{"id":31412,"date":"2024-07-03T12:15:10","date_gmt":"2024-07-03T12:15:10","guid":{"rendered":"https:\/\/www.engagebay.com\/blog\/?p=31412"},"modified":"2026-02-13T08:38:04","modified_gmt":"2026-02-13T08:38:04","slug":"brand-extension-examples","status":"publish","type":"post","link":"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/","title":{"rendered":"13 Of The Most Clever (and Dumb) Brand Extension Examples"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Dove is a well-known hair and skincare brand that is <\/span><span style=\"font-weight: 400;\">popular for manufacturing women&#8217;s skincare items like soap, body washes, bars, etc. While initially catered toward women, it introduced a range of products for men under the name \u2018Dove Men+Care\u2019 in 2010.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the company was already involved in skincare products, launching a men\u2019s product category transformed Dove into a multi-billion dollar giant.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a classic brand extension example \u2013 businesses leverage their <a href=\"https:\/\/www.engagebay.com\/blog\/increasing-brand-awareness\/\" target=\"_blank\" rel=\"noopener\">brand awareness<\/a> and authority to expand their clientele and open new sales channels.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this blog post, <\/span><span style=\"font-weight: 400;\">you will learn more about brand extension and see a few clever examples to learn how you can do it, too. We&#8217;ve also shared some poor examples of brand extension and why those campaigns didn&#8217;t work.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#What_Is_Brand_Extension\" >What Is Brand Extension?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Types_of_Brand_Extensions\" >Types of Brand Extensions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Vertical_vs_Horizontal_Brand_Extension\" >Vertical vs Horizontal Brand Extension<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Advantages_of_Brand_Extension_For_Your_Business\" >Advantages of Brand Extension For Your Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Disadvantages_of_Brand_Extension_for_Your_Business\" >Disadvantages of Brand Extension for Your Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#What_Makes_a_Successful_Brand_Extension\" >What Makes a Successful Brand Extension?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Amazing_Brand_Extension_Examples_To_Learn_From\" >Amazing Brand Extension Examples To Learn From<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#5_Brand_Extension_Disasters_and_Why_They_Failed\" >5 Brand Extension Disasters and Why They Failed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#The_Connection_Between_Brand_Equity_and_Brand_Extension\" >The Connection Between Brand Equity and Brand Extension<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.engagebay.com\/blog\/brand-extension-examples\/#Wrap_Up\" >Wrap Up<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_Is_Brand_Extension\"><\/span><span style=\"color: #339966;\"><b>What Is Brand Extension?<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Brand extension is a marketing strategy wherein a company creates a new product category under its brand name.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, brand extensions are used by well-established organizations to launch a new product or product category for their customer base.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the newly launched product category is related to the company\u2019s parent category, it helps brands earn greater profits, reduce costs involved in launching a new business, and meet customers\u2019 needs.&nbsp;<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Brand_Extensions\"><\/span><span style=\"color: #339966;\"><b>Types of Brand Extensions<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let us take a look at the different types of brand extension strategies.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>1. Product line extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31415\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM.png\" alt=\"Line brand extension example from Kwality Walls\" width=\"418\" height=\"315\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM.png 1096w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM-300x226.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM-1024x772.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM-768x579.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-7.58.51-AM-595xh.png 595w\" sizes=\"(max-width: 418px) 100vw, 418px\" \/><\/a><span style=\"font-weight: 400;\">A line extension is a form of brand extension when a parent company or brand launches a new product line that is similar to or adjacent to the existing category of products.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, companies don\u2019t have to create a new product line and can expand their customer base by adding to their already existing product categories.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An example of line extension is when an ice cream brand introduces new flavors to its existing lineup.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other examples include adding new scents, colors, and sizes to a product line.<\/span><\/p>\n<h4><span style=\"color: #666699;\">When does a product line extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When there is strong customer demand for new product variations.<\/li>\n<li>When the customers have strong brand loyalty.&nbsp;<\/li>\n<li>When the new product is closely related to your existing products.<\/li>\n<\/ul>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h3><span style=\"color: #993300;\"><b>2. Complementary product extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31416\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM.png\" alt=\"Complementary Product Extension example from Aquafil and Speedo\" width=\"558\" height=\"373\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM.png 1226w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM-300x201.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM-1024x685.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM-768x514.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.00.03-AM-595xh.png 595w\" sizes=\"(max-width: 558px) 100vw, 558px\" \/><\/a><span style=\"font-weight: 400;\">In complementary product extensions, brands add products that complement their existing range of products. Effective brand positioning can make sure that these complementary products fit the brand&#8217;s image and delight the customers. <\/span><span style=\"font-weight: 400;\">For instance, sports brands sell cricket bats and balls together as complementary goods.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Or, activewear brands selling swimsuits with head caps, which boosts sales.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An example of a complementary product extension is Speedo, a well-known swimwear brand. Speedo sells swimsuits as well as complementary wear, including swimming goggles, swim caps, and bathing suits.&nbsp;<\/span><\/p>\n<h4><span style=\"color: #666699;\">When does a complementary product extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the new product naturally pairs with existing products.<\/li>\n<li>When customers often buy complementary products together.<\/li>\n<li>When the new product fits the brand&#8217;s image and customer expectations.<\/li>\n<\/ul>\n<h3><span style=\"color: #993300;\"><b>3. Customer base extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31417\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM.png\" alt=\"Customer Base Extension example from Johnson's\" width=\"526\" height=\"299\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM.png 1244w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM-300x171.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM-1024x583.