Brand Extension – Definition, Advantages, Success and Failures.

Brand Extension

Brand extension is marketing strategy in which a marketer launches a new product with well-developed brand using the same brand name. Brand use this strategy to increase visibility and leverage equity.

An existing brand that develops brand extension is known as parent brand. For example, Nike dealt only with shoes but now it has variety of products like watches, caps, jackets and so on.

While there can be significant benefits in brand extension with significant failures in brand extension. With every advantage there is disadvantage.

The advantages of brand extension:

1.    It increases brand image.

2.    Cost of developing new brand is reduced.

3.    Consumers can now seek for variety

4.    There are packaging and labeling efficiencies.

5.    The expense of introductory and follow up marketing programs is reduced

The disadvantages of brand extension:

1.    Brand extension may get loss of reliability, if it is extended too far.

2.    There can be chances of damaging the image of the brand by the new product.

3.    If the brand extension has no advantage over competing brands then it may lead to failure.

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Five Tips for Branding Small Businesses

Do not follow the myth that Branding is only for large companies and not for you. Follow these five tips to brand your small business as big business.

Tip#1 Your Brand Logo doesn’t Really Matter-

Would you choose MSN over Google because the logo is not so attractive? A good professional logo is great but it rarely increases the sales. It is more important to include your logo in every piece of communication. Include your logo in newsletters, letter heads, envelopes, invoices, yellow pages ad, building signage and so on.

Tip#2 Have a Professional Website-

It is good enough to have a website which will reflect your brand.  Your website should be updated at least once in 2 years. The website should include all the relevant information in detail. If you are not on web then you are nowhere. These days’ people refer internet to get the information about anything.

Tip#3 Blogs are Good-

Blogs help your business on multiple levels. Firstly, valuable content on a consistent basis will make you look like expert.  People are looking for experts and not apprentices. The software that powers blogs has multiple advantages.

Tip#4 Blogs are good but they are just one tool-

A blog should not only be your marketing tool. You can market through various other tools, like direct mail, email campaign, webinars, sponsor a local and attend tradeshows. There are a thousand numbers of ways for you to be noticed.

Tip#5 Prepare on page corporate view-

Use short sentences in short paragraphs - people like to read it quickly. Also make it conversational because it is not a whitepaper. Your one page view should include your value proposition, target audience benefits, previous audience experience and a mini case study and do not forget your contact information.

#Bonus Tip- Branding is as much about your people as anything else- Never forget the best interaction comes from one-on-one conversations between executives, suppliers, employees and customers. Employees that want to help and do the best job possible go a long way. 

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How to Brand your Brand?

Branding your brand. A brand is a message based upon a promise and expectations of the product/service and overall company. The message is developed and distributed via various channels for consumers to receive and react. As consumers encounter, experience the product/service and develop a relationship they begin to influence the brand.

So what can a company do to increase their recognition at marketplace? Here are 10 tips to how to brand your brand to increase the name recognition of your firm.

1.    Hire a branding company to bring your image and message under a brand.

2.    Develop a mission statement that shows your reason for being and the value you provide to your customers.

3.    Develop a memorable tagline that expresses who you are and what you do.

4.    Make a matrix of all those you would like to reach in the next year and the potential influencers on those people.

5.    Develop all collateral and image materials to coincide with the brand and your message.

6.    Regularly write and issue press release to the media, your website, and onto the internet.

7.    Diversify all marketing, PR and media to reach the markets where your clients are to be found.

8.    Participate in at least two national and local industry conferences.

9.    Create and issue an online or direct mail newsletter.

10. Participate in professional internship programs.

Branding your brand is very important task to look into. Without perfect branding you will not be recognized at the marketplace.

To know more on Branding, grab a copy of Build YourBrand on web. 

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It’s all about Brand Packaging. Are you replicating your company’s image through your brand?

Your brand image is your company’s image. Does your brand reflect your company profile? What is your brand talking about you in the market?

It is important to realize that packaging always either has a negative or positive influence on the purchaser. A negative impression can detour a potential customer, just as a positive reaction can influence a customer to buy. A time to pay special attention to your packaging is when you are in the launch of a “new” brand.   

Packaging can be judged and represented by the following common business tools:

·         Business cards and stationery

·         Website

·         Answering system

·         Email address

What does your business cards and stationery saying? What does your website say about your company? What does your answering system say about your company? And what does your email address talk about your company?

These areas can strengthen or weaken your image of your brand. Use a valid image, formal/business email address so that it builds your image quality and your company’s reputation.

Clients, customers, prospects, will measure your company’s image on these areas. These act as very important keys to build your brand and your organization’s status.

Grab a copy of Build your brand on web, now!!!

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