Brand extension the benefits and pitfalls bloomhead brand extension and line extension brand extension in fmcg and. And it allows you to create extension opportunities, brand and line extensions products owned by the same company, when you have sales of. Brand extension is a strategy used in marketing a company which is already branded in the market with a pre-defined image will make use of the same brand name to market a different product category. A product line extension is when a company creates a new product in the same product line of an existing brand the strategy for an extension could be a different color or size, and it may have. The brand hit a homerun with this brand extension, and the revelations that came from it - that extensions could work if they were confined to the strong cleaning product category - informed a number of successful sanitizing products to follow.
Brand extension strategy can help companies leverage on its existing brand equity both within and the original category of products although, the profitability of brand extensions is not guaranteed, due to the high failure rate of 80% fmcgs (mahajan et al 2000 and völckner & sattler, 2006. Fmcg companies use extensions to launch bulk of their new products this trend is of wanton line extensions are dangerously that fmcg companies will extend. View notes - line and brand extension from fine arts 785 at university of mumbai the fascinating world of brands new products and brand extensions overview new product & brand extension brand.
First, if the new line extension fails to satisfy, consumers' attitudes toward other products carrying the same brand name may be damaged secondly, there is potential for intra-firm competition between the parent product and the line extension, or between two or more line extensions. Opinions expressed by forbes contributors are their own cmo network - i write about brands and brand extension strategies share to facebook share to twitter share to linkedin from products based. 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.
Brand extension is an important strategy to utilize the credibility of the brand and to minimize the advertising costs the strategy is used in various industries these days but fast moving consumer goods (fmcg) is such an industry which lie closer to a consumer, hence the immediate effect of any strategy can be properly viewed in this industry. A strong brand name is an invaluable asset managers must know when to exploit it, when to protect it, and how to tell the difference between the two because using an established brand name substantially reduces new-product introduction risks, there is an almost irresistable pull to extend brand names to new products. Brand extension is an important strategy to utilize the credibility of the brand and to minimize the advertising costs the strategy is used in various industries these days but fast moving consumer goods (fmcg) is such an industry which lie closer to a consumer. Brand extension involves utilizing and applying the established core brand name to new products to obtain the equity of the original core brand and also to capture new and unexplored market segments. Line extension and brand extension (hamish and peter, 2008) well-implemented extensions can offer a number of advantages to companies: reduce the cost of developing a new brand, increase efficiency of promotional expenditures.
Brand extension is the use of an established brand name in new product categories this new category to which the brand is extended can be related or unrelated to the existing product categories a renowned/successful brand helps an organization to launch products in new categories more easily for. Once you have an established brand, extending its reach with new products can help you to target new markets and drive sales if executed properly, brand and line extensions can give you greater efficiency in production and marketing while decreasing your promotion costs there are some inherent. The best (and worst) brand extensions thinking of nudging your brand name into a new category good luck but please, read this first the lady w's first fashion line for tweens 10 fedex. The most effective way to introduce new products and services without developing an entire new brand is to utilize a practice called brand extension brand extension leverages the equity and power of your current brand to penetrate new segments and categories that minimizes the cost and risk of creating and developing a whole new brand.
Line extension (or product extension) is a marketing strategy according to which the scope of the product a brand represents is increased ie when you are adding varieties or variations or flavors of the same branded product, you are basically doing line extension. A product line extension is the use of an established product 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, package sizes.
Abstract this thesis describes the study that analyzes the factors influencing successful brand extension specifically the thesis analyze the impact of similarity, brand reputation, perceived risk and consumer innovativeness on the success of brand extension into related or unrelated categories of fmcg products. The use of brand extensions many companies try to capitalize on their valuable brands by introducing brand extensions, which are new products that are introduced under an existing brand name brand extensions come in two different forms. Aparna dutt sharma gives us an insight on how the fmcg sector in india is leveraging brand extension know the strong dynamics of the indian consumer market. What is brand extension what does brand extension mean brand extension meaning & explanation - duration: 10:02 the audiopedia 1,722 views.