What is a brand extension? Plus 5 ideas for inspiration
We as consumers see and make use of brand extensions all day without even realizing it. We can be sipping on an exclusive Pepsi brand while watching TV, or browsing the aisle of frozen foods at the supermarket or shopping online for new moisturizing products - it is likely that the item falls in with a parent brand as an extension of what the company originally offered.
Why are companies using brands that have extensions? If you think you know the answer it's true! Some companies make a lot of money off having a product that they can master but the main reason why businesses have brand extensions is the fact that they could be extremely profitable - if successful.
What is a branding extension?
Let's get the definition of "brand extension" straight first. From the outside, it appears to be an elaborate corporate marketing phrase However the definition is pretty simple.
A branding extension is when an established business or organization begins selling a brand new item or a product in a new category using the brand name.
The difference between extension of brand and line extension
Instead of getting in the finer details of every method to create an extension of your brand for your products (there are plenty) one of the most common ones everyone in the business should be acquainted with are a brand versus an extension of a line. Although they're both types of product extensions however, they have a few important distinctions.
An extension of a brand's line is when a company launches some of its items that has a twist. Have you heard of Coke Zero Sugar or Diet Coke with Lime? It's exactly the same thing in a new line - but, it has an enticing flavor to draw Coca-Cola's loyal audience back to try it. Line extensions generally are more secure since they're in the same category of product. Sometimes, a brand line extension may also be called a vertical extension because it could also be applied to products 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 in a nutshell, you can choose cheaper options or a fancier version within the same model.
The flipside is that an extension of a brand is an entirely brand new product within the form of a brand new line of product We're thinking of you, Dyson Supersonic(tm) hair dryer. Dyson is an instance. Once only known for its vacuum vacuums, the business utilized its technological know-how to broaden its product line into the beauty industry through the release of an ingenious hair dryer and other hair styling tools. It paid off big time. For some segments of the market, there are more people who know about 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
Like we said earlier, brand extensions are prevalent everywhere these days. There are many examples we've used. a few examples already Here are five additional brand extensions that are real for you to use to come up with ideas.
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker that hails from Mexico which is owned by Coca-Cola. The bottle is well-known, taste, and logo. The latest extension of the brand is Topo Chico Hard Seltzer - spiked sparkling water. It entered a brand new category of products by offering alcoholic beverages and it is enjoying great success thanks to its established status in the beverage space. The investment paid off as its latest product was the third fastest brand of hard seltzer sold in the country in the year 2000.
- Apple Watches
Apple is a brand that we are all familiar with the brand, and we most likely have used or have used some of its products in the past. As the company began by selling computers as well, the Apple Watch product is a clear example of a extension of the brand. The product itself can literally be seen as an upgrade of iPhone and, although initially it's success was slow however, after a meticulous marketing effort and a focus on fitness and health Apple customers jumped on board to purchase the brand new device. In addition it is the case that it is a brand new product. Apple Watch has a brand line extension since Apple continually releases updated ones that come with various pricing levels.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in revenue in the first year, it was one of the top known brands that were fronted by celebrities. With the established credibility and long-lasting fan base from Fenty Beauty, Fenty Skin was born. Rihanna launched her skincare range with a deliberate approach; Fenty Skin is marketed as a gender-neutral and inclusive skincare - unlike the majority of skincare brands. This is an excellent instance of a brand expansion that has invited a broader public to join a larger brand.
- Amazon and Whole Foods
When Amazon bought Whole Foods, everyone did take a second look. This unlikely pairing changed the way people buy and order grocery items. This is an exceptional model of brand extension because, it was the case that when Amazon bought Whole Foods, the grocery chain retained its own brand. But, by utilizing Amazon's loyalty program for discounts on grocery items, the delivery service successfully extended its brand to a brand new market.
- Star Wars Franchise
The entertainment industry is famous for its brand extensions! Sequels, spin-offs, and adaptations to TV are just a few ways that entertainment companies create brand extensions. Star Wars is a great model with multiple television shows, franchises and video games, as well as books, merchandise, and there is even a themed park at Disneyland. The Star Wars franchise has generated a loyal customer base and Disney is aware of this and did not just create new fan bases around it but profited well through its numerous product enhancements.
How to develop a brand extension as an online entrepreneur
It's not difficult to envision brand extensions in relation to physical goods, for internet-based entrepreneurs, the possibilities for extending your brand are endless.
Craig Beck is the perfect illustration of an internet-savvy businessman who's used his brand to create several extension of his brand. With the help of , Craig has launched a range of digital services - not only is he the owner of extremely popular and successful sobriety coaching but he's extended his brand to encompass personal coaching as well as investing coaching! Craig has managed to extend his brand of coaching into various areas that have allowed Craig to increase his following and revenues.
The process of developing a brand extension for an online business owner should be done in three crucial parts:
- The research aspect: We cannot stress enough research! We specifically refer to audience research. Surveying your core customer group is critical for brand extensions. If you don't have your faithful followers' loyalty, you will most likely see your product flop. Ask for feedback in your community, lead an online focus group, or hold a town-hall Instagram live to solicit opinions from your fans.
- Create with your parent brand in mind:When creating the extension of your branding, make sure you don't dissociate your brand from its parent brand. It doesn't matter if you'd like to utilize the same brand name as well as logo, theme, or even a line, you'll want your branding extension to be easily identifiable.
- Beta test: The beta tests that are typical of digital products as well as software. The beta test happens when you make your product or update to a small number of people first to gauge their responses as well as work out any issues, and more. It's a great opportunity to experiment and receive feedback before you spend time and money the development of a complete expansion of your brand that may be unsuccessful.
The most appealing aspect of trying out a brand extension for digital products is that you'll hardly have to spend money - you could offer your course or membership site for free without having to spend manufacturing money on a physical product. This is the win-win.
Words of caution in relation to brand extensions
Let's be honest - extension of brands can be disastrous if done poorly. Remember the IHOb/IHOP debacle of the year 2018? IHOP expanded its brand offering with new burgers, and making a public relations move, changing their image to IHOb. While it garnered attention, many thought that it was more an April Fools Joke instead of a brand extension. After fans and competitors ridiculed the company on the internet, there was no official success of the new and improved products (burgers) and the whole thing resulted in embarrassment for restaurant chain.
What lesson can we learn from these mistakes? Research and utilize your audience as the key source for ideas and online product launches. Avoid entering into an area where you have less authority and it may be costly for you.
Enhancing your brand's image and product
If you're an entrepreneur on the internet seeking to expand your brand correctly doing the proper analysis and scrutinizing will help you to develop branding extensions that increase your current audience and bring new customers into your circle.