Written by ©2019 Lien Design
If you own a company and expand to offer a new product, would you give that product a name that is related to the name of your business? If the answer is yes, the new product would be considered a brand extension. Some examples of companies that have created brand extensions include:
· Snickers: With its creation of Snickers ice cream bars.
· Hershey’s: With its creation of Hershey’s chocolate milk
· Febreze: With its creation of Febreze car air fresheners
There are many ways companies can use brand extensions. Here are some examples:
· Line extension: These are used to release a product that is a variation on an existing one.
· Product extension: This is when a company launches an entirely new product. These are usually related to the existing products the company sells.
· Extension of customer franchise: This is when the company’s product range is extended.
· Extension of company expertise: These are extensions that occur based on the expertise of the company. For instance, Samsung has launched a wide variety of appliances including washing machines, refrigerators, mobile phones and more.
· Extension of brand distinction: These are brands that extend based on the unique benefits they offer their customers.
Brand extensions can be successful, or they can be complete failures. They can be successful if customers enjoy and buy the products created as a result of the extensions, or they can fail if customers do not like the products. Companies take bigger risks when they release products that are well out of their wheelhouse.
However, if a brand can successfully launch a brand extension, it can provide a number of benefits to the company. These include the following:
· Raising brand awareness.
· Greater chance of success for new products that are already related to a reputable company name.
· New products can attract customers who will try other products the company manufactures.
· Cost of developing a new brand, including some web design and branding expenses, will be avoided.
· Boosts image and energy for the brand.
· Gives the brand a leg up on its competition.
The success of your brand extension will greatly rely on the way it is presented, and here’s where you might want to call in an expert. San Diego, CA’s Lien Design are a design branding agency experienced in all aspects of branding including logo and label design, web design, graphic design and more. They are guaranteed to get your brand extensions off to a good start increasing the chances that they will be successful.
Brand extensions can help your company to grow. However, they will only have a positive impact if your product is successful. Do what you can to create a product you know your customer base will love and follow it up with marketing that will appeal to your target audience. Good luck making your brand extension work for your business.