Topic > Successful Brand Extensions - 926

IntroductionBrand extension refers to the effective use of an already successful brand to launch a new or modified product into a new market or niche. Brand management is a key element in every company's product strategy, especially those operating in highly competitive markets. Brands cannot be developed in isolation, as they are normally classified within a group of company products or product lines. With respect to a product mix, its breadth can be measured by the number of product lines a company offers. This is because a product mix is ​​the total set of brands marketed by a company; therefore, it contains several product lines. Consider the following brands and discuss the extensibility of the brands. Brand extension refers to a marketing strategy in which a company marketing a product with a strong image uses the same brand in a different brand category. It is also known as brand extension because organizations use it as a strategy to leverage and increase the brand value of the organization. This helps increase brand awareness and at the same time increases the organization's profitability from offerings in more than one product category. Brand extension depends entirely on how strong consumers' associations are with the brand's goals and even values. Harley-Davidson Founded in 1905, Harley-Davidson Motor Company was the only manufacturer of motorcycles in the United States after Indian Motorcycles closed in 1953. “Motorcycle culture” developed in the 1950s and 1960s. This was influenced by films such as "Wild ones" and "Easy Rider", which helped equate Harley-Davidson with the lifestyle of an outlaw biker perceived as...... middle of paper.... .not popular with the masses, because the product is often seen as the quintessential Australian product.Summary In the early 1990s, many new products used brand extension to create sales and introduce new brands into the market. Brand extension helps mitigate budget constraints and costs used to launch a new product. This is because launching a new product not only requires a large budget, but also requires a lot of time. Brand extension is instrumental in creating awareness and promoting product benefits. It helps reduce financial risk by using an established parent name to improve consumers' perceived brand perception through brand equity. This article examined a number of brands and their successes and failures in terms of brand extensibility, including Harley-Davidson, Red Bull, Tommy Hilfiger, Victoria's Secret, and Vegemite.