What is an example of brand stretching?
Brand stretch: a launch of a new product into a completely different and unrelated category e.g. Galaxy Creamy Hot Chocolate with Marshmallows or Robinsons Classic Fruits Sweets.
What is a brand stretch strategy?
What is a Brand Stretch? Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed proposition uses the same brand name in a different product category.
Does a brand stretch?
Brand stretch should not be seen as a short cut to growth, but should be treated cautiously, and with brand equity and customer sentiment front of mind. An interesting example of brand stretch to conclude with is eHarmony’s foray into recruitment.
Why is brand stretching important?
Brand extensions can also benefit the parent brand by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent brand’s relevance in its existing category. Extensions can also help to establish a brand’s position in new categories.
What is brand elasticity?
Brand elasticity refers to the number of products and services that can reasonably be covered by one brand – and the degree with which customers will consider a brand competing in new areas. The more elastic the brand, the more likely it can be to extend into new categories.
What are the benefits of brand extensions?
Advantages of Brand Extension
- It increases brand image.
- The risk perceived by the customers reduces.
- The likelihood of gaining distribution and trial increases.
- The efficiency of promotional expenditure increases.
- Cost of developing new brand is saved.
- Consumers can now seek for a variety.
Is Diet Coke a brand extension or line extension?
Coca-Cola line extended its brand by introducing Diet Coke. In 2010, Diet Coke became the second-most popular soft drink in the U.S.— overtaking Pepsi. That’s an example of a very successful line extension.
Is Coca-Cola Zero a brand extension?
This brand is best known for its original coke taste, but using brand extension, Coca-Cola has launched a whole new line of various coke products, such as Coke Zero and Cherry Coke flavor. When exploring brand extension, this can also mean completely unrelated product lines compared to the original product.
Why did Colgate fail in its attempt to stretch the brand?
Although Colgate did well by extending its brand and creating different oral care products, it failed to enter the food space. This brand extension was a failure mainly because selling frozen food was in sharp contrast with Colgate’s brand identity.
How brand extension is helpful for business?
Successful brand extensions allow companies to diversify their offerings and increase market share. They can give the company a competitive advantage over its rivals that don’t offer similar products. The existing brand serves as an effective and inexpensive marketing tool for the new product.
What brands are elastic?
There are many examples of highly elastic brands, such as Virgin and GE, that cover a variety of different products and industries, and these examples usually focus on a more abstract, emotional connection to customers.
How do you calculate brand elasticity?
The way to calculate price elasticity is to divide the change in demand (or supply) by the change in price. This will tell you which bucket your product falls into. A value of one means that your product is unit elastic and changes in your price reflect an equal change in supply or demand.
Why is brand extension a popular marketing strategy?
Why Is Brand Extension a Popular Marketing Strategy? According to Nielsen, brand extension (or brand stretching) has a likelihood of success five times that of new product launches. Extensions also leverage equity, increase efficiency, and enjoy faster consumer adoption.
How does Coca-Cola use brand extensions?
(A good example of this would be Coca Cola introducing a soda on the market with a different flavor, CHERRY COKE, or with less calories, ZERO). A brand extension falls outside of the original product line, using the same trademark.
Is Coke Zero a brand extension?
What extension strategies did Coca-Cola use?
The most well-known example of a line extension was Coca-Cola’s release of Diet Coke in 1982. It was used to target the growing weight- and calorie-conscious market. Diet Coke still exists today.
How does Apple use brand extension?
Apple (AAPL) is an example of a company that has a history of effectively using a brand extension strategy to propel growth. Starting with its popular Mac computers, the company has leveraged its brand to sell products in new categories, as can be seen with the iPod, the iPad, and the iPhone.