What's an extension of a brand? + 5 examples for inspo
We as consumers see and utilize brand extensions each and without even knowing it. It doesn't matter if we're sipping an exclusive Pepsi brand while watching TV, checking out the aisle of frozen foods at the store or shopping online for a new moisturizer - most likely the product fits within the parent brand, and is an extension of what the company originally offered.
Why are companies using extension of their brand names? If you guessed money it's true! While some companies thrive off having a product that they can master but the main reason why businesses have brand extensions is that they can be extremely profitable - if the company is successful.
What is a branding extension?
Let's set the meaning of "brand extension" straight first. It appears to be a fancy corporate marketing term however, in actuality, it's pretty straightforward.
Brand extension is when a branding extension is the time when a well-established business or company starts selling a brand new item or offering in the new market segment using its brand name.
The difference between extension of brand and line extension
Instead of getting deep into the details of each way you can create an extension of your brand for your product (there are many), the two that every entrepreneur should be familiar of are brand extensions and a line extension. Although they're both types of product extensions, there are a few fundamental differences.
Brand line extensions are when a company launches one of its products that has a twist. Have you thought about Coke Zero Sugar or Diet Coke with Lime? The same drink is available but in a different form - but, it has appealing flavors that will draw the loyal customers of Coca-Cola to sample it. Generally, line extensions are more secure since they're within the same product category. In some cases, a line extension can also be referred to as a vertical extension because it could also be applied to products with tiered options. TVs are a good example of this as they can be purchased as a TV in a different size or with more features added for example it is possible to select cheaper options or an upgraded version of the same product.
On the flip side, a brand extension is an entirely different product that is part of the form of a brand new line of product - we're looking at you, Dyson Supersonic(tm) hair dryer. Dyson is an illustration. Initially, it was only known for its vacuum cleaners, the company utilized its technological know-how to broaden its product line into the beauty industry through the release of an ingenious hair dryer and various other tools for styling hair. It paid off massively. There are segments of the population where more people now know about Dyson's hair dryers than the latest vacuum cleaner. This is also known as a horizontal brand extension which is where the parent company produces a brand different product beneath it.
Experiments with real-world brand extensions
Like we said earlier, brand extensions are everywhere these days. We've probably tossed around several examples in the past, but here are five additional brand extensions that are real that you can use as a reference for your brainstorm:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker hailing from Mexico and now is owned by Coca-Cola. The bottle is well-known with a distinctive taste and logo. Its latest brand extension includes Topo Chico Hard Seltzer - sparkling water that has been spiked. The company entered a new category of products by offering alcoholic beverages and it has had a huge success thanks to its established status in the beverage space. It paid off - it was the third-fastest brand for hard-seltzer nationwide this year.
- Apple Watches
Apple We all have heard of it and most likely use or have used some of its products previously. As the company began by selling computers and smartphones, the Apple Watch product is a obvious example of a extension of the brand. It can be seen as an upgrade of iPhone - while at first, it was not a huge success 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 there is that it is a brand new product. Apple Watch has a brand line extension since Apple constantly releases new versions featuring different price levels.
- Fenty Skin by Rihanna
After Fenty Beauty generated $550 million in sales in the first year, it was one of the top known brands that were fronted by celebrities. Due to the authority and loyal audience that is Fenty Beauty, Fenty Skin was created. Rihanna introduced her skin care brand in a strategic way; Fenty Skin is marketed as gender-neutral and all-inclusive skincare line - which is different from other skincare brands. This is an excellent example of a brand extension which has brought a wider public to join a larger brand.
- Amazon and Whole Foods
When Amazon bought Whole Foods, everyone did take a second look. This unlikely pairing resulted in a revolution in the way that consumers shop for and purchase grocery items. This is a singular brand extension example because it was the case that when Amazon purchased Whole Foods, the grocery chain retained its own brand. With the help of Amazon's loyalty program that offers discounts on grocery items, the delivery service successfully extended its branding to a brand new market.
- Star Wars Franchise
The industry of entertainment is known for brand extensions! Sequels, spin-offs and adaptations to TV are just a few methods used by entertainment companies to create brand extensions. Star Wars is a great example with several different series, franchises, video games, books, merchandise, and an even theme park at 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 through its numerous product enhancements.
What is the best way to create the extension of your brand as an online entrepreneur
While it's easy to envision brand extensions in relation to physical goods, for internet-based entrepreneurs, the options for expanding your brand's reach are limitless.
Craig Beck is an excellent illustration of an internet-savvy businessman who's used his own brand name to come up with a number of extension of his brand. With the help of , Craig has launched a number of online products not just does he offer extremely popular and successful sobriety coaching, but he has broadened his business to include personal coaching and investing coaching! Craig has managed to extend his brand of coaching into various categories which has allowed Craig to increase his following and revenue.
The process of developing a brand extension for an online business owner should be done in three crucial parts:
- research: We cannot stress enough research! This is specifically referring to audience research. The research of your most loyal customers is essential for brand expansion. Without their loyal support, you can most likely expect a product to flop. You can distribute a poll to your community, lead an online focus group, or hold a town-hall Instagram live in order to solicit opinions from your fans.
- Make your HTML0 extension with the brand's parent company in mind:When designing an extension for your company, be sure you don't distance your product from your parent brand. It doesn't matter if you'd like to utilize the same name for your brand or logo, theme or line, you want your brand extension to be recognized.
- The beta test Beta tests are frequent in digital goods and software. A beta test is where you launch your brand new product or update to a select number of people first to observe their reaction as well as work out any issues, and more. This is a fantastic method to try out the product and receive feedback before you waste time and money on developing a full branding extension, which could prove unfavorable.
The best part about trying out a brand extension to digital goods is that you'll hardly have to invest money. You could offer your program or site membership for free without having to spend manufacturing money on an actual product. We call that a win-win.
Beware of the following words in relation to extension of brands
It's a fact that brand extensions can fail if done poorly. Remember the IHOb/IHOP debacle of 2018? IHOP extended its brand with new burgers, and making a public relations move, changing their image to IHOb. While it garnered attention but many believed that it was more an April Fools Joke instead of being a branding extension. Following the scathing comments of competitors and fans about the business on the internet, there was no public announcement of the success of its innovative and better product (burgers) which ended in embarrassment for the restaurant chain.
What lesson can we learn from these failures? Conduct your own research and consider your audience as the key source of new ideas as well as digital product launches. Be careful of venturing into a new niche where you have less authority - it could be costly for you.
Enhancing your brand's image and your product
If you're an entrepreneur on the internet looking to extend your brand with the correct method, completing the right study and screening will allow you to create brand extensions that will increase your current audience as well as bring in new people to your fold.