What is Brand extension and Brand stretching?
Brand extension and brand stretching Marketers have long recognised that strong brand names that deliver higher sales and profits (i.e. those that have brand equity) have the potential to work their magic on other products. The two options for doing this are usually called “brand extension” and “brand stretching”. Brand extension: – Brand extension refers to the use of a successful brand name to launch a new or modified product in a same broad market. A successful brand helps a company enter new product categories more easily. For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to become a washing powder brand too. The Lucozade brand has undergone a very successful brand extension from children’s health drink to an energy drink and sports drink. Brand stretching: – Brand stretching refers to the use of an established brand name for products in unrelated markets. For example the move by Yamaha (originally a Japanese manufacturer of motorbikes) into branded
