Brand extension is a method companies use to introduce a new product or service in a different category or launch the same under the current brand name. To pioneer a new offering, prior research and investments are needed, for which finances can be managed with the assistance of business loans or sponsorship, and tie-ups with other organizations.
Significant Methods of Extending a Brand
The goal of extending a brand is mainly to increase the customer base and loyalty in order to increase profits for the parent organization. We have seen many successful and unsuccessful attempts by top-notch organizations in introducing something new to the customers.
- Mostly, a logical association is maintained between the new and original product.
- Either one can combine the new product or service with another or make it remain a sidekick to the original offering.
- Some methods of brand extension are shifting the form of existing brands to another. For example, a clothing company venturing into food products.
- While others can relate to focusing on influencing the lifestyle or emotive concepts relating to customers and giving a new meaning to the original product or service.
In this way, one may want to understand what it takes to make a brand extension idea work for the company and the customers.
A Roadmap for Leveraging a Brand Extension Idea
The brand extension decision is most proficient when it becomes a part of a larger marketing strategy. It must be a long-sustaining plan than a one-off decision so that the life-cycle of the offering is good enough to attract and retain customers’ interests.
- If the product or service represents real solutions to peoples’ requirements, then it may definitely stay longer in the market and have the potential to cut past the competition.
- The idea of the offering must be well-defined and create a sense of belonging for the customers so that the brand ‘sense’ is compelling enough to maintain high sales.
- The new brand extension is not justified until it adds value to the existing brand or the company objectives, along with fulfilling the demands of the target audiences.
- Customers’ needs must be taken in account before initiating the product or service in question. One must constantly upgrade and strategize for the brand extension to carry on its thrill to its primary audience.
Many times, when a brand extension is doing really well among the audience, the organization may stop the research process, or ‘take it easy’ in their marketing approaches. Such practices may leave loopholes for the competitors to exploit.
Importance of Business Loan for a Brand Company
Market challenges are not unheard of, and a brand extension can face hardships along its survival journey. If sufficient monetary and resourceful assets are not in place to answer the emergencies, then the new product or service along with the original brand can suffer heavy losses, not only in profits but also in its reputation.
There are times when a firm misses out on sufficient monetary methods to fuel its operations. Thus, it must look into the business loan option to orchestrate finances as needed, without disrupting the brand extension activities. An unsecured small business loan will aid the organization receive an economic stronghold.
There are several EMI schemes one can choose from, along with attractive interest rates. Repayment becomes easier if the businesspersons or entities involved keep a check on their credit line, and spending behaviour.