In this case, the new product is called a brand extension and the brand that gives its name to this new product is the parent brand. Brand expansion depends on the brand’s ability to create a competitive advantage by leveraging the prestige attached to the brand name in the growth category, unlike existing categories. Brand extension is perceived by customers’ perception of the quality of major brands. An existing brand guarantees quality, reducing the risk of buying a new product. In line extension the parent company launches a new product segment in a category already known to the customers.

Merits of Brand Extensions

This strategic partnership allowed GoPro to enter the aerial photography market while leveraging DJI’s established presence and expertise in drone manufacturing. Co-branding enabled GoPro to expand its product offerings and appeal to adventure enthusiasts seeking high-quality action camera and drone solutions. When Apple launched the iPhone, it was a brand extension of the iPod.

Types of Brand Extensions

However, for a brand with less brand equity, extensions can be much more risky. The cap-gap extension for F-1 visa holders transitioning to H-1B has increased. Previously, work authorization ended on October 1 of the same year. As a result, Andersen Consulting was required to change its name.

Leveraging brand equity involves using the established reputation, consumer trust, and recognition of an existing brand to introduce new products or services in related or complementary categories. For example, Nike successfully extended its brand from athletic footwear to apparel, accessories, and equipment. As a marketing strategy, brand extension has both advantages and disadvantages. The main advantages of brand extension are that it can be a relatively low-cost way to enter new markets and that it can leverage the equity of a parent brand name to create brand loyalty among new customers. Brand stretching involves extending a well-established brand into a new market segment that may not be directly related to the core product category. This type of extension relies on leveraging the brand’s reputation, trust, and consumer loyalty to enter entirely new markets.

Nike’s Jordan Brand

Too far and the result is brand dilution, or a loss of meaning for the brand. Brand extensions / category extensions should be towards adjacent product categories. When a prevailing product’s name is allotted to a new product in the same product category or entirely under a new company, it is called horizontal brand extension. Based on their motto, there are two further segments of horizontal brand extensions which are line extensions and franchise extensions.

  • Organisations need to indulge in various brand strategies to stay ahead in an increasingly competitive market and present new products to their target audience.
  • This type of extension relies on leveraging the brand’s reputation, trust, and consumer loyalty to enter entirely new markets.
  • However, it was the same formula as regular Pepsi, and the only thing that differentiated itself from its parent brand was the design of the can.
  • This strategy helps maximize sales opportunities, increase market share, and maintain consumer interest over time.
  • When it decided it wanted to launch a new automobile geared for the American youth market, it decided to go with a decentralized strategy.

Another type of brand extension is category extension, which is when a company launches a new product that is in a different category than the original product. For example, if there was a successful brand of coffee called “Java,” a category extension would be launching a line of Java-branded coffee mugs. Category or Brand Extension is a strategy by which, a company uses the same brand to enter into a completely unrelated product segment. The company leverages on the brand equity and success of its existing brand to introduce the new product to increase market acceptance. Toyota is one of the largest automobile companies in the world, with several successful brand extensions. When it decided it wanted to launch a new automobile geared for the American youth market, it decided to go with a decentralized strategy.

However, the company also has a line of single-serve coffee machines called Nespresso. Line extension involves an extension of the existing product category. For example, Coca-Cola releasing its ‘Diet Coke’ variant was a line extension where the product didn’t release in a totally new category. Chrome Web Store extensions let users customize the browsing experience and tailor Chrome functionality in various aspects. You can open Chrome Web Store to install extensions to get productivity tools, web page content enrichment, information aggregation, games, and more. Extensions are built on web technologies like HTML, JavaScript, and CSS.

Hit “Manage Extensions”

For example, Beauty blender, a company that once focused on just one product, the revolutionary pink makeup sponge, easily introduced foundations, sprays, primers, and an entire line of foaming tools. Indeed, the relationship between one type of makeup and another is clear, if not completely obvious. Brand extension is no small task and much more difficult when a brand goes too far from the original product portfolio. This category has the following 42 subcategories, out of 42 total.The number of included categories (C), pages (P) and files (F) is stated in brackets. Coca-Cola is a soft drink company known for its flagship product, Coca-Cola. However, the company also manufactures a line of bottled water called Dasani.

The Yellow Pages was re-invented, and the new brand was called “YP.” The brand now focused on finding phone and address information via the Internet. While the size of their business has decreased, they were able to save it with a proactive re-brand. A brand shouldn’t be extended unless it has an excellent reputation and positive brand equity. You may not realize it, but you see brand extensions around you every day. The contest was incredibly popular, and was a great marketing idea for Frito Lay, Lay’s parent company. On December 13, 2024, the USCIS announced major updates to Employment Authorization Documents (EADs) and cap-gap provisions.

Category:Extensions

Once you know your category code, you’ll need to fill out Form I-765, Application for Employment Authorization. The form asks for basic information like your name, address, date of birth, and Social Security number (if you have one). You’ll also need to enter your EAD category code and provide details about your immigration status. A line extension is when a company launches a new product that is in the same product category as the original product. For example, if a company that makes shampoo decides to launch a new type of shampoo, that would be considered a line extension. Co-branding is not a new marketing strategy, and you see examples of co-branding frequently in the marketplace.

According to USCIS, the decision aligns with recommendations in the USCIS Ombudsman Report. ‘‘I Am Your Idea’’ was a global campaign, based on an attention-grabbing concept. The ad aimed to promote Accenture’s ability to turn its clients’ vision into reality. Usually consulting firms are criticised for imposing their own notions on clients. However, this ad campaign promoted the thought of a consulting firm that helps its clients in implementing their own ideas.

Examples include luxury fashion brands diversifying into home decor or automotive brands expanding into lifestyle products. Each strategy requires careful planning and alignment with brand positioning to ensure successful market adoption and sustained business growth. A successful brand extension strategy maintains a coherent connection between the core values, image, and positioning of the original brand and the new product category.

  • So in order to increase its brand equity, Intel partnered up with large computer companies, such as IBM, Dell, and Hewlett-Packard.
  • So, they decided to re-brand themselves as “The Shack.” It didn’t work.
  • Google has a very strong brand, and all the products and brands it brings fit well in Google’s structure.
  • Innovation and differentiation involve introducing new features, unique selling propositions, or distinctive characteristics that set the brand extension apart from competitors.

These inferences can improve the strength, popularity, and uniqueness of the extension’s brand association. If approved, you’ll receive your Form I-766, Employment Authorization Document. It serves as proof that you are allowed to work in the United States 🇺🇸 for the time listed on the card. After preparing your form and documents, submit your application package to USCIS. You can file online for many categories, or you may need to mail your application to the address listed in the USCIS instructions.

USCIS Justification

This category lists information and pages relating to MediaWiki extensions. However, the company also has a line of products called the Jordan Brand, which is named after basketball legend Michael Jordan. Starbucks is a coffee company that started category extension out selling just coffee. However, the company has since expanded its menu to include food, tea, and other beverages. There are dozens of reasons a brand might want to partner with another brand.

Or FedEx and Kinkos, where people who need to make copies and put together presentations often need to ship those items. It was now the parent company of Philip Morris, Kraft, and a few other brands. Now, when people hear the name “Altria,” they do not think of cigarettes or tobacco.