What is a brand extension? + 5 examples for inspo
We as consumers see and use brand extensions every day without even realizing it. Whether we are sipping an exclusive Pepsi brand while watching TV, checking out the aisles of frozen food at the grocery store, or online shopping to purchase a new moisturizer, most likely the product fits within the parent brand, as an extension of what the company originally offered.
Why do companies have extension of their brand names? If you guessed money then you're correct! Although some businesses thrive on the idea having a product that they can master, the real reason businesses have brand extensions is that they can be very profitable, if they are the company is successful.
What's a brand extension?
Let's make sure we understand the concept of "brand extension" clear first. On the outside, it appears to be an elaborate corporate marketing phrase However it's quite simple.
A branding extension is when an established business or organization begins offering a new service or offering in an entirely new area under its brand name.
The difference between brand extension and line extension
Instead of delving in the finer details of every way you can create a brand extension for your product (there are a lot) The two main ones that all entrepreneurs should be familiar with is a brand and the line extension. While they are both forms of extension for your product There are some important distinctions.
A brand line extension is where a brand releases an item with a twist - ever heard about 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 fans of Coca-Cola back to sample the product. Line extensions generally are less risky since it's part of the same product line. Sometimes, a brand line extension may also be called vertical extensions because they can also apply to products that have tiered choices. TVs are a good illustration of this since you can buy the same television in different sizes or one with more features for example it is possible to select more affordable options or an upgraded version of the same product.
However, the brand extension can be an entirely brand new product within a new product line We're thinking of you, Dyson Supersonic(tm) hair dryer. Dyson is an example. Initially, it was only known for its vacuum cleaners, the company used its technology to extend its offerings into the world of beauty by releasing an innovative hair dryer as well as other hair styling tools. And it paid off - hugely. In some consumer segments, more people now know about Dyson's hair dryer than its new vacuum cleaner. This is also known as a horizontal brand extension that is when a brand's parent creates an entirely different product beneath it.
Real-life brand extension examples
Like we said earlier, brand extensions are prevalent everywhere nowadays. There are many examples we've used. a few examples already and here's five more real-life brand extensions that you can use as a reference for your brainstorm:
- Topo Chico Hard Seltzers
Topo Chico is a well-renowned mineral water maker that hails from Mexico and now is part of Coca-Cola. The bottle is well-known, taste, and logo. The latest extension of the brand includes Topo Chico Hard Seltzer - spiked sparkling water. It entered a brand new category of products by offering alcohol-based drinks and has seen major success due to its established status in the beverage space. The investment paid off as its latest product was the third fastest hard seltzer brand selling in the country last year.
- Apple Watches
Apple is a brand that we are all familiar with it and most likely use or had utilized its products previously. As the company began by selling computers, its Apple Watch product is a obvious example of a brand extension. It can be seen as an extension of the iPhone and, although initially, it was not a huge success but after a smart marketing effort and a focus on fitness and health Apple customers jumped on board to purchase the brand new device. Plus, Apple Watch is an extension of the iPhone. 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 during the initial year. it was one of the best-performing brand owned by celebrities. Due to the reputation and strong following that is Fenty Beauty, Fenty Skin was created. Rihanna has launched her skincare range with a deliberate approach; Fenty Skin is marketed as a gender-neutral and all-inclusive skincare line - which is different from many existing skincare brands. This is an excellent instance of a brand expansion that has enthused a larger audience into a parent brand.
- Amazon and Whole Foods
When Amazon bought Whole Foods, everyone did a double-take. But, this unlikely combination resulted in a revolution in the way that consumers shop for and purchase food items. It is a unique brand extension example because the moment Amazon acquired Whole Foods, the grocery chain retained its own brand. But, by utilizing Amazon's loyalty program to get discounts on grocery items The delivery service was able to expand its brand into a new category.
- Star Wars Franchise
The entertainment industry is famous for its brand extensions! Sequels, spin-offs, and TV adaptations are all methods that companies in the entertainment industry develop brand extensions. Star Wars is a great model with multiple television shows, franchises and video games, as well as books, merchandise, and an even theme park located at Disneyland. The Star Wars franchise has created extremely loyal customers and Disney has recognized this and did not just create new fan bases around it but profited well from its various product extensions.
How do you create an extension of your brand name as an online entrepreneur
While it's easy to envision branding extensions for physical products, for online entrepreneurs, the possibilities of extending your brand are endless.
Craig Beck is the perfect instance of an online-based knowledge entrepreneur who has used his brand to create several extension of his brand. With the help of , Craig has launched a number of online products not only is he the owner of the most popular and popular addiction coaching, but he has expanded his brand's offerings to encompass personal coaching as well as investing coaching! Craig has been able to expand his coaching brand into different segments, which has enabled Craig to increase his following as well as his revenue.
Developing a brand extension as an online entrepreneur should come with three essential components:
- research: We cannot stress enough research! We specifically refer to audiences research. Conducting a survey of your primary customer base is critical for brand extensions. If you don't have your faithful followers' support, you can most likely see your product flop. Send a survey out in your community, lead an online focus group or host a town hall Instagram live so you can get your audience's opinion.
- Design with your parent brand in mind:When creating the extension of your branding, you must make sure that you do not dissociate your brand from its parent brand. Whether you want to have the same brand name, logo, theme, or line, you want your branding extension to be easily identifiable.
- Test for beta: Tests for beta are common among digital products and software. A beta test is where you make your product or update to a select number of people first to observe their reaction as well as work out any issues or issues, and much more. This is a fantastic opportunity to experiment and gather feedback before you spend time and money creating a branding extension, which could prove unfavorable.
One of the best things about the process of testing brand extensions to digital goods is that you'll hardly have to pay for it - you can offer your new program or site membership at no cost without having to purchase manufacturing costs for the physical item. It's the win-win.
Words of caution regarding extension of brands
Let's be honest - branding extensions could fail in the event of poor execution. Do you remember the scandal of IHOb/IHOP in 2018? IHOP expanded its brand offering by offering new burgers and making a public relations move, changing their brand's logo from IHOp to IHOb. While it garnered attention however, some thought it was more like an April Fools Joke instead of a brand extension. Following the scathing comments of competitors and fans about the company on the internet, there was no public announcement of the success of its upgraded and new items (burgers) and the whole thing resulted in embarrassment for restaurant chain.
What can we gain from these failures? Research and utilize your followers as the main resource for new ideas and launch of digital products. Avoid entering into a new niche where you have less authority and it may be costly for you.
Growing your brand and products
If you're an online entrepreneur trying to grow your business with the correct method by conducting the appropriate study and screening will allow you to create branding extensions that increase your current audience and invite new members into your ranks.