What's a brand extension? + 5 examples for inspo
As consumers, we see and use brand extensions every throughout the day, without realizing. We can be sipping on the latest Pepsi product watching TV, or browsing the frozen aisle of the grocery store and online searching for a new moisturizer - most likely the product fits in with a parent brand and is an extension of what the company originally offered.
Why do companies have extension of their brand names? If you thought it was because of money then you're correct! While some companies thrive off being able to master a single product however the reason that companies have brand extensions is because they are extremely profitable - if successful.
What is a brand extension?
Let's set the meaning of "brand extension" straight first. On the outside, it appears to be an elaborate corporate marketing phrase However the definition is pretty simple.
A expansion of a brand is when an established firm or business begins selling a brand new item or product that falls into the new market segment using its brand name.
The difference between brand extension and line extension
Instead of delving into the nitty-gritty of every ways to make an extension of your brand for your product (there are a lot), the two that every entrepreneur should be familiar with is a brand and the line extension. Although they're both types of extensions for products, there are a few important distinctions.
A brand line extension is where a brand releases some of its items that has a twist. Have you heard of Coke Zero Sugar or Diet Coke with Lime? The same drink is available with a brand new name and it's got the appealing flavor that draws the loyal customers of Coca-Cola to taste it. Line extensions tend to be more secure since they're in the same category of product. Sometimes, a brand line extension is also called a vertical extension because it can also apply to products which have tiered alternatives. TVs are a great example of this as it is possible to purchase the same TV in a different size or with more features added - to put it simply it is possible to select cheaper options or an upgraded version of the same model.
However, the brand extension can be an entirely new product in the form of a brand new line of product such as, Dyson Supersonic(tm) hair dryer. Dyson is a great instance. Once only known for its vacuum products, the company made use of its expertise to expand its products into the world of beauty through the release of an ingenious hair dryer and different hair styling tools. It paid off hugely. In some consumer segments, the public is more aware of Dyson's hair dryer than its new vacuum cleaner. It's also referred to as a horizontal extension of a brand that is when a brand's parent creates an entirely new product under it.
Real-life brand extension examples
We mentioned before that extension of brands are commonplace nowadays. We've probably tossed around several examples in the past and here's five additional brand extensions that are real that you can use as a reference for your come up with ideas.
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker hailing from Mexico which is owned by Coca-Cola. It is recognizable by its bottle with a distinctive taste and logo. The latest extension of the brand can be described as Topo Chico Hard Seltzer - sparkling water that has been spiked. The brand has entered a new product category by selling alcohol-based drinks and is enjoying great success thanks to its reputed authority in the beverage space. It's paid off: its latest product was the third fastest brand for hard-seltzer nationally this year.
- Apple Watches
Apple - we all know the brand, and we most likely have used or utilized its products in the past. Because the company was founded as a computer company, its Apple Watch product is a obvious example of a brand extension. The product itself can literally be seen as an upgrade of iPhone - while at first, the success was slow, with a strategic marketing strategy and a focus on fitness and health Apple consumers jumped at the chance to purchase the new product. Plus it is the case that Apple Watch is an extension of the iPhone. Apple Watch has a brand line extension of its own as Apple constantly releases new versions featuring different price levels.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in revenues in the first year, it was one of the best-performing known brands that were fronted by celebrities. Given the reputable reputation and strong following of Fenty Beauty, Fenty Skin was created. Rihanna introduced her skin care line strategically; Fenty Skin is marketed as gender-neutral and all-inclusive skincare line - which is different from many existing skincare companies. This is a fantastic illustration of an extension of the brand that has enthused a larger market to a brand's parent.
- Amazon and Whole Foods
When Amazon purchased Whole Foods, everyone did a double-take. However, this unorthodox combination resulted in a revolution in the way that customers shop and buy grocery items. It is a unique model of brand extension because, when Amazon bought Whole Foods, the grocery chain retained its own brand. But, by utilizing Amazon's loyalty program that offers discounts on groceries The delivery service was able to expand its branding into a completely new segment.
- Star Wars Franchise
The industry of entertainment is known for its brand extensions! Spin-offs, sequels, and adaptations to TV are just a few methods that companies in the entertainment industry create brand extensions. Star Wars is a great illustration with a variety of television shows, franchises, video games, merchandise, and books. There's even a theme park in Disneyland. The Star Wars franchise has generated a loyal customer base and Disney has recognized this and has not just created new fans around it but profited well from the various extensions to its products.
What is the best way to create the extension of your brand for an online-based entrepreneur
While it's easy to envision brand extensions in relation to physical goods, for internet-based entrepreneurs, the possibilities for the expansion of your brand are endless.
Craig Beck is an outstanding example of an online knowledge entrepreneur who has used his brand to create several brand extensions. Utilizing , Craig has launched a variety of digital products - not just does he offer the most popular and popular addiction coaching services, but he's also broadened his business to encompass personal coaching as well as investment coaching! He has successfully extended his coaching brand into different categories which has allowed the brand to expand its audience as well as his revenue.
Developing a brand extension as an online entrepreneur should come from three fundamental parts:
- research: We cannot stress this enough, research! And we specifically mean audience research. Surveying your core customer group is essential for brand expansion. Without their loyal backing, you'll likely expect a product to flop. Send a survey out in your local community, conduct an online focus group or have a town-hall Instagram live so you can get your audience's opinion.
- Make your HTML0 extension with the parent brand in mind:When creating an extension for your company, be sure that you do not dissociate the product from the parent brand. Whether you want to have the same brand name or logo, theme or even a line, you'll want your brand extension to be recognized.
- Beta test: The beta tests that are typical of digital products as well as software. A beta test is where you make your product or update to a select sample of customers first, to gauge their responses as well as work out any issues, and more. It's an excellent opportunity to experiment and receive feedback before you spend time and money developing a full brand extension that could be not successful.
The most appealing aspect of testing a new brand extension to digital goods is that you'll hardly have to spend money - you could offer your program or site membership for free without having the expense of manufacturing the physical item. It's an win-win.
Beware of the following words regarding extension of brands
It's a fact that branding extensions could fail when done badly. Remember the IHOb/IHOP debacle of 2018? IHOP increased its branding with new burgers, and, in a publicity campaign, changed its logo to IHOb. Though it received a lot of attention, many thought it was more like an April Fools Joke instead of being a branding extension. After fans and competitors ridiculed the business online, there was no official success with its brand upgraded and new items (burgers) which was a disaster for the restaurant chain.
What lessons can we take from these failures? Research and utilize your followers as the main source of new ideas as well as digital product launches. Avoid entering into an area where there is less credibility as it can result in a costly loss.
Building your brand and products
If you're an online business owner seeking to expand your brand in the right way, completing the right analysis and scrutinizing will help you to create brand extensions that will increase your current audience and bring new customers into your circle.