What is brand extension?
Brand extension involves stretching the brand into attractive categories, by creating “equity bridges” for customers to cross
How is brand extension used?
Brand extension is used to stretch the brand into new categories to drive new business growth
Brand extension is a process that allows companies to define new and attractive business opportunities for existing brands, with two basic approaches:
Customers follow trademark to logical places
Marketers determine attractive categories and create equity bridges for customers to cross
Benefits of Brand Extension
Advantages of brand extension (vs. new brand creation):
- Further strengthen and build the brand franchise
- Enhance the chance of new business success
- Reduce the cost of new business development
Brands can be highly elastic – the key is not to violate the inherent benefit essence of the brand