#MarketingMinds chat wrap up: Brand Extensions
Last week’s chat covered brand extensions. Here’s what participants had to say.
Q1. What are brand extensions?
@1DigitaLife explains brand extensions as a company’s attempt to add a new market or category and aligning that audience’s wants with the re-hashed product or service proposition.
Q2. Name three reasons why companies would choose to extend their offering.
@ThinkDesignbuzz suggests companies may choose to invest in brand extensions in order to rejuvenate the brand; furthermore brand extensions can also help achieve a competitor advantage and increase ROI and brand equity.
@YesSharleen adds natural evolution of products or services outgrowing the primary brand as an additional reason for businesses choosing to invest in brand extensions.
@Jack_ricketts1 further explains that extensions created by large core companies have the added benefit of economies of scale when it comes to promotion. Moreover, brand extensions can also facilitate brand awareness for the core company as well as amongst the new audience.
Q3. Around 84% of brand extensions fail. What is the key to success?
@ThinkDesignbuzz comments that one reason for a high failure rate amongs brand extensions is due to inappropriate timing. It’s therefore important to research consumer and competitor trends before deciding whether or not to invest in a brand extension, as @Jack_ricketts1 also explains.
@YesSharleen advises that a clear understanding of what we’re aiming to achieve is important, this can be reached by defining our brand position. For example, will the new brand leverage the primary brand, or be completely independent? @THINK_Lyndon adds that understanding our core brand values is essential and that we should keep these at the centre of everything we do.
Q4. How do you know if a brand extension has been successful?
Research conducted after launch is equally as important as prior to it. @AgentPalmer says one key focus area to look at is whether our audience feels there that there’s an alignment with the product offering and our brand; although it doesn’t necessarily mean we have failed if this isn’t the case just as long as the lack of alignment has a positive effect. @YesSharleen states that clarification over brand offering is also important to research. Check out our previous blog on how social media monitoring is the new focus group here.
@THINK_Lyndon suggests that we also monitor market share in the new segment and bench mark ourselves against competitors in order to determine brand extension success.
Q5. What are your favourite brand extensions of all time?
@ThinkDesignbuzz favourite brand extension is Apple and how they have developed their portfolio range from computers into MP3 players, phones, tablets, wearable technology (and the list goes on!)