brand extension

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Brand Extension

The act or practice of adding a new product under the same brand name. This allows a company to introduce a new product without having to build up a whole new customer base for it. For example, when Jimmy Dean introduces a new flavor of sausage, it may put the Jimmy Dean name and logo on the wrapping. This is intended to encourage people who like other Jimmy Dean sausages to view the new flavor favorably and be more inclined to buy it.

brand extension


brand transference

the use of an existing BRAND for new or modified products. Where the new product is in a significantly different category this is called ‘brand stretching’. Brand extension seeks to capitalize on consumer awareness of and loyalty towards a firm's established brands in order to gain rapid consumer approval and acceptance of the new or modified product.

Where a modified product simply serves another segment of the same market the term brand extension is generally used (see MARKET SEGMENTATION). The term brand transference is used where an established brand name is associated with a new product serving a different market. For instance, the manufacturer of a well-known vacuum cleaner might use that brand name to launch a new product in some other market, for example washing machines. See PRODUCT POSITIONING.

References in periodicals archive ?
Brand extension strategies are seen as beneficial because of marketing efficiencies such as reduced new-product introduction expenditure and increased possibility of success (Aaker 1990).
Practice areas include brand extension + retail development, research + insights, design + identity, and operations + governance.
Despite the risks involved, many times brand extension decisions may be made with a myopic focus in hopes of realizing all of the benefits that come with a successful brand extension.
Brand extension strategy is utilised when a firm employs an established brand name to introduce a new product in a different product category.
It's no coincidence that many involve small or quirky brands and that the brand names tend to be writ large (unlike New Covent Garden's Sprout or Coca-Cola's Dasani, the example many experts cite as one of the earliest and biggest UK brand extension flops).
Pet products, home furnishings and coffee were among the best nonprofit brand extensions last year, according a recent survey.
The Michelin brand name is an asset," said Patrick Lepercq, director of Michelin's brand extension initiative.
FASTSIGNS International decided to test a brand extension to see if it could help high production capacity FASTSIGNS centers capture larger projects and larger customers, in different industry segments.
When a company or organization attaches their brand name to a newly created product which exists in a new product category, this is commonly referred to as a brand extension (Aaker, 1996).
The PC Plus brand extension, PC Helpdesk, covers areas such as Windows 98, ME, NT, 2000 and XP as well as Microsoft Office and various hardware, software and Internet-related topics.
titles on brand extension strategies, finding appropriate licensing partners, negotiating licensing agreements and supervising development of products and services bearing Time Inc.