What is a brand extension? Check out some examples and the advantages of having one in your company

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In this article, we tell you what brand extension is and everything you need to know about the topic so that this strategy can provide you with the results you need.

Here we go!

What is brand extension?
Brand extension is a marketing strategy in which the image of the company , or of an already established product, is used to launch a new product or set of products , which may or may not be related to its main category.

Nowadays, it is very common for companies to use brand extensions to expand their product mix by taking advantage of the name they have already built up to that point.

In this way, it is possible to reach a larger market segment and reach new customers, as well as open new sales channels.

Why is brand extension important?
We are dealing with an increasingly competitive market and this forces companies to present something new to their public from time to time. In this way, organizations increase their market share , reinforce their authority and innovate by creating a new line of products .

This way, it is possible to keep the attention of existing consumers and at the same time reach new potential customers . In addition, by taking advantage of their image, excessive expenses with the promotion of the launch are saved , optimizing the business' resources.

It is a vicious circle, the more products and product lines the brand has, the greater its value and the greater its value, the easier it can launch new products.

What types of brand extension exist?
There are different types of brand extension, below we will see some of them.

Category extension
Category extension occurs when a brand azerbaijan phone number list launches a different product line to reach different market sectors. For example, a company that is known for making clothing launches a line of suitcases.

From this perspective, we can mention Bic, which started with its pens and then launched its lighters, both of which are now known by everyone.

Line extension
Line extension is when a company extends the product line it already has, but maintains a relationship with the existing ones. For example, a women's clothing brand launches a men's line.

In the market we can mention Colgate, which in addition to toothpaste launched its mouthwash, dental floss, among others. All products dedicated to oral hygiene.