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM-768x437.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.01.12-AM-595xh.png 595w\" sizes=\"(max-width: 526px) 100vw, 526px\" \/><\/a><span style=\"font-weight: 400;\">Although brands mainly extend their product line by adding new goods to the same category, some do so by targeting a specific demographic.&nbsp;<\/span><span style=\"font-weight: 400;\">This brand strategy is known as customer base extension.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, Johnson and Johnson, a company that sells pharmaceutical and consumer packaged products, extended its brand to sell goods that specifically cater to infants. Known as Johnson&#8217;s Baby, the brand sells baby wipes, baby powder, baby shampoo, hair oil, and so on.<\/span><\/p>\n<h4><span style=\"color: #666699;\">When does a customer base extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the brand can identify new needs within its existing customer base.<\/li>\n<li>When the new products fit well with what the brand already sells.<\/li>\n<li>When the brand can use its good reputation to promote the new products.<\/li>\n<\/ul>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/brand-development\/\">Read also: Understanding the 4 Key Steps to Brand Development: A Brief Guide<\/a><\/p>\n<h3><span style=\"color: #993300;\"><b>4. Company authority extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31418\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM.png\" alt=\"Company Authority Extension example from The Tata Group\" width=\"569\" height=\"372\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM.png 1114w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM-300x196.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM-1024x669.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM-768x502.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.03.28-AM-595xh.png 595w\" sizes=\"(max-width: 569px) 100vw, 569px\" \/><\/a><span style=\"font-weight: 400;\">Brands that use company authority extensions usually have high authority in their field or industry. <\/span><span style=\"font-weight: 400;\">As a result, they are able to create and invest in diverse products and services.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Tata Group is a good example of an organization that applies for company authority extension. <\/span><span style=\"font-weight: 400;\">The company has invested in multiple sectors, including consultancy, automobiles, aviation, jewelry, apparel, hospitality, and so on.<\/span><\/p>\n<h4><span style=\"color: #666699;\">When does a company authority extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the brand has high credibility in its industry.<\/li>\n<li>When the brand has resources to invest in multiple sectors.<\/li>\n<li>When the brand&#8217;s reputation draws customers to new products and services.<\/li>\n<\/ul>\n<h3><span style=\"color: #993300;\"><b>5. Brand lifestyle extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-scaled.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61330\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-scaled.jpg\" alt=\"Tesla tequila as an example of brand lifestyle extension \" width=\"525\" height=\"295\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-scaled.jpg 2560w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-300x169.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-1024x576.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-768x432.jpg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-1536x864.jpg 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/tesla-tequila-final-2048x1152.jpg 2048w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/a><span style=\"font-weight: 400;\">With a brand lifestyle extension, companies aim to create a culture or community around their brand.&nbsp;<\/span><span style=\"font-weight: 400;\">This marketing strategy lets you use your brand community and offer them new products even if they are not related to the main product(s) of the original brand.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, organizations use celebrity endorsements or <a href=\"https:\/\/www.engagebay.com\/blog\/benefits-of-influencer-marketing\/\" target=\"_blank\" rel=\"noopener\">influencer marketing<\/a> to promote their products.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An example of a brand lifestyle extension is that of Tesla, an American automotive and clean energy company.&nbsp;<\/span><span style=\"font-weight: 400;\">It introduced a tequila line, and the company sold out its tequila within a few hours.<\/span><\/p>\n<h4><span style=\"color: #666699;\">When does a brand lifestyle extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the brand has a strong and engaged community.<\/li>\n<li>When the new products evoke curiosity and excitement among the brand&#8217;s followers.<\/li>\n<li>When marketing strategies like celebrity endorsements or influencer marketing are effectively used.<\/li>\n<\/ul>\n<h3><span style=\"color: #993300;\">&nbsp;6. Derivative extensions<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/coke-cherry-vanilla.png\"><img decoding=\"async\" class=\"aligncenter wp-image-61249\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/coke-cherry-vanilla.png\" alt=\"coke cherry vanilla example of derivative brand extension \" width=\"570\" height=\"380\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/coke-cherry-vanilla.png 600w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/coke-cherry-vanilla-300x200.png 300w\" sizes=\"(max-width: 570px) 100vw, 570px\" \/><\/a>In a derivative brand extension, a brand creates new products that are variations or enhancements (&#8216;derivatives&#8217;) of its existing products. This approach allows the brand to expand its offerings while maintaining its core identity.<\/p>\n<p>For example, Coca-Cola introduced new flavors such as Cherry Coke and Vanilla Coke (and even mixed them both for the Cherry Vanilla flavor).&nbsp;<\/p>\n<h4><span style=\"color: #666699;\">When does a derivative extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the new product variations excite and attract existing customers.<\/li>\n<li>When the brand can innovate while staying true to its core identity.<\/li>\n<li>When the new products offer a delightful twist on beloved favorites.<\/li>\n<\/ul>\n<h3><span style=\"color: #993300;\">7. Co-branding<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/nike.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61250\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/nike.jpg\" alt=\"nike+ example of co-branding by nike and apple\" width=\"560\" height=\"337\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/nike.jpg 660w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/nike-300x180.jpg 300w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/a>Co-branding is a brand extension strategy where two or more brands collaborate to create a new product that has common features from each brand. This strategy cleverly uses the strengths and customer bases of both brands to create a unique offering.<\/p>\n<p>For example, Nike and Apple teamed up to create the Nike+ product line. Nike brought its sports gear know-how, and Apple added its tech skills to the mix. Together, they made products like Apple Watch Nike+ and Nike+ iPod Sport Kit that track and boost your athletic performance.&nbsp;<\/p>\n<h4><span style=\"color: #666699;\">When does a co-branding extension work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the collaboration generates buzz and excitement among customers.<\/li>\n<li>When the new product offers exciting features that make the customers eager to try it out.<\/li>\n<li>When the partnership introduces each brand to new customer bases.