Is brand extension good or bad?
Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/original brand.
What is an example of brand extension?
Brand extension can be as obvious as offering the original product in a new form. For example, the Boston Market restaurant chain launched a line of frozen dinners under its own name, offering similar fare. Another form of brand extension combines two well-known products.
What percentage of brand extensions fail?
Only 50 percent of brand extensions end up successful, says Brand Stretch author David Taylor. His book provides practical help on both the method and mindset needed to create successful extensions.
What are the effects of brand extension?
The results show that brand extensions affect the product brand image negatively, whereas the fit between the parent and extension brands decreases the negative effect. The drop of image as a result of extension is greater when the perceived image and quality of the parent brand are higher.
Why are brand extensions 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 makes a good brand extension?
Make the brand extension a logical fit The new product must be a logical fit to the brand, compatible, expected and follow the current brand story. The link between the new product and the parent brand should be easily tracked. The biggest brand extension pitfalls fall into this category.
Why is brand extension a popular marketing strategy?
Why Is Brand Extension a Popular Marketing Strategy? According to Nielsen, brand extension (or brand stretching) has a likelihood of success five times that of new product launches. Extensions also leverage equity, increase efficiency, and enjoy faster consumer adoption.
Are brand extensions an important brand growth strategy?
By exploring new potential areas for relevant growth, brand extensions give companies access to everything from better brand visibility, to boosted consumer connections and of course, more opportunities for profit. In fact, Nielsen suggests that brand extensions are up to 5 times more successful than new launches.
What are two types of brand extensions?
Types of brand extension
- Product form.
- Companion product.
- Company expertise.
- Brand distinction.
- Brand prestige.
- Transfer of components.
- Leveraging a lifestyle.
What is the difference between brand proliferations and brand extensions?
Brand proliferation is the opposite of brand extension. While in brand extension, new items are added using an existing brand name and several products are offered under the same brand name, in brand proliferation, more items are added to the product line with different brand names.