Brand extension is a marketing strategy whereby a company, which has already achieved great success in the sale of a particular product, decides to use the same brand name in a different product category. Brand extensions are of two types. The first one is line extension and this is where new products introduced in the same category as the parent brand. The second is referred to as category extension. This is a strategy whereby new products are introduced into the market in different categories than the parent brand. That new product is known as a spin-off
There are several advantages of brand extension and these include; It lowers the cost incurred in launching a new brand. High costs are incurred in introducing a new brand product into the market, especially if its a completely new brand. A new product introduced under a well-known brand incurs very little cost in advertising, marketing and creating awareness about the product. This is because it already has awareness and recognition built in. Consumers easily accept a known brand. Brand extensions also benefit the parent brand. They achieve this through the creation of a sense of loyalty, sustaining the parent brands relevance in its field and maintaining the promise of the band and the perceptions of the brand.
Treadmills are equipment used for exercising; running or walking, while staying in the same place. They provide a platform with a conveyor belt which uses electric motor to induce motion.
Several factors have to be considered before introducing treadmill brand extension. One of the factors is deciding whether the brand extension will have any impact on the parent brand. The impact might either be direct or indirect, and either could be positive or negative. If the brand extension hurts the parent brands image, then there is no use of it. Another factor that ought to be put into consideration is whether the brand extension fits with the parent brand. Components of fit are four and they include; brand image, usage context, consumer goals and product features and whether the brand image favors a brand extension.
In treadmills brand extension, a company can either employ the horizontal form by introducing related products that can be used along with the main treadmill equipment such as exercise kits, and music or entertainment gadgets. Alternatively, the company can employ the vertical brand extension form by introducing products similar to the core brand, but with different pricing, quality, function, size, behavioral preferences, preferred lifestyle etc.
Rationale for developing successful treadmill brand extension
With the growing population of people who want to keep fit and become physically active, control their weight, combat health conditions and diseases, boost their energy and emotional lift, the demand for treadmills and related exercise products is consistently increasing. A company should frequently conduct research on the increasingly changing needs and preferences of their consumers in order to not only maintain the clientele but also expand the market. Providing new and innovative products is paramount for the company to maintain their competitive position and market share.
In conducting the research, the treadmill company should analyze the market competition, purchase decision making processes of the customers, brand perceptions and extension potential and the demographic data of the current and potential customer base..
Implementing the research findings
From the research findings, the treadmill company will determine the competitors market strategies, levels and position in terms of quality, pricing, preferences and marketing scale. This would give a wide range of opportunities and possibilities to which would help in making informed decisions. For example, if the competitors are targeting low income clients, the company would opt to improve the quality of the equipment and services to fit the preferences and lifestyle of high end consumers.
Alisson cressey Brand Extension vs Brand Stretch: The Good, the Bad, and the Rules 27 september http://www.brandingmagazine.com/2012/09/27/brand-extension-brand-stretch/Daniel Edelman How To Successfully Extend Your Brand July 8, 2003 http://www.marketingprofs.com/3/edelman1.aspNancy Wulz successful brand extension http://www.slideshare.net/NancyWulz/successful-brand-extensionParham Santana Extendonomics: 10 Ways to Extend Your Brand http://www.parhamsantana.com/images/uploads/whitepapers/ParhamSantana_10_Ways_to_Extend_Your_Brand.pdfTina Vukasovic Launching of A New Product with The Brand Extension
Strategy http://issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_039.pdfSusan Gunelius Brand Extension Principles Part 1: What Is a Brand Extension and Why Extend a Brand? https://aytm.com/blog/research-junction/brand-extension-principles-part-1/
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