Line extensions
when a company launches an existing product and brand name in the same product category with the
same name by adding new flavor, changing form or color of the product, or changing ingredients or
package sizes,it comes in the category of line extension.
These line-extensions are commonly used in dairy products, and shampoo s
Category extensions-
However, launching a new or modified product in a new category but using
successful brand name would be category brand-extension .
A brand that has strong awareness can easily be launched in new product
category, as the level of recognition and acceptance for such product is higher.
Examples:
NIVEA it is into different products such as creams for women, shampoos, deodarants, If the brand is of
high quality, and if there is resemblance (fit) between the
new product category and brand, and if a company has relevant expertise
then the chances of successful brand extension would be bright .
One of the problems in brand extensions is that customers might think that the
company already offers this product and is not new in the new product form
Despite this problem, the acceptance of the new brand will
be higher for those brands that have strong associations with the brand as
compared to reasonably familiar or weak brand .
Consumers while evaluating the brand extensions tend to assess its suitability
in the relevant product category and the brand’s original category. If the
customers’ perception is positive toward the suitability, then the degree of
acceptance would be higher . If the customers do not find any
suitability between original brand category and brand extension category then
the brand extension would adversely affect the brand equity of the company
Since last one decade, brand extension is getting
extensive coverage in the academic and trade journals and is extensively
used as growth strategy; therefore, it could be attributed as a branding
strategy.The firms do not deliberate on whether to adopt brand extension strategy or
not. What they deliberate on is timing (when) and place of brand extension
Early 1990’s recession forced the firms to follow cost
saving strategies so that they could be more competitive. This resulted in
extensive usage of this extension strategy .
Whether a brand could be extended or not is very difficult, therefore, such decisions
must be made on “combination of market research, experience and common
sense.” The firm must understand the managerial process involved in brand extensions and study the
factors that contribute to the success of brand extensions.
when a company launches an existing product and brand name in the same product category with the
same name by adding new flavor, changing form or color of the product, or changing ingredients or
package sizes,it comes in the category of line extension.
These line-extensions are commonly used in dairy products, and shampoo s
Category extensions-
However, launching a new or modified product in a new category but using
successful brand name would be category brand-extension .
A brand that has strong awareness can easily be launched in new product
category, as the level of recognition and acceptance for such product is higher.
Examples:
NIVEA it is into different products such as creams for women, shampoos, deodarants, If the brand is of
high quality, and if there is resemblance (fit) between the
new product category and brand, and if a company has relevant expertise
then the chances of successful brand extension would be bright .
One of the problems in brand extensions is that customers might think that the
company already offers this product and is not new in the new product form
Despite this problem, the acceptance of the new brand will
be higher for those brands that have strong associations with the brand as
compared to reasonably familiar or weak brand .
Consumers while evaluating the brand extensions tend to assess its suitability
in the relevant product category and the brand’s original category. If the
customers’ perception is positive toward the suitability, then the degree of
acceptance would be higher . If the customers do not find any
suitability between original brand category and brand extension category then
the brand extension would adversely affect the brand equity of the company
Since last one decade, brand extension is getting
extensive coverage in the academic and trade journals and is extensively
used as growth strategy; therefore, it could be attributed as a branding
strategy.The firms do not deliberate on whether to adopt brand extension strategy or
not. What they deliberate on is timing (when) and place of brand extension
Early 1990’s recession forced the firms to follow cost
saving strategies so that they could be more competitive. This resulted in
extensive usage of this extension strategy .
Whether a brand could be extended or not is very difficult, therefore, such decisions
must be made on “combination of market research, experience and common
sense.” The firm must understand the managerial process involved in brand extensions and study the
factors that contribute to the success of brand extensions.