Brand Extension: A Strategy for Business Growth
What exactly is brand expansion?
A marketing strategy known as "brand extension" makes use of an existing brand to launch new products or enter a new category. To build brand equity, extensions of brands are used. A brand's value may increase as it expands its offerings and succeeds.
What is a strategy for expanding a brand?
A marketing strategy called "brand extension" involves using a well-known brand name on a new product in a related or unrelated category. Launching a product under a well-known company brand might make it possible for the launch to gain support from current, devoted customers.
What kinds of brand extensions are there?
Utilizing an existing brand to promote a product in a different category is, in essence, a brand extension. Product form, companion product, expertise, customer franchise, and brand image type are all examples of brand extension.
Answer:
Option C is correct. Explorer Group started business by manufacturing electronic appliances branded as Fortune appliances. The company later launched other brands such as Fortune apparels and Fortune optical. This is an example of brand extension.
Brand extension is a marketing strategy that involves leveraging an existing brand to introduce new products or expand into new categories. By utilizing the existing brand equity and recognition, companies can enter new markets successfully and build upon their established brand reputation.
One of the key advantages of brand extension is that it allows companies to capitalize on the trust and loyalty that customers already have for the original brand. This can help in reducing the risk associated with launching a completely new brand and product line.
There are different types of brand extensions, including product form extension (introducing variations of the existing product), companion product extension (offering products that complement the core product), expertise extension (leveraging the company's skills and knowledge in a new category), customer franchise extension (targeting the same customer base with a new product), and brand image extension (expanding into a related or unrelated category while maintaining the original brand image).
Overall, brand extension is a valuable strategy for business growth and can contribute to the long-term success of a company by leveraging its existing brand equity and customer base.