When a company starts to use an existing brand name on another different type of product?

A brand extension is when a company uses one of its established brand names on a new product or new product category. It’s sometimes known as brand stretching. The strategy behind a brand extension is to use the company’s already established brand equity to help it launch its newest product.

What is taking an existing product to a new market?

Taking a Product to a New Market Entering a new market means understanding a new target audience, a new competitive landscape, and different market dynamics. In these cases, you can implement your market-entry plan with your current overall branding, visuals, look and feel, and voice and tone.

How much does it cost to rebrand a product?

In that context, the average rebranding initiative costs about 10\%–20\% of the marketing budget. For example, if your annual revenues are $15M and your marketing budget is $750K, you can expect your rebranding costs in the range of $75,000 to $150,000 to overhaul your company’s brand.

When an existing brand name is extended to a product of a different category it is called?

Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily.

What is the launch of an existing brand in different categories called?

Basically, a brand extension is leveraging an existing brand to promote a product in a different category. There are various types of brand extension such as product form, companion product, expertise, customer franchise and brand image type.

Can you give examples of successful and unsuccessful brand stretching?

Dettol stretched from disinfectant to a full range household and personal hygiene brand. Virgin have stretched to everything. There are examples of brands that stretched unsuccessfully and did damage to the core brand. Xerox never stretched successfully from copiers to computers.

How much does it cost to do a brand activation?

A staple in experiential marketing, you can use one or put several together to create an event space or a popup retail shop. Activations using shipping containers take 6 weeks to 3 months of planning time. The budget can range from $100,000 to $300,000 and up.

How much does it cost to change a company logo?

The cost of a logo design is anywhere from $0 to tens of thousands of dollars, but if you’re a small business or startup looking for quality design, a good logo design should cost between $300-$1300. Logo design prices can vary, for instance the price of a logo design depends on the quality and who created.

Why do brand extensions fail?

And the No. 1 reason why some brand extensions fail is simple: they don’t bring enough meaningful value to the consumer.” Roberto Abramovich’s insight: Often commented topic and still so core and difficult to implement.