What is a brand extension? Five examples of how to use it

As consumers, we are exposed to and make use of brand extensions all day without even realizing it. It doesn't matter if we're sipping a new Pepsi-owned product while watching TV, browsing the aisle of frozen foods at the supermarket and online searching for a new moisturizer - most likely the product fits under a parent brand and is an extension of what they originally provided.

Why do companies have brand extensions? If you think you know the answer then you're correct! While some companies thrive off being able to master a single product but the main reason why brands have extensions to their brand is because they are very profitable, if they are it's successful.

 What is a brand extension?

Let's get the definition of "brand extension" clear first. It appears to be an elaborate corporate marketing phrase, but in reality the definition is pretty simple.

An branding extension is the time when a well-established business or organization begins selling a new product or a product in a new category using its brand name.

 The difference between brand extension and line extension

Instead of delving in the finer details of every way you can create an extension to your brand product (there are plenty) The two main ones that everyone in the business should be acquainted with is a brand and an extension of a line. While they are both forms of extension for your product There are some fundamental differences.

Brand line extensions are where a brand releases an item with a twist - ever heard of Coke Zero Sugar or Diet Coke with Lime? It's the same product in a new line and it's got an enticing flavor to draw fans of Coca-Cola back to taste it. Generally, line extensions are safer since they are in the same category of product. Sometimes, a brand line extension can also be referred to as vertical extensions because they could also be applied to products that have tiered choices. TVs are a great example of this as they can be purchased as a TV with a different dimension or even with additional features in a nutshell, you can choose more affordable options or a fancier version within the same product.

The flipside is that an extension of a brand is an entirely new product in an entirely new line of products such as, Dyson Supersonic(tm) hair dryer. Dyson is a great illustration. Once only known for its vacuum products, the company utilized its technological know-how to broaden its product line to the cosmetics industry by releasing an innovative hair dryer, as well as other hair styling tools. It paid off massively. There are segments of the population where more people now know about Dyson's hair dryer than their latest vacuum cleaner. It's also known as a horizontal extension of a brand - where a parent brand produces a brand new product under it.

 Real-life brand extension examples

As we mentioned earlier, brand extensions are prevalent everywhere in the present. We know we've thrown around some examples before Here are five other brand extensions from the real world to reference to help you brainstorm:

1.   Topo Chico Hard Seltzers  

Topo Chico is a well-renowned mineral water maker from Mexico and now is part of Coca-Cola. It is recognizable by its bottle with a distinctive taste and logo. Its latest brand extension can be described as Topo Chico Hard Seltzer - sparkling water that has been spiked. The company entered a new category of products by offering alcohol-based drinks and has seen major success due to the brand's established authority in the field of beverages. It's paid off: its new product was the third-fastest hard seltzer brand selling nationwide last year.

1.   Apple Watches  

Apple - we all know it and most likely use or employed some of its services in the past. Since the company originated with a line of computers, its Apple Watch product is a clear example of a brand extension. It can be seen as an extension of the iPhone Although at first, it was not a huge success but after a smart marketing strategy and a focus on health and fitness, Apple consumers jumped at the chance to purchase the new product. Additionally it is the case that the Apple Watch has a brand line extension of its own because Apple continually releases updated ones featuring different price levels.

1.   Fenty Skin by Rihanna  

After Fenty Beauty generated $550 million in revenue during the initial year. it became one of the top brand owned by celebrities. Given the reputable authority and loyal audience from Fenty Beauty, Fenty Skin was launched. Rihanna introduced her skin care range strategically; Fenty Skin is marketed as gender-neutral and inclusive skincare - unlike many existing skincare brands. This is an excellent instance of a brand expansion that has enthused a larger public to join a larger brand.

1.   Amazon as well as Whole Foods  

When Amazon bought Whole Foods, everyone did take a second look. But, this unlikely combination changed the way consumers shop for and purchase grocery items. This is a singular model of brand extension because, it was the case that when Amazon acquired Whole Foods, the grocery chain kept its own branding. However, using Amazon's powerful loyalty program that offers discount on food items and delivery services, the company effectively extended the brand into a completely new segment.

1.   Star Wars Franchise  

The entertainment industry is known for brand extensions! Spin-offs, sequels, and TV adaptations are all ways that entertainment companies develop brand extensions. Star Wars is a great example with several different series, franchises, video games, merchandise, and books. There's an even theme park located at Disneyland. The Star Wars franchise has created extremely loyal customers and Disney has recognized this and did not just create new fan bases around it but profited well through its numerous product enhancements.

 What is the best way to create an extension of your brand name as an online business owner

It's not difficult to envision brand extensions in relation to physical products, for online entrepreneurs, the possibilities of the expansion of your brand are endless.

Craig Beck is an outstanding instance of an online-based knowledge entrepreneur who has used his brand to create several extension of his brand. Utilizing , Craig has launched a range of digital services - not just does he offer an extremely well-known and popular sobriety coaching but he's extended his brand to include personal coaching and investment coaching! Craig has managed to extend his brand of coaching into various categories which has allowed him to grow his audience as well as his revenue.

Making a brand extension an online entrepreneur should come from three fundamental parts:

1. research: We cannot stress this enough, research! We specifically refer to the research of your audience. The research of your most loyal customers is critical for brand extensions. Without their loyal loyalty, you will most likely find that your product will fail. Send a survey out in your area, organize an online focus group or have a town-hall Instagram live so you can get your audience's opinion.
2. Create with your parents brand in mindWhen making an extension for your company, be sure you don't distance the product from the parent brand. Whether you want to have the same name for your brand as well as logo, theme, or even a line, you'll want your brand extension to be recognized.
3. The beta test Tests for beta are typical of digital products as well as software. A beta test is where you release your new software or upgrade to a limited sample of customers first, to see their reactions, work out any issues, and more. It's a great way to test the waters and get feedback prior to deciding whether you want to waste time and money on the development of a complete brand extension that could be not successful.

The best part about the process of testing brand extensions for digital products is that you'll hardly have to invest money. You could offer your program or site membership for free without having the expense of manufacturing a physical product. This is a win-win.

 A word of caution in relation to brand extensions

Let's be honest - extension of brands can be disastrous if done poorly. Do you remember the scandal of IHOb/IHOP in 2018? IHOP extended its brand by offering new burgers and also, as a publicity move, changing their logo to IHOb. Though it received a lot of attention, many thought that it was more an April Fools Joke instead of a brand extension. When competitors and fans mocked the company on the internet, there was no any official recognition with its brand new and improved product (burgers) which resulted in embarrassment for restaurant chain.

Amazon's Fire Phone failure is another example of a poorly implemented extension of the brand. After seeing success with the Kindle series, Amazon decided to launch its own phone. However, the cult brand's phone wasn't compatible with many apps, and expensive, and, in the end people didn't like the device. Amazon didn't conduct extensive research on their audience to figure out if their consumers are likely to purchase a phone.

What lesson can we learn from these failures? Research and utilize your audience as the key resource for new ideas and online product launches. Be careful of venturing into new areas in which you have less authority as it can cost you.

 Growing your brand and products

If you're an entrepreneur on the internet seeking to expand your brand in the right way, completing the right research and vetting will enable you to develop extension of your brand that can increase your current audience and invite new members into your circle.