As all other marketing strategies, this growth strategy carries also a great risk. If not properly planned and evaluated, brand extensions can easily drag a strong brand image pummeling down to the ground. To avoid such adverse effects, the following elements of an effective brand extension may be considered by companies:
1. Related or Complementary Products.Venturing into a new product line that is closely related to the original brand product can give a strong product and brand recognition from consumers. In this way, instant loyal buyers can be achieved as they can easily associate such new products to the original strong brand. For example, a toothpaste-producing company may similarly venture into producing toothbrushes.
2. Good Quality.Consumers give value to the quality of the products as part of their buying decision. It is prudent that the new product line also provide the same excellent quality as given by its original brand product. It is important then that the new product line meet or better yet, exceed the expectations of the clients.
3. Innovative.It is not enough that brand extensions simply rely on the strong brand image of the original product. It is likewise important that the new product line provide a great experience or something new that will make clients be interested in trying out and choosing your company’s product against established and existing competitors.
4. Memorable Brand Tagline.Creating a brand tagline for the original and brand extensions can make consumers associate easily all your products to the strong brand image. Nike’s “Just Do It” is simple but memorable and it promotes harmony in all its product lines, may it be shoes, clothing, sporting goods and apparel, buyers are given a sense of triumph, success and achievement.
It is noteworthy that brand extensions are considered by clients as one with the original brand, hence; they should complement and support the original brand, rather than cause inconsistencies, incompatibilities, and possibly confusion among the buyers.