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 ?
According to one amendment, brand stretching, which refers to the application of cigarette brand names, logos or other distinctive elements of cigarette brands and their ads to nontobacco products, was prohibited.
Carol Garbutt, marketing director for Walkers, says that the reason for the increased amount of brand stretching is that consumers are demanding it.
CHICAGO-With All-Clad moving into electrics, and Oster and Bodum getting into cookware, its obvious there's some brand stretching going on.
For many retailers, the verdict on the most recent round of branding is still out, leaving buyers to debate the merits of brand stretching.
In what must rank as one of the year's most innovative examples of brand stretching, French mineral water brand Evian has lent its name to a new 13-strong skincare range.
Brand stretching has been taken up by Monkhill Confectionery, part of Cadbury Trebor Bassett, which is stepping out of the sweets fixture with a miniature range specifically targeted at the cake, ice cream and dessert toppings sector.
And the decision to call it by the same Theakston Cool Cask name is one of the crassest examples of brand stretching I have come across.