By introducing new products under an existing name, brand extension can help businesses reach a larger consumer base. This marketing approach is a way to improve a parent brand's overall image and build upon it. You can manage your brand and choose the best brand extension for your business by being aware of the various kinds available. Hence, you must hire the right brand extension strategy and develop the overall features and support.

About Brand extension:

 The practice of a business using an existing brand name on a new product in a similar or unrelated category is known as brand extension.

Current, devoted customers may support the launch if an item is released under a well-known firm brand.

If you want to know about the Brand extension advantages and disadvantages, you need to follow the below words and let to improve the overall business to the top of the table.

Types of Brand Extension Strategies

Line Extension:

Introducing additional goods or services within the same market niche or product category as the current brand is known as a line extension. A soft drink business, for instance, might launch additional flavors or packaging alternatives with the same brand name. In a similar vein, a personal care product firm might launch fresh scents or formulas under the same name. Since the business may make use of its current distribution channels, brand recognition, this is usually the simpler and less dangerous kind of brand extension.

Category Extension:

If you come to introducing a new product or service in a different market sector or product category which is known as category expansion. Similarly, a company that offers home appliances may create a furniture line under the same brand name. Since it entails extending the brand into new and possibly uncharted territory, this kind of brand extension is riskier and more difficult.

Franchise Extension:

A franchise extension enables other companies to run their operations using the original company's name and business plan. This tactic is frequently employed in the food and beverage sector, where businesses like and Subway permit franchisees to operate using their systems and brand name.

Brand Licensing:

 It allows other businesses to manufacture and market goods under the parent company's name by using its intellectual property and brand name is known as brand licensing. when it come to  fashion sector, businesses like Adidas frequently employ this tactic, licensing their trademarks and brand names to independent producers who create and market apparel and accessories under their own brands.

Co-Branding:

Co-branding supprot the over all businesses in increasing their customer base eye-catching goods.   Even the car manufacturer may join with a luxury watch brand to introduce a limited edition car along with its custom-designed timepiece.

How to choose a successful brand extension?

A few components of a successful brand expansion strategy turn it from a hazardous endeavor into a more certain hit. A powerful brand image you must have a strong enough brand image for people to believe in the new service or product you are selling. They’ll be more likely to prefer the new product over non-branded competitors because they understand the brand style. Then you have made sure the marketing plan emphasizes the aspects of your brand that clients already find appealing and trustworthy.

A great brand reputation

What reason does a consumer have to believe in a new, possibly very different product from the same brand if you don't have a well-known brand name? For a brand extension to be effective, the current brand equity is essential.A subpar product could quickly weaken or harm your brand's reputation, so be sure that you're enhancing it in any method you decide to introduce something new.

Data to drive your strategy:

It will take time to develop a strong brand extension. To plan such a big project, you'll need the correct insights. Following the launch of the brand extension, you should also assess the changes in brand perceptions.Knowing how things are evolving over time when you increase or decrease the resources you devote to the new brand activities is made easier if you receive regular, periodic feedback.

Advantages of brand extension

Develop the overall audience:

Companies can frequently reach new customers and demographics by extending their brands.

Increase the profit:

Greater possibilities and potential for new markets may also result in higher sales, which would raise equity and profit margins overall.

Inexpensive marketing:

Because brand expansion depends in part on current followers, businesses can save money that would otherwise be spent on marketing and promotion.

Trust from customers:

Customers are willing to test a new product from a company with proven credibility, but it typically needs some amount of time for new products to gain their trust.

Promotes the existing products:

A new product launch could help promote your brand, which acts as advertising for your current line of goods.

Disadvantages of brand extension

Great change in the parent brand's image:

 If the new product becomes less successful than your original offerings, it could damage your brand's reputation, but it can also help make sure the new product aligns with your goals and promises.

Possibility of over-saturation:

Think about competing in a market that is relevant to your existing industry because being involved in too many industries could dilute your brand as consumers grow weary of seeing it.

Least marketing budgets:

Diversify your marketing strategies to spark interest in your goods because some businesses could rely too heavily on brand awareness to draw clients while cutting costs.

 What are the ideas for implementing a brand extension?

Consider the needs:

 To help make sure your new product is something your customers actually need, consider their desires.

Remain loyal to your brand message:

When selecting your expansion opportunities, make sure that they relate to your overall brand message and to the other products you sell.

Test before you launch:

 Before committing to a new line of products, consider testing with your current customers to get feedback from them.

 Conclusion:

This tactic, sometimes referred to as brand stretching, aligns the values of the parent brand or current business to appeal to a similar clientele while simultaneously creating new leads by breaking into a new market.