<\/li>\n<\/ul>\n<h3><span style=\"color: #993300;\">8. Licensing<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61251\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon.jpg\" alt=\"Disney toys example of brand extension licensing \" width=\"490\" height=\"368\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon.jpg 1280w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon-300x225.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon-1024x768.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/disney-toys_11zon-768x576.jpg 768w\" sizes=\"(max-width: 490px) 100vw, 490px\" \/><\/a>Licensing brand extension happens when a brand lets another company use its name, logo, or other brand elements on products that the original brand doesn&#8217;t usually make. This strategy helps the brand reach new markets and rake in extra cash without having to produce new products themselves.<\/p>\n<p>Take Disney, for example. They license their beloved characters to different companies to make merchandise like toys, clothing, and accessories. This way, Disney gets to spread its magic even further and cash in on its popular characters without having to deal with the manufacturing process.&nbsp;<\/p>\n<h4><span style=\"color: #666699;\">When does licensing work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the brand enters into a new market through partnerships.<\/li>\n<li>When there is a clear customer demand for specific products or merchandise.<\/li>\n<li>When brands want to profit from merchandise without taking up the hassle of manufacturing.&nbsp;<\/li>\n<\/ul>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/small-business-branding\/\">Read also: 14 Examples of Small Business Branding (Achieve Similar Results)<\/a><\/p>\n<h3><span style=\"color: #993300;\">9. Corporate branding<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Virgin-group-final.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61252\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Virgin-group-final.jpg\" alt=\"Corporate branding extension example Virgin Groups\" width=\"487\" height=\"433\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Virgin-group-final.jpg 500w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Virgin-group-final-300x267.jpg 300w\" sizes=\"(max-width: 487px) 100vw, 487px\" \/><\/a>Corporate branding extension is when a company uses its well-known corporate brand name to launch new products in different categories. This strategy leverages the company&#8217;s overall reputation to build trust and recognition for its new offerings.<\/p>\n<p>For example, Virgin Group uses corporate branding to extend their name across various industries, including airlines (Virgin Atlantic), music (Virgin Records), and over 60+ businesses and industries which even includes space travel!<\/p>\n<p>Fun fact: This is also an example of brand stretching, where a company uses its well-known brand name to launch new products in different and often unrelated categories.&nbsp;<\/p>\n<h4><span style=\"color: #666699;\">When does corporate branding work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When the brand has the capital to drive expansion and innovation.<\/li>\n<li>When the brand name instantly builds trust and interest in new products and services.<\/li>\n<li>When the brand&#8217;s reputation and reach open doors to new markets.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span style=\"color: #993300;\">10. Transfer of components<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61301\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final.jpg\" alt=\"Apple as transfer of components example \" width=\"535\" height=\"301\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final.jpg 1600w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final-300x169.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final-1024x576.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final-768x432.jpg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Apple-Mac-and-Ipad-final-1536x864.jpg 1536w\" sizes=\"(max-width: 535px) 100vw, 535px\" \/><\/a>Transfer of components brand extension is when a brand reuses &#8220;transfers&#8221; its successful features\/qualities from one product and uses them in another product. This helps win customer trust for new products, as they encounter something familiar.<\/p>\n<p>For example, Apple uses the same processor technology from its Mac computers in its iPad Pro tablets. Customers who trust the performance of Mac computers are more likely to trust the iPad Pro for similar high performance.<\/p>\n<h4><span style=\"color: #666699;\">When does a transfer of components work?&nbsp;<\/span><\/h4>\n<ul>\n<li>When familiar features make new products more trustworthy.<\/li>\n<li>When proven technology\/features promise to deliver the same high performance in new products.<\/li>\n<li>When consistent quality across products has strengthened the brand identity.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Vertical_vs_Horizontal_Brand_Extension\"><\/span><span style=\"color: #339966;\">Vertical vs Horizontal Brand Extension<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You can expand your brand in two main ways: vertical or horizontal brand extension. Let&#8217;s see what they are.<\/p>\n<h3><span style=\"color: #993300;\">Vertical brand extension<\/span><\/h3>\n<p>A vertical brand extension stays within the same product category but introduces options at different price and quality levels, which can either be higher-end or more affordable.<\/p>\n<p>For example, Starbucks offers a range of coffee products, from premium Reserve blends to more affordable, everyday Pike Place roasts.<\/p>\n<h3><span style=\"color: #993300;\">Horizontal brand extension<\/span><\/h3>\n<p>A horizontal brand extension, on the other hand, stretches your brand into new territories or product categories.<\/p>\n<p>Take Dyson, for example. They started out with vacuum cleaners, but they have also branched out into hair care, air purifiers, heaters, etc.<\/p>\n<h3><span style=\"color: #993300;\">Combining both extensions<\/span><\/h3>\n<p>Sometimes, brands can blend both strategies, making it tricky to categorize if their brand extension is vertical or horizontal.<\/p>\n<p>Samsung&#8217;s Galaxy smartphone series includes everything from high-end models with advanced features to more affordable options. The company has also expanded into tablets and wearables, showing both vertical and horizontal extensions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages_of_Brand_Extension_For_Your_Business\"><\/span><span style=\"color: #339966;\"><b>Advantages of Brand Extension For Your Business<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some reasons why you should consider brand extension as part of your marketing strategy.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>1. Helps capitalize existing brand assets<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In certain industries, barriers to entry are high.&nbsp;<\/span><span style=\"font-weight: 400;\">Factors such as high initial capital and regulations might make it difficult for someone to launch an enterprise in a field with such barriers.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This allows existing firms to attain growth and expand their clientele by capitalizing on existing <a href=\"https:\/\/pics.io\/brand-asset-management\" target=\"_blank\" rel=\"noopener\">brand assets<\/a>.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It includes offering unique products or services, targeting the right audience, building a competitive and efficient business model, and creating a business logo or tagline that resonates with your brand.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>2. Economies in promotion and advertising<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One of the biggest advantages of brand extension is that it helps businesses save costs. They need not launch a new brand if they want to introduce a new product line or extend an existing product category<\/span><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, they can expand their product line under the same brand name.