Brand Extension Essay

daub attachment is a commercializeing strategy harmonize to which a company grocery storeing a reaping or a supporter launches a untested offer uping ( overlap or service) that is cerebrate to the hotshot of the live strike offs of the company, solely offers clear-cut benefits and/or targets a divergent segment. Organizations use this strategy to increase and supplement upon their trade line equity. When a steadfastly is introducing a youthful harvesting, it has the following 3 choices on strike offing 1. Developing a crude commemorate for the revolutionary fruit2. utilise the exist brand for the brisk increase3. Combining the brisk brand and the existing brandThe use of 2nd and third strategy is referred to as brand annexe. provokers whitethorn be classified as one of the following Parent Brand If an existing brand gives birth to a brand generation, it is referred to as mention brand. Sub Brand When a new brand is have with an existing brand, it i s called as sub brand. Family Brand If a parent brand has relate with multiple brands through brand character references hence it is called as family brand.Brand Extension Dimensions in that respect are a large morsel of trends in which brand extension butt be accomplished. One of the live differences is if the extension is in the identical or different year of the growth. Thus they mess be classified as straight or even extensions. steep extensionsVertical extensions refer to the introduction of a related brand in the kindred product socio-economic class but having a different legal injury and quality balance. Vertical extensions offer the firm a quickest way to leverage upon the core products equity. As an extension strategy, just extension is widely practiced in some industries. For example, within automobile industry, the various brand models move to offer different price-quality bundles to make various market segments. Often a product is endureed in an atte mpt to just gain more of the market share.Vertical extension direction naked as a jaybird product introductions using vertical extensions can extend in 2 directions, upmarket and downscale vertical extensions. The vertical brand extension is that type of new product introduction that seems to be carrying less pretend and seemingly having more appeal to management. The new product which is being introduced is in the same category as the parent product aims at a same market segment as the parent, and whitethorn or may not enjoy the same acceptance as the parent.Upscale vertical extensionsUpscale extensions involve a new product introduction by the firm with higher price & quality characteristics than the certain product.Downscale 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.Horizontal extensionsGenerally, horizontal brand extensions either use or extend an existing products name to a new product in the same product category or to a product category new to the organization. There are 2 types of horizontal extensions which differ in terms of their focusing area. They are termed as line extensions and category extensions.Line ExtensionsAll the customers differ in terms of their usage involve. The brand has to strike the market with variety of products as per the needs of the segments. If a parent brand is utilize 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 ingredient to the category. It sometimes might also lead to a new application for the brand or an introduction of a different trope or size. For example, Bisleri is the pioneering brand in category of mineral water. Originally, Bi sleri started off with 1 ltr bottle. precisely recently, the brand has launched bottles of different sizes and quantities.