brand extension

(redirected from Brand extensions)
Also found in: Dictionary.

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 ?
Hypothesis 2a: Metaphor advertising will increase consumers' brand extension evaluations under the condition of good fit brand extension and decrease consumers' brand extensions evaluations under the condition of poor fit brand extensions.
In a similar study in Taiwan it was found that using professional baseball teams as brand extensions could have an impact on the parent brand's image (Walsh, Chien, & Ross, 2012).
Leveraging brand equity through brand extensions is a strategic option for a firm looking to grow.
In the same line of thought, one can achieve a reduction in risk perception by consumers (KELLER, AAKER, 1992; MARTINEZ, PINA, 2005; KELLER, MACHADO, 2006; NEERAKKAL, 2011) and an increase in promotional efficiency (SULLIVAN, 1992; SMITH, 1992; SMITH, PARK, 1992), and other types of association regarding brand extensions done properly, which generate favorable perceptions of the credibility of the company that owns the extension (KELLER, AAKER, 1992; MARTINEZ, PINA, 2005).
During the past 10 years, net new brand extensions yielded average year-one sales that were 70% higher versus brand extensions.
Brand extensions that represent significant new products in new product categories can do just that.
If the parent brand is already associated with multiple products through brand extensions, then it is known as a 'family brand'.
New brand extensions are often tested in an abstract setting (e.
Brand extension is just like expanding your family.
In aggregate level analysis, the data of all individual brand extensions were grouped in SPSS and regressed to get combined result of all brand extension for individual variables.
Pet products, home furnishings and coffee were among the best nonprofit brand extensions last year, according a recent survey.