What is the brand extension?

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brand extension is basically a spin-off product with the same brand as a parent product. These new products are usually closely related to the original. A good example of the brand extension is the Reese's® peanut butter. The company, which was already known for its candy based on peanut butter, has begun to launch a number of standard, non -cake peanut butter butter. Companies use the brand extension to introduce the brand name to multiple locations, which increases the number of times the consumer will see it during the shopping trip.

To be successful, the original brand usually needs immediate name recognition and a good reputation. It also helps if the Spin-off product focuses as a parent product, so consumers combine a good reputation as a new product. In Reese's® cases, the company creates a wide range of peanut butter candy candies available around the world. As a brand, it is almost synonymous with its product. As a result of thisProducts such as peanut butter, baking pan and peanut butter baking trays. All these products are similar to the original candy of peanut butter, but different enough to have other competitors and placement in the grocery store.

brand extension can be risky for the parent company. Often they have to invest in research and equipment to create a new product and then spend money on its introduction. One unsuccessful extension can lead to millions of lost dollars and potentially damage the company's reputation. In order to determine whether their customer base is ready to try new products, many companies will decide to extend the product as the first step. These are products that take up the same location as the original product and attract the same customers. For example, Mountain Dew ™ produces a soda brand, then offers more than ten varieties of Mountain Dew ™. EveryoneFrom these soda, they attract the same market as the whole, but each has a slightly different specialized audience.

Product extension is often considered to be the first step to expand the brand. The company extends its reach in small additions through new products in its own sphere of influence. As it gains a market share in its original area, it can use a stable intake and increased consumer base to move to other areas and create a brand extension.