Branding is the name given to the process of giving meaning to certain organizations, companies, products or services by creating and shaping a brand in consumers’ minds. The objective of Branding is to attract and retain customers and other stakeholders by delivering a product or service that is always in line with the Brand Promise.
What is Brand Extension?
Brand Extension is a strategy by which a company creates a new product or service category under its existing renowned brand. This strategy allows the company to launch the new product to the market with pre-established brand awareness. Although the new product might be unfamiliar to consumers at first, they typically are aware of the brand that created the product, which can make it more likely to achieve market success.
It also allows an organization to launch new products easily, obtain higher profits, reduce costs necessary to launch a new business and meet customers’ needs and wants. A proper Brand Extension strategy can help extend the potential of your organization by making the best of new audiences, products and niches.
Why is Brand Extension Important?
The advent of increasingly competitive markets has made it impossible for companies to stay ahead if they don’t present something new to their target audience. Businesses consider various Brand Extension strategies to boost their market share, become more innovative, and create new product categories. It has become a crucial step to help boost business and engage new leads.
The Brand Extension process brings with it several benefits to businesses. Corporations attain an increased Brand Image, reduce funds needed for the development of a new brand, utilise promotional costs efficiently, and increase revenue.
Advantages of Brand Extension
Brand Extension can help upscale businesses in various ways. Brands need to come up with multiple strategies to stay ahead of the competition as the number of competitors is constantly increasing.
Companies can gain revenue by creating new products, providing better customer experiences and presenting new innovations or services. Brand extension is not a simple task and can prove to be significantly more difficult when a brand strays too far from the original product domain.
Brands take advantage of Brand Extension because it can:
- Help to seamlessly launch products in new categories.
- Enable brands to match their customers’ needs and wants.
- Help companies increase their revenue.
- Reduce the expenditure involved when launching and developing a new company.
- Encourage customers to try a new product from an existing and trusted brand.
- Reduce the customers’ risk because of the extension of the Brand Promise and Quality.
- Help brands efficiently use promotional budgets.
- Improve the holistic brand image.
- Provide a variety of products to the customers.
- Empower brands to attract more leads.
- Help revive a flagging brand or company.
It is important to remember your customers’ needs and expectations from your brand before engaging in Brand Extension. There are a few ways in which a company can approach Brand Extensions:
- Line Extension:
This is the simplest form of Brand Extension. This entails the introduction of an existing product in a new way. A new type of an existing product can be added to the lineup. Alternatively, one can introduce the same exact product in a different style, shape, colour, or size.
- Product Extension:
The launch of new products is a primary example of a Brand Extension. Your product should ideally be related to your existing portfolio of products or brand identity. Interics Designs can help with new product launch in India.
- Expertise Extension:
An Expertise Extension works with the existing authority of your brand. Brands tend to build on their existing credibility to launch new products in areas related to those they have credibility in and authority over.
- Market Extension:
A Market Extension is said to occur when a company starts to explore a new niche or sector. For example, a company with a strong position in the shampoo and haircare industry can extend their brand to introduce new products in the pet shampoo range.
- Geographic Extension:
Companies that are confident in the potential of their product or service can decide to extend into a new location. Geographical Extensions can be tough, as they imply building new audiences from scratch. Companies need to be aware of the viability of their offerings in a new market.
How can Interics INBrands help with your Brand Extension?
Though brand extensions may seem straightforward or simple on the surface, they can be very complicated to implement. While research suggests that extensions are up to 5 times more successful than brand-new product launches, you need to make sure that you have the right strategy in place to support the growth of your business.
In-Brands is a division of Interics Designs, the branding agency in India with over 34 years’ track record as a design agency, brand launch agency, and packaging design company India. Interics can help you come up with product launch ideas in India. Interics In-Brands has an impressive portfolio of clients for brand positioning strategy, startup branding, corporate identity program in India, product launch strategy, creative packaging design, spatial branding, product packaging design in India effective Integrated Branding and much more.
Interics IN-BRANDS specialises in anticipating changing business, market and customer needs for developing Future-ready Brands that set new benchmarks and generate a high resonance with audiences; while ensuring integrity and scalability across diverse platforms.
As a reputed brand consultancy and advertising agency in India, IN-BRANDS has a strong team of strategists who, with extensive research to derive market, competition and customer insights, develop a comprehensive strategy that would help unleash the Brand’s true potential.
As an extension of Brand Strategy, we provide Brand Architecture, to support futuristic growth; and craft the Brand Image with a compelling Story expressed through a robust Design Language for Brand unity across touchpoints. Finally, with proven interdisciplinary skills and experience of Brand roll-out, we enable a seamlessly executed brand launch along with synergistic brand communication across platforms and geographies – all maintaining brand integrity with compelling design.
For any company, growing the business and building brand equity are always top priorities. Brand extension can be a great way to tap into the potential of existing brands – by exploring new products, audiences and niches. But a brand extension strategy can be complicated. It requires serious planning, research and focus to be successful. An experienced brand partner like Interics IN-Brands can help with brand-focused consultancy that puts you on track for bigger profits, larger customer base, and a stronger market presence.