association while introducing its new product diet coke in 1986. Brand extension: essential for business growth a robust brand extension strategy is essential to flourish and maintain relevance in today’s hyper-competitive marketplace in some ways, it represents the most straight-forward and logical way to achieve profitable brand growth, yet many companies struggle with how far to stretch, where. Fmcg sector in india leveraging brand extension market experts are of the view that not only do brand extensions leverage the equity of the parent brand but they also lead to faster adoption and deliver higher marketing efficiency in the indian market.
A special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products. Brand extension is a marketing strategy in which an organization that markets a product or service with a well-developed image uses the same brand name but in a different business category brand managers use this as a strategy to increase and leverage brand equity. Brand equity is a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service the concept is used to determine how valuable a brand is, based on the idea that firmly established and reputable brands are more successful. Brand equity, however, can also turn negative examples are communications services that get a reputation for wretched customer service, automobiles with a dangerous design defect, or a widely.