What is brand extension and line extension?

Asked By: Desamparats Wickenhofer | Last Updated: 16th June, 2020
Category: business and finance marketing and advertising
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Brand Extension is a marketing strategy according to which, a well known brand uses the same brand name to enter into a totally unrelated product category. Like brand extension, line extension is also done to leverage on the brand equity by targeting a bigger chunk of the user base.

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Also question is, what is brand line extension?

Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes. This is as opposed to brand extension which is a new product in a totally different product category.

Furthermore, how do you brand an extension? To increase the probability of success, any brand should follow a few best practices.

  1. Measure Brand Equity.
  2. Measure the potential risks.
  3. Leverage from business core competency.
  4. Invest in Marketing Research.
  5. Make the brand extension a logical fit.
  6. Create a Brand Extension Strategy.

Just so, what is brand extension example?

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. An example of a brand extension is Jello-gelatin creating Jello pudding pops.

When a company uses line extension it is?

line extension. Multiproduct branding strategy whereby a firm markets one or more new products under an already established and well known brand name. The objective is to serve different customer needs or market segments while taking advantage of the widespread name recognition of the original brand.

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What are the types of brand extension?

Following are a few types of brand extension
  • Companion product extension :
  • Product form extension :
  • Extension of company expertise :
  • Customer franchise extension :
  • Extension of brand prestige :
  • Extension of brand distinction :
  • Component brand extension :
  • Customer base extension :

What is a category extension?

Definition: Category Extension
Category or Brand Extension is a strategy by which, a company uses the same brand to enter into a completely unrelated product segment. The company leverages on the brand equity and success of its existing brand to introduce the new product to increase market acceptance.

What is product line extension strategy?

A product line extension strategy is an approach to developing new products for your existing customers or for prospects who do not currently buy from you. Extending a product line involves adding new features to existing products, rather than developing completely new products.

What are the advantages and disadvantages of brand extension?

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 are the four branding strategies?


4 Brand Growth Strategies
Here are four common brand growth strategies for businesses looking to extend their services or product offerings. The four brand strategies are line extension, brand extension, new brand strategy, and flanker/fight brand strategy.

What is product form extension?

Product form extension includes launching the same product in a different form, which results in it competing in a different product category.

What do product extensions include?

A product line extension is the use of an established product's brand name for a new item in the same product category. Line extensions occur when a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

What is a line extension in pharma?

Line extensions are a pharmaceutical product that are based on a previously approved molecule. Precisely because line extensions have the same active ingredient as an original product, line extensions and original products are typically in the same therapeutic class and are imperfect substitutes.

What is an example of extension strategy?

An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.

Why do brand extensions fail?


1 reason why some brand extensions fail is simple: they don't bring enough meaningful value to the consumer. Its McPizza product flopped because consumers thought its value proposition was too similar to established competitors such as Domino's and Pizza Hut.

What is the most successful brand?

According to Interbrand, in 2016 the top 10 most successful global brands were:
  • Apple.
  • Google.
  • Coca Cola.
  • Microsoft.
  • Toyota.
  • IBM.
  • Samsung.
  • Amazon.

Are brand extensions good or bad?

As they say the most successful brand extensions come from companies that really know their customers, even more so that know the limitations of their brand. Brand extensions build on existing equity, they are less expensive to launch than entirely new brands, and they are a low risk option in these competitive times.

Why is brand extension necessary?

Brand extensions are necessary. They are a direct consequence of competition in mature markets and of the fragmentation of media. The only justification for brand extension is growth and profitability. Brand extension is not new: it is the core of the business model of luxury brands.

How do you extend the product life cycle?

There are many strategies that can be implemented to achieve this.
  1. Market Modification. The company can elect to expand the market for its mature brand by working on increasing the number of brand users as well as the usage rate per user.
  2. Product Modification.
  3. Marketing Program Modification.

Is brand extension vital to the business?


The Importance of Brand Extension. Right now, brand extension is important for companies that want to be innovative and ahead of the game in regards to business trends. This is currently an emerging trend that has great potential simply because the focus is on both the business and the consumer.

What is the difference between brand extension and brand stretching?

The term brand stretch refers to how far a business can stretch its products or services into new and unrelated markets successfully. The less extreme variation of a brand stretch is a brand extension, where an existing brand launches a new or modified product into the same broad market.

What is a product line example?

For example, a cosmetic company that's already selling a high-priced product line of makeup (that might include foundation, concealer, powder, blush, eyeliner, eye shadow, mascara, and lipstick) under one of its well-known brands might launch a product line under the same brand name but at a lower price point.