What's a brand extension? + 5 examples for inspo

As consumers, we are exposed to and make use of brand extensions all day without even realizing it. Whether we are sipping an exclusive Pepsi brand while watching TV, checking out the aisles of frozen food at the store, or online shopping for new moisturizing products - most likely the product fits under a parent brand and is an extension of the original offerings of the company.

What is the reason companies use brand extensions? If you guessed money it's true! Some companies make a lot of money off being able to master a single product, the real reason companies have brand extensions is the fact that they could be highly profitable if they're the company is successful.

 What's a brand extension?

Let's set the meaning of "brand extension" straight first. On the outside, it seems like something that's a fancy term used in corporate marketing, but in reality, it's pretty straightforward.

An branding extension is the time when a well-established firm or business begins selling a new product or offering in an entirely new area under the name of its brand.

 The distinction between extension of brand and line extension

Instead of delving in the finer details of every method to create a brand extension for your products (there are plenty) one of the most common ones every entrepreneur should be familiar with is a brand and the line extension. Though they're both kinds of extension for your product however, they have a few fundamental differences.

Brand line extensions are when a company launches some of its items with a twist . For instance, have you ever thought about Coke Zero Sugar or Diet Coke with Lime? It's the same product with a brand new name - but, it has the appealing flavor that draws fans of Coca-Cola back to try it. Line extensions generally are less risky since it's within the same product category. Sometimes, a brand line extension is also called a vertical extension because it is also applicable to items that have tiered choices. Televisions are an excellent instance of this because they can be purchased as a TV in a different size or with more features added - to put it simply there are more affordable options or a fancier version within the same brand product.

The flipside is that a brand extension is an entirely brand new product within an entirely new line of products - we're looking at you, Dyson Supersonic(tm) hair dryer. Dyson is an excellent illustration. Once only known for its vacuum vacuums, the business utilized its technological know-how to expand its products into the beauty industry through the release of an ingenious hair dryer and other hair styling tools. It paid off hugely. There are segments of the population where more people now know about Dyson's hair dryer than their new vacuum cleaner. This is also known as a horizontal brand extension that is when a brand's parent produces a brand different product beneath it.

 Real-life brand extension examples

As we mentioned earlier, extension of brands are commonplace nowadays. There are many examples we've used. some examples before and here's five additional brand extensions that are real to reference to help you come up with ideas.

1.   Topo Chico Hard Seltzers  

Topo Chico is a well-renowned mineral water maker hailing from Mexico which is part of Coca-Cola. It has a recognizable bottle, taste, and logo. The latest extension of the brand can be described as Topo Chico Hard Seltzer - spiked sparkling water. The brand has entered a new market segment by selling spirits and is enjoying great success thanks to its established status in the beverage space. It paid off - its latest product was the third fastest hard seltzer brand selling nationally last year.

1.   Apple Watches  

Apple We all have heard of it and most likely use or employed some of its services at some point in the past. Because the company was founded with a line of computers and smartphones, the Apple Watch product is a perfect example of brand extension. It can be seen as an expansion of the iPhone and, although at first, it was not a huge success however, after a meticulous marketing strategy and a focus on health and fitness, Apple consumers jumped at the chance to purchase the new product. In addition there is that the Apple Watch has a brand line extension itself since Apple continually releases updated ones that come with various pricing levels.

1.   Fenty Skin by Rihanna  

After Fenty Beauty generated $550 million in revenue within the first year. it became one of the most successful known brands that were fronted by celebrities. Given the reputable credibility and long-lasting fan base that is Fenty Beauty, Fenty Skin was born. Rihanna launched her skincare brand in a strategic way; Fenty Skin is marketed as gender neutral and all-inclusive skincare line - which is different from many existing skincare companies. This is an excellent instance of a brand expansion that has invited a broader market to a brand's parent.

1.   Amazon and Whole Foods  

When Amazon purchased Whole Foods, everyone did an oblique glance. This unlikely pairing changed the way customers shop and buy grocery items. It is a unique instance of brand extension due to the fact that when Amazon purchased Whole Foods, the grocery chain kept its own branding. But, by utilizing Amazon's loyalty program for discount on food items The delivery service was able to expand its name into a new category.

1.   Star Wars Franchise  

The industry of entertainment is known for brand extensions! Sequels, spin-offs, as well as TV adaptations are among the many methods used by entertainment companies to create brand extensions. Star Wars is a great example with several different television shows, franchises, video games, merchandise, and books. There's an even theme park located at Disneyland. The Star Wars franchise has generated a loyal customer base and Disney has recognized this , and not only cultivated new audiences around it but profited well from the various extensions to its products.

 What is the best way to create the extension of your brand as an online entrepreneur

While it's easy to imagine brand extensions in relation to physical goods, for internet-based entrepreneurs, the possibilities for extending your brand are endless.

Craig Beck is an outstanding illustration of an internet-savvy entrepreneur who has used his brand to create several extension of his brand. Utilizing , Craig has launched a range of digital services - not only does he have an extremely well-known and popular sobriety coaching, but he has expanded his brand's offerings to include personal coaching and investing coaching! Craig has managed to extend the coaching brand to different categories which has allowed him to grow his audience and revenues.

The process of developing a brand extension for an online entrepreneur should come in three crucial parts:

1. Research: We cannot stress this enough, research! This is specifically referring to the research of your audience. The research of your most loyal customers is critical for brand extensions. Without their loyal loyalty, you will most likely expect a product to flop. Send a survey out in your community, lead an online focus group or have a town-hall Instagram live in order to gather the opinions of your followers.
2. Create with your parents brand in mindWhen designing an extension for your company, be sure you don't distance your brand from its parent brand. Whether you want to have the same brand name as well as logo, theme, or even a line, you'll want your brand extension to be recognizable.
3. The beta test The beta tests that are typical of digital products as well as software. Beta tests are when you make your version or upgrade to a select sample of customers first, to see their reactions as well as work out any issues that may arise, and so on. This is a fantastic way to test the waters and get feedback prior to deciding whether you want to invest time and resources in developing a full branding extension, which could prove unsuccessful.

One of the best things about testing a new brand extension with digital items is that it doesn't require you to pay for it - you could offer your program or site membership at no cost without having to spend manufacturing money on an actual product. This is a win-win.

 Words of caution regarding extension of brands

We'll be blunt - brand extensions can fail if done poorly. Do you remember the scandal of IHOb/IHOP in 2018? IHOP extended its brand by offering new burgers and making a public relations move, changing their brand's logo from IHOp to IHOb. Although it was a hit, many thought that it was more an April Fools Joke instead of a brand extension. When competitors and fans mocked the business on social media, there was no any official recognition of its innovative and better items (burgers) and it was a disaster for the restaurant chain.

Amazon's Fire Phone failure is another example of a poorly executed branding extension. After seeing success with its Kindle line, Amazon decided to launch a phone. But, the iconic brand's phone was not compatible with a variety of applications, and was expensive which is why people didn't like it. Amazon did not conduct an exhaustive study of the audience to find whether their customers were likely to buy a phone.

What can we gain from these mistakes? Do your research and use your followers as the main source for ideas and online product launches. Be careful of venturing into new areas in which there is less credibility - it could cost you.

 Building your brand and product

If you're an entrepreneur on the internet trying to grow your business with the correct method by conducting the appropriate research and vetting will enable you to develop extension of your brand that can boost your existing audience and invite new members into your ranks.