&nbsp;<\/span><span style=\"font-weight: 400;\">As a result, companies save money on promotion and advertising and the capital they would have required to start a new brand.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/multichannel-retailing\/\">Read also: Multichannel Retailing: Everything You Need to Know<\/a><\/p>\n<h3><span style=\"color: #993300;\"><b>3. Provides instant recognition<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Typically, brand extension strategies are used by big and well-established organizations.&nbsp;<\/span><span style=\"font-weight: 400;\">Such brands enjoy a positive reputation and a significant market share.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, when they launch a new product category or extend an existing one, the new products will be received positively by the public due to the brand\u2019s reputation.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>4. Increases the probability of success<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In an increasingly competitive world, brands can only survive if they offer something unique to their audience.&nbsp;<\/span><span style=\"font-weight: 400;\">With more and more competitors entering the market, brands must find ways to ensure consumers keep buying their products.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, brand extension becomes inevitable.&nbsp;<\/span><span style=\"font-weight: 400;\">By launching new products or services, brands can guarantee sales without the need to invest in developing a new enterprise.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This increases their probability of success and helps them widen their customer base.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/types-of-branding\/\">Read also: 9 Types Of Branding And What They Really Mean<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disadvantages_of_Brand_Extension_for_Your_Business\"><\/span><span style=\"color: #339966;\">Disadvantages of Brand Extension for Your Business<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before you rush for brand extension, here are some downsides that you should be aware of.<\/p>\n<h3><span style=\"color: #993300;\">1. Loss of reliability<\/span><\/h3>\n<p>Brand extension can sometimes confuse your customers with new products or unrelated services. This can lead to a loss of trust in the brand. Moreover, if the new products and services don&#8217;t meet the expectations set by the original brand, it can damage the overall brand image.<\/p>\n<h3><span style=\"color: #993300;\">2. Bad products can hamper brand image<\/span><\/h3>\n<p>Introducing a subpar product under an established brand name can tarnish the brand\u2019s reputation. It\u2019s very important to maintain the quality and standards associated with your brand to avoid damaging your brand image.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/cross-sell\/\">Read also:Cross-Selling Guide For Beginners (With Examples &amp; Strategy)<\/a><\/p>\n<h3><span style=\"color: #993300;\">3. Can weaken brand identity<\/span>&nbsp;<\/h3>\n<p>When a brand stretches itself too thin by entering too many new markets, it risks diluting its brand identity. Brand dilution occurs when the brand\u2019s name becomes too generic and loses its unique appeal and recognition in the market.<\/p>\n<h3><span style=\"color: #993300;\">4. Can increase internal competition (and external competition too)<\/span><\/h3>\n<p>Brand extension can lead to an increase in internal competition, where the new products compete with the company\u2019s existing products. This internal competition can negatively impact the sales of the original products, reducing overall profitability. And don&#8217;t forget the external completion if your product is new to that field.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Makes_a_Successful_Brand_Extension\"><\/span><span style=\"color: #339966;\"><strong>What Makes a Successful Brand Extension?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A successful brand extension strategy involves three key elements, which, when worked on together, can make the process from a dicey hit-and-miss to a solid hit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is a brief overview.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>1. Building a compelling brand image&nbsp;<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your brand image is everything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you are building a <\/span><span style=\"font-weight: 400;\">brand extension strategy<\/span><span style=\"font-weight: 400;\">, it is important to ensure that you have built and continue to build a strong, credible <\/span><span style=\"font-weight: 400;\">brand image<\/span><span style=\"font-weight: 400;\"> that resonates with the audience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you introduce a new product into the market as an extension of your brand, customers will trust and buy your products based on your <\/span><span style=\"font-weight: 400;\">brand identity<\/span><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you have built a reliable brand image, a customer will most likely choose your new product over other non-branded ones. <\/span><span style=\"font-weight: 400;\">Brand image and identity are key to ensuring your new<\/span><span style=\"font-weight: 400;\"> brand extension strategy<\/span><span style=\"font-weight: 400;\"> hits the right audience, eventually making it successful.&nbsp;&nbsp;<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>2. A strong brand reputation<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, you have done all the hard work and built a good brand image. <\/span><span style=\"font-weight: 400;\">What is the guarantee that after the initial buzz fizzles out, your brand image stays on top?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brand reputation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brand reputation is the maintenance of the brand image that you worked hard to build. <\/span><span style=\"font-weight: 400;\">If you do not have a strong reputation, your brand will take a backseat even if you have quality products and services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of brand extension, when you are expanding into a new venture or market, it is your brand recognition that will precede the actual quality of the product with existing and <\/span><span style=\"font-weight: 400;\">new customers<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">established brand name <\/span><span style=\"font-weight: 400;\">will lay a strong foundation for the brand extension.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another point to add is that brand reputation is easy to break and hard to make. As you expand your business, ensure that you build your reputation as you move forward.&nbsp;<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>3. Strategy backed by data<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A brand extension is no easy feat. <\/span><span style=\"font-weight: 400;\">It requires colossal effort and resources.&nbsp;<\/span><span style=\"font-weight: 400;\">One way to ensure your brand extension strategy doesn&#8217;t crumble at the first hurdle is to have data and insights in hand supporting your end goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By collecting all the necessary information and projections, you will be able to understand and adjust your brand extension strategy as you go to support your target.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have launched a successful brand extension, keeping the data collected and tracking them to measure how the brand image has changed, what the current projections are, and how better to dial up your resources will help you exceed expectations.