eight Varieties Of Model Extension
A study with more than 300 brand extensions found that there are eight types, each with its own lever.
- Similar product in a different form than the original parent product, Here a company changes the shape of the product compared to the original parent product.
- Striking aroma / ingredient / ingredient in the new article. If a brand “owns” a taste, ingredient, or component, there may be other categories in which consumers want that property.
- Benefit / attribute / characteristic owned. Many brands “possess” an advantage, an attribute or a function that can be expanded.
- Expertise. Over time, certain brands can gain a reputation for having expertise in a particular area. Leverage can be achieved by expanding to areas where this specific expertise is considered important.
- Companion products. Some brand extensions are a "natural" companion to the products that the company already manufactures.
- Vertical extensions. Some brand extensions are vertical extensions of the current offer. A brand can use its legacy as an "ingredient / component" to bring products to the market in a more (or sometimes less) finished form.
- Same customer base. Many brand extensions represent a marketer’s effort to sell something else to their customer base.
- Designer image / status. Certain brands convey status and create an image for the user.
For example, to enter new categories, Arm & Hammer used a functional advantage: odor control. This strategy allowed the brand to gradually expand to everything from cat litter to deodorant. While Motorola was successful in expanding the brand, it focused on categories in which consumers gave permission to expand. Motorola has gained this understanding through research. Cordless phones and baby monitors are two areas in which consumers value Motorola's “business-critical communication”.
Sometimes a brand expansion is just further proof of the brand promise and reinforces what the brand stands for. At other times, it makes the brand more relevant to new customer segments. Sometimes it can expand the meaning of the brand beyond a certain product category, giving it a longer lifespan and greater flexibility for future growth.
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