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Types of Brand Extensions
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Product Line Extension
The addition of new products to an existing product line within the same category. Example: Coca-Cola introducing Cherry Coke.
Companion Product Extension
Introducing products that complement or are used in conjunction with the company's existing products. Example: Apple introducing AirPods to complement the iPhone.
Brand Expansion through New Product Lines
Introducing a new product line outside of the company's current range. Example: Toyota creating the luxury division Lexus.
Geographical Brand Extension
Expanding a brand into new geographical markets. Example: McDonald's expanding globally into countries like India and China.
Customer Franchise Extension
Expanding a brand into new product categories based on the strong loyalty of customers. Example: Harley-Davidson moving from motorcycles to apparel.
Company Expertise Extension
Using the company's expertise in one area to extend into another market. Example: Honda's extension into lawn mowers and marine engines.
Brand Image Extension
Using the brand's existing image to market a new product. Example: Virgin Group's diverse portfolio including airlines and music stores.
Brand Licensing
Allowing another company to use the brand's name and trademarks to produce a product. Example: Disney licensing its characters for toys.
Ingredient Branding
Promoting a brand not for the end product, but as a key ingredient or component of others. Example: Intel processors in PCs with the 'Intel Inside' branding.
Cross Brand Extension
Collaborating with other brands to create a product that benefits from the combined brand equity. Example: Nike and Apple creating the Nike+ iPod Sport Kit.
Prestige Brand Extension
Extending a luxury or premium brand into another high-end market. Example: Porsche designing sunglasses and luggage.
Private-label Brand Extension
When a retailer uses its brand to introduce products in a category they don't manufacture. Example: AmazonBasics offering electronics accessories.
Service Brand Extension
Expanding from physical goods to offering services. Example: Apple moving from selling hardware to offering services like Apple Music.
Line-Fill Brand Extension
Adding new items within the same product line to fill the gaps. Example: A clothing brand introducing a 'petite' line for shorter customers.
Up-market Brand Extension
Extending a brand upscale by offering products that are perceived higher-end or more premium. Example: Toyota launching the Lexus brand for the luxury vehicle market.
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