“Brand extension or Brand Stretching is using the leverage of a well known brand name in one category to launch a new product in a different category.”
Under “Brand Stretching” definition, we find out an operating marketing plan able to ensure a constantly incoming cash flow diversifying its operational business getting into different markets under only one company name as long as the new branch product would be successful and well accepted within the new targeted customer segment . For instance, some renowned companies, just for let us make a primary approaching to what I’m talking about, can be: Harley Davidson, Virgin Group, General Electric, Nestle, Giorgio Armani, Gucci and many others, whose were originally recognized selling a quality product (must remind in this point that a product can be a service as well) delivered with a special distinctive: a valuable flag what customers are according with and whose can link at every time the product with the brand/company. Therefore, very well accepted.
Once the company had grown up feeling grateful, enjoying a well-deserved reputation, being self-sustainable and getting enough incoming cash flow to deal with daily costs, then it is the time to develop other branches, focusing from this point, their attention beyond, willing to get a place into another sort of market, which can consists just in an upgrade of the first product, or consists in to start another completely different market, and consecutively thus.
Moreover, there are different kind of stretching manners depen-ding on the targeted segment and the characteristics of this part of population we are focused in, and also the way we want to successfully be rewarded (economically, social recognisement, quality product awards and acknowledgement , whatever…), what drives us to suppose that the new categorized product had been successfully accepted within the expected part. So, as I have explained and according what concern to Brand Stretching Research Plans, we can mention 8 main planning type methods. Here we go:
1. Similar product in a different form from the original parent product. This is where a company changes the form of the product from the original parent product. An example is (frozen) Snickers Ice Cream Bars. The brand extension is a similar product, but in a different form
2. Distinctive flavor/ingredient/component in the new item. When a brand “owns” a flavor, ingredient or component, there may be other categories where consumers want that property. An example is Peanut butter, is a characteristic ingredient in Reese’s Peanut Butter Cups candy. Chocolate is a characteristic ingredient of Hershey, as a logical extension that capitalizes on this association
3. Benefit/attribute/feature owned. Many brands “own” a benefit, attribute or feature that can be extended. An example is ArmorAll defined by automotive surface protection – which can go beyond vinyl dressing. Arm & Hammer “owns” a benefit of deodorizing. Their baking soda product has claimed that it removes odors. As a result, they extended the brand into other products such as Arm & Hammer underarm deodorant and cat litter deodorize.
4. Expertise. Over time, certain brands may gain a reputation for having an expertise in a given area. Leverage can be achieved when extending into areas where this special expertise is deemed important. An example is Sara Lee known for baked desserts, so why not other baked goods like bread as she did?
5. Companion products. Some brand extensions are a “natural” companion to the products the company already makes. An example is Aunt Jemima (the pancake mix brand) launched pancake syrup, as a companion to compete with Log Cabin syrup.
6. Vertical extensions. Some brand extensions are vertical extensions of what they currently offer. A brand can use their “ingredient/component” heritage to launch products in a more (or sometimes less) finished form. An example is Nestlé’s Toll House chocolate refrigerated cookies. Most Toll House chocolate chips are used in cookies, so why not make a brand of Toll House chocolate chip cookies?
7. Same customer base. Many brand extensions represent a marketer’s effort to sell something else to its customer base. An example is VISA. The company launched travelers checks directed to its credit card customers.
8. Designer image/status. Certain brands convey status and hence create an image for the user. Examples are designer clothing labels whose have been extended to furniture, jewelry, perfume, cosmetics and a host of other items.
Lastly, after the list above, I want to refer to Brad VanAuken (The Blake Project’s Chief Brand Strategist) and his definition about the topic we have seen. He has observed that “Any brand extension into a new product category must reinforce one of those primary associations without creating new negative, conflicting or confusing associations for the brand. If this rule is followed, the brand extension will actually reinforce what the brand stands for.”
There are much more important aspects to count on, in order to define a successful Brand Stretching Plan as naming the new branch, customers loyalty, logistics, customers demand, propaganda, manufacturing costs and many others. Nonetheless, I am not going to expose those aspects on the present post because we could extend too much but I will be back soon in future posts to some of those matters.
In the link below you’ re going to find out more information about “Brand stretching” or “Brand Extension” how its actually mentioned on it, and why companies must or mustn’t invest time and money developing those plans.
Have fun!
onlypaellas.com 