Brand Extension Essay

grime generation service is a marketing system according to which a company marketing a product or a service launches a raw(a) offering (product or service) that is think to the one of the exist instigants of the company, but offers divers(prenominal) benefits and/or targets a several(predicate) segment. Organizations use this strategy to increase and leverage upon their fool equity. When a watertight is introducing a new product, it has the following 3 choices on spoting 1. ontogenesis a new grime for the new product2. Using the be firebrand for the new product3. Combining the new brand and the quick brandThe use of 2nd and 3rd strategy is referred to as brand appendix. Brands may be classified as one of the following enhance Brand If an existing brand gives birth to a brand extension, it is referred to as parent brand. Sub Brand When a new brand is feature with an existing brand, it is called as sub brand. Family Brand If a parent brand has links with multiple b rands through brand extensions then it is called as family brand.Brand Extension DimensionsThere are a large number of ship canal in which brand extension can be accomplished. One of the brisk differences is if the extension is in the same or different kin of the product. gum olibanum they can be classified as vertical or plain extensions.Vertical extensionsVertical extensions refer to the knowledgeability of a related brand in the same product kinsperson but having a different value and quality balance. Vertical extensions offer the firm a fast way to leverage upon the core products equity. As an extension strategy, vertical extension is widely practiced in many industries. For example, at bottom automobile industry, the various brand models attempt to offer different price-quality bundles to tempt various market segments. Often a product is offer uped in an attempt to just gain more of the market share.Vertical extension directionNew product introductions using vertical extensions can extend in 2 directions, upscale and downscale vertical extensions. The vertical brand extension is that type of new product introduction that seems to be carrying little risk and seemingly having more appeal to management. The new product which is organism introduced is in the same category as the parent product aims at a same market segment as the parent, and may or may not enjoy the same acceptance as the parent. upmarket vertical extensionsUpscale extensions involve a new product introduction by the firm with higher price & quality characteristics than the original product. downmarket vertical extensionsIt involves a new product introduction with lower price & quality characteristics than the original. Downscale vertical extensions may target sampling to a new segment, and bring some gain in market share. flat extensionsGenerally, horizontal brand extensions either use or extend an existing products name to a new product in the same product category or to a produc t category new to the organization. There are 2 types of horizontal extensions which differ in terms of their focus area. They are termed as line extensions and category extensions. government note ExtensionsAll the customers differ in terms of their usage needs. The brand has to surfeit the market with variety of products as per the needs of the segments. If a parent brand is used to brand a new product that targets a new segment in the market within the same product category that was previously served by the parent brand, it is called as line extension. Line extension leads to the addition of a new and distinct flavour or share to the category. It sometimes might also lead to a new action for the brand or an introduction of a different form or size. For example, Bisleri is the pioneering brand in category of mineral water. Originally, Bisleri started off with 1 ltr bottle. alone recently, the brand has launched bottles of different sizes and quantities.