What Are The Various Types Of Brand Extensions Explain With Necessary Examples Wherever Required?

What is concept of product life cycle?

The term product life cycle refers to the length of time a product is introduced to consumers into the market until it’s removed from the shelves.

The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline..

What are the 5 stages of the product life cycle?

The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages: development, introduction, growth, maturity, and decline.

What is the main risk of a brand extension or a line extension?

Risks of Extending a Brand First, any time a company introduces a new brand or line, the company name could become tarnished if the product proves to be an immense failure. Consumers might feel less inclined to support the company’s new products in the future.

What are the 4 product line expansion?

There are four “stages” of the life cycle of a product: introduction, growth, maturity, and decline. The launch is exciting and is often followed by a surge of sales, but at some point, the product will wear itself out.

What are the 4 branding strategies?

The four brand strategies are line extension, brand extension, new brand strategy, and flanker/fight brand strategy.

Is brand extension good or bad?

Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/original brand.

What are the 5 pricing strategies?

Types of Pricing StrategiesCompetition-Based Pricing.Cost-Plus Pricing.Dynamic Pricing.Freemium Pricing.High-Low Pricing.Hourly Pricing.Skimming Pricing.Penetration Pricing.More items…•

What is the need for brand extension?

Brand extensions can also benefit the parent brand by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent brand’s relevance in its existing category. Extensions can also help to establish a brand’s position in new categories.

What is an example of extension strategy?

Extension strategies include rebranding, price discounting and seeking new markets. Rebranding is the creation of a new look and feel for an established product in order to differentiate the product from its competitors.

How does Apple use brand extension?

Apple (AAPL) is an example of a company that has a history of effectively using a brand extension strategy to propel growth. Starting with its popular Mac computers, the company has leveraged its brand to sell products in new categories, as can be seen with the iPod, the iPad, and the iPhone.

How do I extend my brand?

Following are descriptions of the four primary ways you can extend a brand:Line Extension. The easiest way to extend a brand is to add branded products within the existing product line. … Category Extensions. … Market Extensions. … Geographic Extensions.

What is the difference between brand extension and line extension?

A product line extension is the use of an established product brand name for a new item in the same product category. … This is as opposed to brand extension which is a new product in a totally different product category. Line extension occurs when the company lengthens its product line beyond its current range.

What is a family brand example?

Family branding is a type of marketing tactic. It involves using one brand name to market multiple products. For example, a company may use one brand to market soap, lotion, hair shampoo, and nail polish. … For example, a company may sell lipstick and nail polish, giving each product line a separate marketing identity.

Why do brand extensions fail?

1 reason why some brand extensions fail is simple: they don’t bring enough meaningful value to the consumer. … Its McPizza product flopped because consumers thought its value proposition was too similar to established competitors such as Domino’s and Pizza Hut.

What is the main benefit of adding a new product line?

Expanding product lines enables a company to target consumers who are either already buying the brand or are likely to buy the brand.

What is a product line extension strategy?

A product line extension strategy is an approach to developing new products for your existing customers or for prospects who do not currently buy from you. Extending a product line involves adding new features to existing products, rather than developing completely new products.

What are the types of brand extension?

8 Types Of Brand ExtensionSimilar Product In A Different Form From The Original Parent Product. … Distinctive Flavor/Ingredient/Component In The New Item. … Benefit/Attribute/Feature Owned. … Expertise. … Companion Products. … Vertical Extensions. … Same Customer Base. … Designer Image/Status.

What is an example of brand extension?

A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product. Some example of brand extension are: Apple: from personal computers into MP3 players. Callaway: from golf clubs into footwear, apparel and golf accessories.