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping these pointers in mind, let us now see what a successful brand extension looks like.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/amazon-marketing-strategy-case-study\/\">Read also: Amazon Marketing Strategy Case Study for The Curious<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Amazing_Brand_Extension_Examples_To_Learn_From\"><\/span><span style=\"color: #339966;\"><b>Amazing Brand Extension Examples To Learn From<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some of the best brand extension examples to get you inspired.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>1. <\/b><b>Armani: c<strong>ompany authority extension and brand lifestyle extension<\/strong><\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31420 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM.png\" alt=\"Armani \u2013 example of company authority extension\" width=\"629\" height=\"307\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM.png 1256w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM-300x146.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM-1024x499.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM-768x374.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.06.08-AM-595xh.png 595w\" sizes=\"(max-width: 629px) 100vw, 629px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.armani.com\/en-in\">Armani<\/a> is an Italian luxury fashion house that designs and retails haute couture, accessories, and home decor.&nbsp;<\/span><span style=\"font-weight: 400;\">Today, however, Armani is not limited to apparel alone. Through a company authority extension, it has diversified into the beauty and hospitality industries and boasts a range of fragrances, makeup, and hotel and restaurant chains across the world. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, Armani also has its own floral creation and chocolate brand. The brand is an example of both company authority extension and brand lifestyle extension since it has invested in sectors unrelated to its parent product. Armani has also expanded its brand to include a variety of lifestyle products while maintaining its brand distinction.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, the brand name \u2018Armani\u2019 ensures the success of the products.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>2. <\/b><b>Disney: c<\/b>omplementary product extension, brand lifestyle extension, and licensing<\/span><\/h3>\n<p><a href=\"https:\/\/www.disney.in\/\"><img decoding=\"async\" class=\"aligncenter wp-image-31425 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM.png\" alt=\"Disney - brand lifestyle extension\" width=\"688\" height=\"319\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM.png 1260w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM-300x139.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM-1024x475.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM-768x356.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.08.38-AM-595xh.png 595w\" sizes=\"(max-width: 688px) 100vw, 688px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.disney.in\/\">Disney<\/a> is an American mass media and multinational organization headquartered in California.&nbsp;<\/span><span style=\"font-weight: 400;\">Although synonymous with creating iconic animated movies and TV shows, Disney also offers products that help create a community around the brand and is a great case study in brand extension success.<\/span><\/p>\n<p>Through a brand lifestyle extension, the company sells apparel, toys, and other accessories. Disney is also known for its amusement parks worldwide, which are an example of a complementary product extension. Additionally, Disney extends its brand licensing for its characters and stories to third-party manufacturers to produce cool merchandise, making it an example of licensing.<\/p>\n<h3><span style=\"color: #993300;\"><b>3. <\/b><b>Amazon: product line extension and company authority extension<\/b><\/span><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31426\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM.png\" alt=\"Amazon brand extension\" width=\"660\" height=\"309\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM.png 1252w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM-300x140.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM-1024x479.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM-768x359.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.09.26-AM-595xh.png 595w\" sizes=\"(max-width: 660px) 100vw, 660px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">While <a href=\"https:\/\/www.amazon.com\/\">Amazon<\/a> originally started as an online bookstore, today, its operations have extended beyond it.&nbsp;<\/span><\/p>\n<p>Through a product line extension, Amazon now sells all kinds of products and has vastly expanded its brand architecture. By using its brand name to extend its services, Amazon has ventured into company authority extension with a significant market share in cloud computing, online advertising, video and music streaming, and even artificial intelligence.&nbsp;<\/p>\n<h3><span style=\"color: #993300;\"><b>4. <\/b><b>Mars: product line extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31427 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM.png\" alt=\"Brand extension example from Mars M&amp;M's\" width=\"628\" height=\"271\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM.png 1246w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM-300x130.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM-1024x442.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM-768x332.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.16-AM-595xh.png 595w\" sizes=\"(max-width: 628px) 100vw, 628px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.mars.com\/\" target=\"_blank\" rel=\"noopener\">Mars<\/a> is an American confectionery manufacturer specializing in chocolates, pet food, and other products. Though mainly known for the iconic Mars chocolate, the brand extended its line through product line extension into ice cream bars, and chocolate spreads with the same taste as the candy bars.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, people could now enjoy Mars in different ways, like chocolates, ice cream, and bread spreads.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>5. <\/b><b>Gillette Venus: customer base extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31428 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM.png\" alt=\"Gillette Venus brand extension example\" width=\"607\" height=\"284\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM.png 1256w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM-300x140.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM-1024x479.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM-768x360.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.10.52-AM-595xh.png 595w\" sizes=\"(max-width: 607px) 100vw, 607px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.gillettevenus.com\/\" target=\"_blank\" rel=\"noopener\">Gillette<\/a> is a US-based brand that primarily sells only safety razors and shaving products for men. I<\/span><span style=\"font-weight: 400;\">nitially, the brand only catered as a skincare brand for men. But Gillette later introduced shaving products for women under the name \u2018Gillette Venus.\u2019&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is an excellent example of customer base extension as Gillette managed to expand its customer base by targeting the female demographic and creating shaving products customized to their needs.&nbsp;<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>6. <\/b><b>Costa Coffee: product line extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31429 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM.png\" alt=\"Costa Coffee\" width=\"596\" height=\"279\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM.png 1252w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM-300x140.