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

or

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 ?
Because they allow companies to share or mitigate the risks, such partnerships have become a popular way of bringing brand extensions to market.
When nonprofits attach their names to brand extensions that are a good fit with their organizational mission and values, they can build brand recognition and significant revenue," said Martyn Tipping, one of the survey's authors and president of TippingSprung, which along with Brandweek magazine produced the survey.
These goals will be met not only through brand extensions but also three a three-year cost savings target of $400-500 million.
market share of top brands, and suggestions on nicotine-free cigarette brand extensions, please see: www.
While there are a number of potential positive outcomes associated with brand extensions, there could be some negative results as well.
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.
Brand extensions are a common revenue generation tactic as they allow a team to enter a new product category while taking advantage of a pre-existing brand name and the image associated with that parent brand name (e.
At Hard Rock, Tomasso oversaw one of the world's most recognizable brands and helped guide the company into successful brand extensions including hotels, casinos, licensing and e-commerce.
Instead, brand extensions are usually the means of choice to introduce new products.
Market research studies that mimic a typical shopping environment with visual information and competing brands will reveal greater potential for high-status brand extensions
Sardina's years of successful leadership of the company in growing market share, developing flagship brand extensions and integrating strategic acquisitions.