Brand Stretching

Posted in Marketing and Strategy Terms, Total Reads: 1703
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Definition: Brand Stretching

Strong brand name which delivers high sales and profits has the potential to work their magic on other product lines as well. This is capitalised by many marketers through “brand extension” and “brand stretching”.


Brand extension is the process of using the successful brand name to launch a completely new product or a modified product in the same product market

Eg. Diet Coke


Brand stretching refers to the process of using established brand names to launch products in an unrelated and different product category


The potential growth for brand stretch depends on how the core product was positioned in customer’s minds. The new product or service has to fit the core brand, or the resulting incongruity will undermine the core brand. Ideally, the new product should increase the brand equity and the profits


Examples

Successful Brand stretching : Yamaha Piano

Failed Brand Stretching : Ponds toothpaste


Advantages of Brand stretching

• New product Launch costs are substantially lower

• Customers will affiliate the original brand name with the quality of the new product

• Awareness on the brand helps in promoting the new product

• Customers perceived risk on the new product will be reduced

• Distribution gets easier


Disadvantage

• Stretching a brand too far will create the original brand distraction.

 

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