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM-1024x479.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM-768x359.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.11.34-AM-595xh.png 595w\" sizes=\"(max-width: 596px) 100vw, 596px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.costacoffee.in\/\" target=\"_blank\" rel=\"noopener\">Costa Coffee<\/a> is a British coffeehouse chain with stores around the world.&nbsp;<\/span><span style=\"font-weight: 400;\">The brand is synonymous with selling hot coffee of various kinds.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, through a product line extension, the coffee brand expanded and diversified into energy drinks, milkshakes, and cold coffee.&nbsp; <\/span><span style=\"font-weight: 400;\">This helped it target customers who were always on the move and did not have the time to sit or wait in queues to get a fresh cup of coffee.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>7. <\/b><b>Titan: product line extension<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31430 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM.png\" alt=\"Example of product line extension by Titan\" width=\"717\" height=\"333\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM.png 1280w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM-300x139.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM-1024x475.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM-768x356.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.20-AM-595xh.png 595w\" sizes=\"(max-width: 717px) 100vw, 717px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.titan.co.in\/\" target=\"_blank\" rel=\"noopener\">Titan<\/a> is an Indian company specializing in fashion accessories such as eyewear, watches, and jewelry.&nbsp;<\/span><span style=\"font-weight: 400;\">Initially known as Titan Watches Limited, the brand later diversified into selling eyewear, perfumes, bags, and wallets.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a form of product line extension since Titan focused on extending its parent product category into other types of fashion accessories.<\/span><\/p>\n<h3><span style=\"color: #993300;\"><b>8. <\/b><b>Dettol: product line extension&nbsp;<\/b><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM.png\"><img decoding=\"async\" class=\"aligncenter wp-image-31431 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM.png\" alt=\"product line extension example -- Dettol \" width=\"726\" height=\"326\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM.png 1252w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM-300x135.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM-1024x460.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM-768x345.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/Screenshot-2022-11-09-at-8.12.54-AM-595xh.png 595w\" sizes=\"(max-width: 726px) 100vw, 726px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.dettol.co.in\/\" target=\"_blank\" rel=\"noopener\">Dettol<\/a> is a UK-based disinfectant and antiseptic soap brand popular in India.&nbsp;<\/span><span style=\"font-weight: 400;\">It makes for one of the best brand extension examples \u2014 it has launched several disinfectant products within the same category.&nbsp;<\/span><\/p>\n<p>Today, through a product line extension, Dettol has smartly extended its product line into handwash gel, bathing soap, hand sanitizer, liquid detergent, and floor cleaning liquid.<\/p>\n<h3><span style=\"color: #993300;\">9. Red Bull: brand lifestyle extension, complementary product extension, licensing, and product line extension<\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Red-Bull-final.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-61286\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Red-Bull-final.jpg\" alt=\"Red Bull brand extension example\" width=\"627\" height=\"418\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Red-Bull-final.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Red-Bull-final-300x200.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/09\/Red-Bull-final-768x512.jpg 768w\" sizes=\"(max-width: 627px) 100vw, 627px\" \/><\/a>Red Bull is an Austrian company best known for its energy drinks. But they\u2019ve taken their brand to exciting new heights!<\/p>\n<p>Through a brand lifestyle extension, Red Bull sponsors extreme sports events like the Red Bull Air Race, creating an energetic image. They\u2019ve also launched Red Bull Media House, producing adventurous content as a complementary product extension.<\/p>\n<p>Red Bull\u2019s licensing efforts have brought branded merchandise like apparel into the mix. And with a product line extension, they\u2019ve introduced sugar-free and flavored energy drinks, ensuring there&#8217;s a Red Bull for everyone.<\/p>\n<h3><span style=\"color: #993300;\">10. Google: company authority extension, product line extension, complementary product extension, licensing<\/span><\/h3>\n<p>Google started as a search engine, but now it&#8217;s so much more!<\/p>\n<p>Through company authority extension, Google has ventured into cloud computing, smartphones, and smart home devices. They\u2019ve extended their product line with services like Gmail, Google Maps, and Google Drive.<\/p>\n<p>Google\u2019s complementary product extension includes Google Home and Chromecast, enhancing the user experience. And finally, with licensing, Google&#8217;s Android powers millions of devices from various manufacturers.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/brand-storytelling\/\">Read also: Mastering Brand Storytelling: Strategies and Examples<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Brand_Extension_Disasters_and_Why_They_Failed\"><\/span><span style=\"color: #339966;\"><strong>5 Brand Extension Disasters and Why They Failed<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In this section, we are unraveling some of the <\/span><span style=\"font-weight: 400;\">unsuccessful brand extensions<\/span><span style=\"font-weight: 400;\">, some by even famous brands, and how we can learn from their mistakes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not every brand extension strategy will be a sure hit; here are some significant failed brand extensions in marketing history.&nbsp;<\/span><\/p>\n<h3><span style=\"color: #993300;\"><strong>1. Colgate and Kitchen Entrees<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Whoever thought it was a good idea to pair the world\u2019s famous toothpaste with food was wrong.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The idea behind this brand extension campaign was to introduce a \u2018Colgate meal,\u2019 an entree, after which you could brush your teeth with Colgate toothpaste.&nbsp;<\/span><\/p>\n<h4><span style=\"color: #666699;\"><b>What did they fail at and why?<\/b><\/span><\/h4>\n<p>They failed at a company authority extension. The issue with this brand extension idea was that people were reminded of eating toothpaste rather than the hot meal that was offered. This failed brand extension never left the USA, fairly so.<\/p>\n<h4><span style=\"color: #666699;\"><b>What is the lesson? <\/b><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Stick to your niche, and do not venture out on uncharted waters without proper market research. <\/span><span style=\"font-weight: 400;\">Your <\/span><span style=\"font-weight: 400;\">product line extensions should always complement your brand association.