What is the Brand Extension and What are the Benefits of it?

Brand Extension

A brand extension develops when a parent firm or item extends its brand label to a youngster company or product. For example, Starbucks Coffee prolonged its trademark name to ice cream.

Brand name expansions allow a marketing expert take a brand with famous quality understandings and associations and put it on a brand name in a new classification. Not only can online marketers maximize brand name awareness, they could likewise leverage off of the associations customers learn about the moms and dad brand. If customers understand that Arm and Hammer Baking Soda is deodorizing, they will immediately infer that Arm and Hammer cat litter will certainly be aerating too.

Secondly, consumers who favorably evaluate a parent brand are more about to attempt and embrace the brand name expansion compared to an unfamiliar brand in the exact same group. They trust a recognized brand label. For these factors, brand name extensions make brand-new product intro more economical.

Brand expansions could likewise aid a firm’s stock rates. Some scholastic study has actually located that Wall Street take care of brand name expansion statements which whether they like them or not depends on the amount of they like the parent band.

Brand name expansions could also help consumers know the center significance of the brand. When Arm and Hammer expands its label from cooking soft drink to antiperspirant, kitty litter, shoe inserts, its core “aerating” brand name concept is improved. Arm and Hammer MEANS ventilating – regardless of what it is on. So, in this sense, brand name expansions absolutely assist to build equity in the brand itself.

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