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 ?
He explained how important is it to add value every time a product extension happens.
Uniloc's device locking technology will be available as a separate CodeArmor product extension in early December.
This report provides a detailed analysis of the global market for hormonal contraceptives and infertility drugs highlighting strategies for product extension and reformulation, sales forecasts to 2012 for leading products, and impact of late-stage pipeline drugs on the market.
The report includes insights for product extension and optimization, sales forecasts to 2012, and impact of late-stage pipeline drugs on the market.
Product extension via a focus on a pharmacogenomic outcome is attractive--specifically for large pharmaceutical companies.
WET N WILD'S COSMETICS LAUNCHES: Markwins International's wet n wild brand is introducing products for eyes and nails as well as product extensions this month.
Hilger moves from InBev in Germany, where as marketing director he was responsible for the double-digit growth of premium beer brand Beck's following the launch of product extensions such as Beck's Gold and Beck's Green Lemon.
We have developed natural product extensions, such as @griculture OnLine, the Successful Farming Radio Network and special interest publishing that capitalize on our powerful brand to offer unique and effective marketing solutions for agrimarketers and provide new products for farmers.
Bradley will be responsible for expanding marketing opportunities in bath and other product extensions, as well as brands My Room Too and www.
Motherwell, from Overland Park in Kansas, also provides services and product extensions for Renaissance, and had been teaming up with TTGI on several projects.
Suppliers watching the evolution of airbags, for example, like what they have seen: rising penetration rates; mandated installation; increasing sophistication (value-added advanced airbags); proliferation of product extensions (e.
Kurz was chief executive officer of 7 For All Mankind where he established a foundation for their international growth, product extensions, and licensing.

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