<\/span><\/p>\n<h3><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1.png\"><img decoding=\"async\" class=\"aligncenter wp-image-47031\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1.png\" alt=\"Colgate brand extension fail\" width=\"619\" height=\"348\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1.png 1280w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image8-1-768x432.png 768w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><\/a><span style=\"color: #993300;\"><strong>2. Levi\u2019s Classic Suits<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Introduced in the early 1980s, Levi, which already had a substantial share of the target market for casual, rugged clothing lines, sought to expand into a new style of market: Tailored suits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tailored suits were an emerging market, and Levi\u2019s wanted to expand its brand through this niche and sustain its rapid growth rate. <\/span><span style=\"font-weight: 400;\">Not a bad idea at all, but here is why they failed.<\/span><\/p>\n<h4><span style=\"color: #666699;\"><strong>What did they fail at and why?<\/strong><\/span><\/h4>\n<p>They failed at a brand lifestyle extension. The core identity of Levi as a brand was rugged and outdoor casuals. This was in direct conflict with tailored classics on the opposite side of the spectrum.<\/p>\n<p><span style=\"font-weight: 400;\">The customers associate Levi\u2019s with its durable line of clothing, which can be used for a rough, outdoorsy lifestyle. <\/span><span style=\"font-weight: 400;\">This made the tailored suits a failure.&nbsp;<\/span><\/p>\n<h4><span style=\"color: #666699;\">What is the lesson? <\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Even though Levi\u2019s was heading in the right direction by seeking to expand, the product introduced was in direct conflict with its <\/span><span style=\"font-weight: 400;\">core brand<\/span><span style=\"font-weight: 400;\"> identity.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumers associated Levi\u2019s with one section of clothing: durable, adventure-type clothes that would be ideal for rough and tough wear. <\/span><span style=\"font-weight: 400;\">Tailored suits were exactly the opposite; hence, it was a massive failure.&nbsp;<\/span><\/p>\n<figure id=\"attachment_47030\" aria-describedby=\"caption-attachment-47030\" style=\"width: 574px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image7-1.png\"><img decoding=\"async\" class=\"wp-image-47030\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image7-1.png\" alt=\"Levi brand extension fail\" width=\"574\" height=\"574\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image7-1.png 640w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image7-1-300x300.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image7-1-150x150.png 150w\" sizes=\"(max-width: 574px) 100vw, 574px\" \/><\/a><figcaption id=\"caption-attachment-47030\" class=\"wp-caption-text\"><em>Source<\/em><\/figcaption><\/figure>\n<h3><span style=\"color: #993300;\"><strong>3. Arm &amp; Hammer Underarm Spray<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Arm &amp; Hammer has successfully established a brand that is associated with a range of cleaning products, from laundry detergents to cat litter neutralizers.&nbsp;<\/span><span style=\"font-weight: 400;\">One product that did not hit the mark was the new product line of underarm deodorant spray.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This product line extension was a massive failure as the<\/span><span style=\"font-weight: 400;\"> brand perception<\/span><span style=\"font-weight: 400;\"> is associated with \u2018heavy-duty\u2019 cleaning products.<\/span><\/p>\n<h4><span style=\"color: #666699;\"><strong>What did they fail at and why?<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They failed at a product line extension. Arm &amp; Hammer has a successful product line with a range of cleaning products. <\/span><span style=\"font-weight: 400;\">It is well-established in this niche. <\/span><span style=\"font-weight: 400;\">The issue here is a chemically heavy cleaning brand and a sensitive body part did not gel well.<\/span><\/p>\n<figure id=\"attachment_47024\" aria-describedby=\"caption-attachment-47024\" style=\"width: 394px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image1-1.png\"><img decoding=\"async\" class=\"wp-image-47024\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image1-1.png\" alt=\"Arm &amp; Hammer brand extension fail\" width=\"394\" height=\"394\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image1-1.png 488w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image1-1-300x300.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image1-1-150x150.png 150w\" sizes=\"(max-width: 394px) 100vw, 394px\" \/><\/a><figcaption id=\"caption-attachment-47024\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.target.com\/c\/deodorant-antiperspirant-personal-care\/-\/N-jhde1\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Even the product packaging reminded customers of a chemically heavy cleaning product. <\/span><span style=\"font-weight: 400;\">It just did not deliver.&nbsp;<\/span><span style=\"font-weight: 400;\">This led to a <\/span><span style=\"font-weight: 400;\">failed brand extension<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4><span style=\"color: #666699;\">What is the lesson?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Arm &amp; Hammer, which is known for making excellent cleaning products, just did not hit the underarm deodorant market. <\/span><span style=\"font-weight: 400;\">The customers could not picture themselves using a product by a heavy-duty cleaning brand like Arm &amp; Hammer.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to brand extension, it is key to stick to your core brand identity and move in the same direction.&nbsp;<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/easy-crafts-to-make-and-sell\/\">Read also: Easy Crafts to Make and Sell: A Guide to Profitable DIY Projects<\/a><\/p>\n<h3><span style=\"color: #993300;\"><strong>4. Pillsbury and Its Frozen Microwave Popcorn<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is a classic example of a great idea but poor execution. <\/span><span style=\"font-weight: 400;\">Pillsbury is a brand associated with a range of easy-to-make food products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When they introduced frozen microwave popcorn as a new product line extension, it failed to compete with the likes of Orville Redenbacher and General Mill\u2019s Pop Secret.&nbsp;<\/span><\/p>\n<h4><span style=\"color: #666699;\"><strong>What did they fail at and why?<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They failed at a product line extension. The product proposition of offering frozen popcorn did not seem valuable compared to other fresh popcorn alternatives offered by competitors.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about it\u2014why would you have frozen popcorn when you can have fresh popcorn right off the bat? This reflects a misstep in brand management as the idea didn&#8217;t align well with consumer expectations and competitive offerings.<\/span><\/p>\n<figure id=\"attachment_47027\" aria-describedby=\"caption-attachment-47027\" style=\"width: 639px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image4-1.png\"><img decoding=\"async\" class=\"wp-image-47027 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image4-1.png\" alt=\"Pilsbury failed brand extension\" width=\"639\" height=\"359\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image4-1.png 900w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image4-1-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image4-1-768x432.png 768w\" sizes=\"(max-width: 639px) 100vw, 639px\" \/><\/a><figcaption id=\"caption-attachment-47027\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.youtube.com\/watch?v=VDCDizWAKRo\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">This frozen popcorn idea, if pre-positioned in a better way as an alternative to fresh popcorn, could have hit a chord with the audience.<\/span><\/p>\n<h4><span style=\"color: #666699;\">What is the lesson?