Some of the most meaningful, transformational brand extensions came to fruition as a result of companies tapping into intangible yet salient aspects of their brand positioning. Like many other components of branding and brand strategy, successful extensions first require a shift in mindset.
A brand extension, simply put, is when a brand moves into a new product category while still competing in its original category. Brand extensions can benefit the parent brand in several ways, including:
Brands must continually grow to thrive and maintain relevance, however, achieving and sustaining profitable growth is a challenge. One of the most common ways for an established brand to achieve meaningful growth is through brand extensions, but many brand leaders struggle with how far they can (or should) stretch their brands’ boundaries. Play it too safe, and ho-hum line extensions will underwhelm customers; stray too far from the brand’s core positioning, and you risk diluting or causing irreversible damage to your brand’s valuable equity.