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 ?
This study, along with replicating the Aaker and Keller's (1990) model, also examines the relationships of the variables at the brand level and compares the findings with some of the later studies conducted on the phenomenon of brand extension to get additional insights.
But they aren't the only brand to have tip-toed onto the landmined territory that is "brand extension." The basic ploy is to take an established brand name or identity -- one known for its excellence in a given category -- and to apply it in a totally different category.
The findings from this research have implications for manufacturers of moderate quality brands in particular, and brands that are pursuing growth opportunities by a brand extension strategy.
(1991): "A Process-Tracing Study of Brand Extension Evaluation", Journal of Marketing Research, 28 (Febrero), pp.
In this case, independents should be more sensitive to a brand extension with abstract features and contextually invariant traits, even if it is a cross-category extension, because product-level elements (e.g.
Additionally, when the brand extension is perceived as similar, this results in favorable feedback of the positive evaluations towards the parent brand (Aaker, 1990), strengthening the basic relationship of the brand that makes it different and unique, reinforcing the brand image, contributing to the brand equity, and increasing purchases of products of the same brand (Buil et al., 2009).
While brand extensions and licensing used to be considered two distinct branding strategies, extant literature suggests that licensing should be treated as an "external" brand extension (Walsh et al., 2014).
Margins in the used-vehicle business have been temporarily pressured from AutoNation's "One Price" strategy rollout, and the company has incurred elevated selling, general and administrative (SG&A) costs as it implements its brand extension strategy.
According to Bridger, as a brand extension of Rove Hotels, Rove Home will essentially share the same 'DNA', with a similar focus on design, connectivity, local neighborhood emphasis and accessible price points, but "targeting longer stays".
Its managing director, Audrey Tanco-Uy, one of this year's winners of the Mansmith Young Market Masters Award (YMMA), shares here her thoughts on diversification and brand extension.
TLC will develop a long-term brand extension strategy for Kodak focused on the audio-visual, technology, and communication sectors.
The post KEANITA Yoghurt: An innovative brand extension by KEANITA appeared first on Cyprus Mail .