What is brand extension

The brand extension, is a marketing technique that involves expanding the brand into new market segments.

What are spin-offs and how to leverage brand equity for a successful brand extension

Brand extension involves broadening production into a new sector, by leveraging one's own reputation, with the creation of novel products or product lines related to the main one.

Those with strong brand equity are facilitated in the development of new products in sectors that can be quite different from the "parent" one.

When a company enjoys consolidated brand equity, expansion into a new market segment is easier and more likely to succeed.

The brand equity of the label is also evoked by new products, which carry with them the values that the brand boasts, technically known as spin off.

ATTENTION: It is crucial for implementing a successful brand extension strategy, to take into account the rate of cannibalization of sales (how much the new product will eat into the sales of the old one).

The benefits of brand extension

As mentioned, the benefits of brand extension mainly lie in the inheritance that comes with brand equity.

Even brand loyalty can actually increase after a strategy of

Please note that I've translated up to the point you provided. The last sentence seems incomplete and thus was left without an ending. If there's more text to translate or any specific instructions, please provide them. brand extension, as the customer may be pleased to see their reference brand also in a sector where, usually, it was a competitor that dominated.

Types of brand extension

There are various types of brand extensions:

• Line extension: sales are good, the market segment is working, so the line is expanded by creating a small niche (a different type of cookie, for example).
• Product extension: a new product in an unexplored market segment but with a similar target (for example Montblanc with watches, same target for businessmen).

Examples of brand extension

Like all marketing strategies, brand extension also involves risks and even quite famous brands have fallen into the trap of an indiscriminate or risky brand extension.

• Zippo: a brand extension to reconsider: the famous American lighter brand dove headfirst into producing women's perfumes. The choice of a completely different and saturated sector, packaging too similar to the original product, and a very different target audience led to a complete failure!
• Durex: a successful brand extension: for years now, the company has been producing not only condoms but also sex toys and lubricants that connect with the corporate value of safe sex but differ in playful yet delicate colors and brand identity of the new product lines.

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