What is a brand extension? Plus 5 ideas for inspiration
As consumers, we are exposed to and utilize brand extensions each and without even knowing it. We can be sipping on an exclusive Pepsi brand while watching TV, checking out the aisles of frozen food at the supermarket or shopping online to purchase a new moisturizer, almost certainly, the product falls within the parent brand, and extends the original offerings of the company.
Why are companies using extension of their brand names? If you thought it was because of money, you're right! While some companies thrive off being able to master a single product but the main reason why companies have brand extensions is that they can be very profitable, if they are it's successful.
What's a brand extension?
Let's make sure we understand the concept of "brand extension" clear first. From the outside, it appears to be an elaborate corporate marketing phrase However it's quite simple.
Brand extension is when a brand extension is the time when a well-established firm or business begins selling a new product or a product in a new category using the name of its brand.
The difference between extension of brand and line extension
Instead of delving into the nitty-gritty of every way you can create a brand extension for your product (there are plenty), the two that every entrepreneur should be familiar of are brand extensions and a line extension. While they are both forms of extensions for products however, they have a few fundamental differences.
An extension of a brand's line is where a brand releases one of its products with a twist - ever heard about Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing but in a different form however, it comes with the appealing flavor that draws 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 may also be called an extension that is vertical because it is also applicable to items with tiered options. Televisions are an excellent example of this as they can be purchased as a TV in a different size or one with more features - to put it simply there are more affordable options or more expensive versions of the same brand product.
On the flip side, the brand extension can be an entirely different product that is part of the form of a brand new line of product - we're looking at you, Dyson Supersonic(tm) hair dryer. Dyson is a great example. Initially, it was only known for its vacuum products, the company used its technology to broaden its product line into the beauty industry through the release of an ingenious hair dryer and different hair styling tools. It paid off big time. In some consumer segments, the public is more aware of Dyson's hair dryers than the new vacuum cleaner. It's also referred to as a horizontal brand extension - where a parent brand produces a brand new product under it.
Experiments with real-world brand extensions
We mentioned before that brand extensions are everywhere in the present. There are many examples we've used. 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 that hails from Mexico and is now controlled by Coca-Cola. The bottle is well-known, taste, and logo. Its most recent brand extension is Topo Chico Hard Seltzer - spiked sparkling water. It entered a brand new category of products by offering spirits and has seen major success due to its reputed authority in the field of beverages. The investment paid off as its latest product was the third-fastest brand of hard seltzer sold nationwide this year.
- Apple Watches
Apple is a brand that we are all familiar with it and most likely use or had used some of its products at some point in the past. Since the company originated by selling computers, its Apple Watch product is a clear example of a brand extension. It can be described as an expansion of the iPhone - while initially, the success was slow, with a strategic marketing effort and a focus on health and fitness, Apple users jumped to buy the new product. Plus it is the case that it is a brand new product. Apple Watch has a brand line extension of its own as Apple constantly releases new versions 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 best-performing celebrity-fronted brands. Due to the credibility and long-lasting fan base from Fenty Beauty, Fenty Skin was launched. Rihanna has launched her skincare brand with a deliberate approach; Fenty Skin is marketed as a gender-neutral and inclusive skincare - unlike many existing skincare companies. This is an excellent illustration of an extension of the brand that has enthused a larger public to join a larger brand.
- Amazon and Whole Foods
When Amazon acquired Whole Foods, everyone did take a second look. This unlikely pairing ended up revolutionizing how consumers shop for and purchase grocery items. This is a singular model of brand extension because, it was the case that when Amazon acquired Whole Foods, the grocery chain retained its own brand. With the help of Amazon's loyalty program to get discounts on grocery items, the delivery service successfully extended its branding to a brand new market.
- Star Wars Franchise
The industry of entertainment is known for brand extensions! Spin-offs, sequels, and adaptations to TV are just a few methods that companies in the entertainment industry create brand extensions. Star Wars is a great model with multiple franchises, TV shows and video games, as well as merchandise, books, and even a theme park located at Disneyland. The Star Wars franchise has been able to create loyal fans and Disney has recognized this , and not only cultivated new audiences in the area, but has also benefited from the various extensions to its products.
What is the best way to create an extension of your brand name as an online entrepreneur
It's not difficult to think of extension of your brand in connection with physical goods, for internet-based entrepreneurs, the possibilities for extending your brand are endless.
Craig Beck is an outstanding instance of an online-based knowledge businessman who has utilized his brand to create several branding extensions. With the help of , Craig has launched a number of online products not just does he offer the most popular and popular addiction coaching services, but he's also expanded his brand's offerings to include personal coaching and investment coaching! Craig has managed to extend the coaching brand to different segments, which has enabled the brand to expand its audience and revenues.
The process of developing a brand extension for an online entrepreneur should come in three crucial parts:
- The research aspect: We cannot stress enough the importance of research! We specifically refer to audiences research. The research of your most loyal customers is critical for brand extensions. Without your loyal followers' backing, you'll likely see your product flop. Send a survey out in your area, organize an online focus group, or host a town hall Instagram live to solicit opinions from your fans.
- Create with your parent brand in mind:When creating your brand extension, you must make sure you don't dissociate your brand from its parent brand. Whether you want to have the same name for your brand, logo, theme, or line, you want your brand extension to be recognized.
- The beta test Tests for beta are frequent in digital goods and software. A beta test is where you release your new version or upgrade to a select sample of customers first, to gauge their responses and work through any problems that may arise, and so on. This is a fantastic method to try out the product and receive feedback before you invest time and resources in the development of a complete brand extension that could be not successful.
The most appealing aspect of testing a new brand extension for digital products is that it doesn't require you to invest money. You are able to offer your brand new website or course completely free of charge without needing the expense of manufacturing an actual product. This is an win-win.
A word of caution regarding brand extensions
Let's be honest - extension of brands can be disastrous when done badly. Do you remember the scandal of IHOb/IHOP in 2018? IHOP increased its branding by offering new burgers and also, as a publicity campaign, changed its image to IHOb. While it garnered attention however, some thought it was more of an April Fools Joke instead of a brand extension. Following the scathing comments of competitors and fans about the brand on the internet, there was no any official recognition of its innovative and better products (burgers) which was a disaster for the restaurant chain.
What lessons can we take from these mistakes? Conduct your own research and consider your customers as the primary source of new ideas as well as online product launches. Avoid entering into an area where you have less authority as it can cost you.
Enhancing your brand's image and product
If you're an online entrepreneur seeking to expand your brand correctly by conducting the appropriate study and screening will allow you to design brand extensions that will boost your existing audience as well as bring in new people to your circle.