Strong brand identity and clear, consistent messaging are what will enable you to stand out from the competition. Brand extension is the process of extending a brand's reach by introducing new products into new categories.
Brands that have already established themselves are known to engage in this practice as well; they look downmarket and see potential where others might not - consumers who like one type may buy anything branded with its familiar branding elements.
The power of brand extension is undeniable. Businesses can evaluate product category opportunities, identify resource requirements and even lower their chances for failure when expanding into new markets with an established name.
What are the advantages of collaborations and brand extensions?
They can help the product be easily accepted.
They can improve the overall brand image.
Since the company has established the brand name as trustworthy and popular, they can also increase the interest of consumers and make them consider a new product. That also leads to better distribution.
Companies spend less money on promotional expenditure, or the money is better used. By promoting the core brand, companies are also promoting the extension. The same goes if they are promoting the extension – the core brand will gain recognition as well.
Companies don’t have to develop a new brand from scratch and spend lots on it.
Consumers get more variety than before.
Brand extensions help revive the brand.
One brand extension allows for more extensions in the future.
The extensions clarify what the brand stands for.
They attract new customers, as the brand expands on the market.
In short, brand extension is a strategy to grow your brand in a steady way, expanding not only your product ranges but also enticing your audience into new exciting offerings.
If you are interested in building your own brand or expanding it into new categories, get in touch - we are happy to help.