When they extend a brand name associated with one line of products to another?
If you’re in marketing, you may have heard the terms sub-branding and brand extension. But what’s the difference? Well, there’s a big difference. Let’s break it down. Show What is sub-branding? Pros of sub-branding: Successful sub-brands can help advertise and increase exposure for the parent brand. They help establish brand loyalty and trust. Consumers who trust a main brand are more likely to try a new product under the main brand. Take for example, Apple, Inc. Anytime Apple debuts a product, say an iPhone, iPad, iPod, etc. it capitalizes on the halo effect. People trust Apple as a brand and in turn trust the products they produce. Examples of successful sub-brands
Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Sometimes, sub-brands can be unsuccessful. This failure can negatively impact the parent brand and affect loyalty, trust and business. Bad customer experiences can also lead to the tarnishing of the sub-brand and parent brand’s image. Sub-brands may also require corporate restructuring to accommodate the new brand and its identity. There may be confusion between the main brand and sub-brand identity. This confusion contributes to the diluting of the main brand’s power and identity. Examples of unsuccessful sub-brands
What is a brand extension? Pros of brand extension: Upon success of the initial brand, other areas the brand could explore would have to be strategically calculated. As Brand Packaging notes, a brand’s fit and leverage are key to successful brand extensions. Recognizing another category your brand may fit is only half of the strategy. Leveraging how to market the new category is the other half of the equation. Brands need to identify the advantages of a new category as well as how this category will bring success to the brand. Another advantage would be that brands do not need to spend money on rebranding. Most brand extensions use the same brand standards of the parent brand. Examples of successful brand extensions
Photo by Brand Packaging Cons of brand extension: Sometimes brands extend into areas that are not natural fits. Other times, brands keep extending without rhyme or reason. This causes confusion around the parent brand. Like sub-branding, brand extensions can be expensive. Additional costs will be needed to promote and maintain the new brand. Examples of unsuccessful brand extensions
Here are five questions to consider before creating a sub-brand or brand extension: If you market a brand and are considering sub-branding or brand extension, consider the following questions:
If you can confidently answer yes to all of the above, the next step would be to determine which makes more sense for your business: brand extension or sub-branding. Once this is determined, brands must still consult the pros and cons of sub-branding and brand extension before proceeding. Feeling inspired? Perhaps it’s time for your brand to communicate more visually. Download our latest, free guide “ What is line extension in branding?What is a brand line extension? A company introduces a brand line extension by using an established product's brand name to launch a new, slightly different item in the same product category. For example, Diet Coke™ is a line extension of the parent brand Coke™.
What is a product line extension strategy?Product line extension is a marketing strategy that uses an established brand to introduce a new item into the same product line. The new item may differ slightly from what a company already offers, such as in flavor, color, form, ingredients or packaging size.
What are the types of brand extensions?Types of brand extensions. Product extension. Product extension occurs when a business releases new products separate from what they're currently offering. ... . Line extension. ... . Customer franchise extension. ... . Company expertise extension. ... . Brand distinction extension. ... . Transfer of component extension. ... . Extension by leveraging a lifestyle.. What are some examples of product line extensions?An excellent example of a line extension is when soft drink companies introduce new flavors to their existing drink lineup. Other examples could include introducing new scents, sizes, and colors to a product line.
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