Anyone who lives on planet Earth understands the difference between brand name and generic. Let’s face it. Even children understand this factor; kids get teased in school over generic clothing. Brand names serve as a means of identification in this country. And that is why companies strive for their brand expansion, as they know that the name of product and company serves as top priory in most households.
No matter the income level, to some degree, people will buy the brand name if they doubt that the generic will be ½ as good as the brand name product. Brand expansion serves as the transportation for these companies to promote their individual successes as a product, serving the needs of the customers better than the generic products on the selves.
When it comes to brand expansion there are many ways that existing products can increase this field. For a strong brand name brand expansion is the medium for extended the products by adding a new or slightly changed product within that company using the same name This serves as a great form of brand expansion as it helps drive new customers by introducing a different type of product but using the same “name” to recruit these clients. It also helps to reinvent and reinvest in the long-term customer who desires a new adventure within the same comfortable market. Extending brands is used when introducing products such as shoes, accessories, home decorations, luggage, furniture, hotels, perfumes, clothing lines, picture frames, holiday cards, food products and much more.
Another great move that companies have made in brand exposure is using multi-brand to increase sales for their companies. Because there are so many “brands” out in the market, the marketing teams have determined that an easy way to produce more income and attract more clients is to multi-brand for brand expansion. This is done by companies actually having a new brand on the market that competes with its own existing brand of well known identity to the public. What does this multi-brand do for the company and the market as a whole? It keeps the customer from buying the “cheap” brand but still gives money to the company seeking the profits. Doing this is somewhat deceiving of the customers, but is it? The company takes the hit here; they offer a product, sometimes exactly the same as the other product but offer it a lower price. This keeps the customer buying their products instead of the “cheap” guys. Brand expansion done simply and sneaky I would say!
Finally, no matter the means of brand expansion, it serves as a great marketing tool to generate more attention to the company and the products and services they offer the customers.
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