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The only thing missing in this brand extension campaign is, evidently, a lack of <\/span><span style=\"font-weight: 400;\">market researc<\/span><span style=\"font-weight: 400;\">h. They could have prevented this product line extension failure if they had adequate knowledge of the target market and <a href=\"https:\/\/www.engagebay.com\/blog\/customer-profile\/\">studied their customers<\/a> and competitors<\/span><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<h3><span style=\"color: #993300;\"><strong>5. Instant Mashed Potatoes and Cadbury\u2019s<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Chocolates and mashed potatoes?<\/span> <span style=\"font-weight: 400;\">A match made in disaster heaven!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cadbury is known for its high-quality chocolate products. They started introducing low-end food products such as instant mashed potatoes as a brand extension strategy<\/span><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<figure id=\"attachment_47025\" aria-describedby=\"caption-attachment-47025\" style=\"width: 407px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image2-1.png\"><img decoding=\"async\" class=\"wp-image-47025 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image2-1.png\" alt=\"Cadbury's failed brand extension\" width=\"407\" height=\"407\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image2-1.png 650w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image2-1-300x300.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image2-1-150x150.png 150w\" sizes=\"(max-width: 407px) 100vw, 407px\" \/><\/a><figcaption id=\"caption-attachment-47025\" class=\"wp-caption-text\"><em><a href=\"http:\/\/geekgoesvintage.blogspot.com\/2014\/05\/for-mash-get-smash.html\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">While this extension as an individual product line succeeded, the <\/span><span style=\"font-weight: 400;\">brand&#8217;s reputation<\/span><span style=\"font-weight: 400;\"> for finer chocolate weakened.&nbsp;<\/span><\/p>\n<h4><span style=\"color: #666699;\"><strong>What did they fail at and why?<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They failed at a company authority extension. Even though the instant mashed potatoes were a commercial success, the main flagship chocolate products wavered. <\/span><span style=\"font-weight: 400;\">The reason was that the low quality of the food products got associated with Cadbury, making the brand lose credibility and trust.<\/span><\/p>\n<h4><span style=\"color: #666699;\">What is the lesson?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If you are a brand known for high-quality products, it would be a huge mistake to introduce new products that are of low quality. <\/span><span style=\"font-weight: 400;\">Over time, brand recognition and credibility play a bigger role than short-term success.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Connection_Between_Brand_Equity_and_Brand_Extension\"><\/span><span style=\"color: #339966;\"><strong>The Connection Between Brand Equity and Brand Extension<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Brand equity is the value that is associated with a brand name in the minds of a consumer. A company creates brand equity over time with products that are recognizable, memorable, and of higher quality, and the brand in itself is highly reliable and credible.<\/p>\n<p>To effectively measure and manage brand equity, companies can leverage <a href=\"https:\/\/www.gotracksuit.com\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">brand tracking software<\/a>. This type of software helps businesses monitor their brand\u2019s performance across multiple platforms, track consumer sentiment, and assess how new product extensions impact brand perception. By using brand tracking tools, companies can gather valuable data that informs their brand extension strategies, ensuring they align with consumer expectations and maintain the integrity of the original brand.<\/p>\n<p><span style=\"font-weight: 400;\">Brand equity is what differentiates a high-quality and established brand from a generic equivalent.&nbsp;<\/span><span style=\"font-weight: 400;\">The image below perfectly depicts what brand equity constitutes.&nbsp;<\/span><\/p>\n<figure id=\"attachment_47029\" aria-describedby=\"caption-attachment-47029\" style=\"width: 458px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\" wp-image-47029\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image6-1.png\" alt=\"Brand equity\" width=\"458\" height=\"429\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image6-1.png 1130w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image6-1-300x281.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image6-1-1024x961.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2022\/11\/image6-1-768x720.png 768w\" sizes=\"(max-width: 458px) 100vw, 458px\" \/><figcaption id=\"caption-attachment-47029\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.qualtrics.com\/au\/experience-management\/brand\/brand-equity\/\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">A company with higher brand equity will ensure that customers willingly pay a higher price for their products and trust the brand over the competitors.&nbsp;<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Now, how is brand equity tied to brand extension?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The core of a brand extension strategy is to build on what is already a solid foundation. <\/span><span style=\"font-weight: 400;\">This means utilizing a company\u2019s well-established brand equity to help expand the brand.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a new product line extension, a brand relies heavily on customer loyalty with existing clients and brand identity for new clients. Both of which are part of brand equity.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a survey by<\/span><a href=\"https:\/\/www.oberlo.com\/blog\/branding-statistics\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> Oberlo<\/span><\/a><span style=\"font-weight: 400;\">, 46% of consumers would pay more for brands they trust. <\/span><span style=\"font-weight: 400;\">Before extending your brand, it is important to establish brand equity and what the core of the brand is.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The next phase would be to analyze which part of the brand image is beneficial for the new product or service.&nbsp;<\/span><span style=\"font-weight: 400;\">Another key is understanding how the new product would add or subtract to the existing brand equity. <\/span><span style=\"font-weight: 400;\">Combine this with adequate market research and projections, and you will have a strong brand extension strategy.&nbsp;<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wrap_Up\"><\/span><span style=\"color: #339966;\"><b>Wrap Up<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Brand extension helps businesses expand their clientele by introducing products and services that meet customers\u2019 needs.&nbsp;<\/span><span style=\"font-weight: 400;\">These brand extension examples show how well-established companies use it to target a wider demographic and can either be related to or different from the parent product category.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brand extension is an efficient marketing strategy, allowing companies to launch new products under the same brand name. <\/span><span style=\"font-weight: 400;\">It saves the trouble of spending money on branding and helps businesses grow their revenue further.<\/span><\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n          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rel=\"noopener noreferrer\" data-stringify-link=\"https:\/\/www.engagebay.com\/blog\/author\/swastik_sahu\/\" data-sk=\"tooltip_parent\">Swastik Sahu.<\/a><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dove is a well-known hair and skincare brand that is popular for manufacturing women&#8217;s skincare items like soap, body washes, 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