Key factors for successful brand extension strategies

Brand Extension Considerations There are many factors to consider in completing brand extensions using an existing products' name. The intent of this paper is to provide insights into the factors that companies have found to be the most successful. According to the Marketing Leadership Council (2005) factors that define the most successful brand extensions establish a strong connection to the parent brand by extending its perceived benefits and values to customers, with the second factor being the creation of new opportunities for up- selling and cross-selling the exiting brand, and the third most effective factor being the infusion of new publicity into the older parent brands' identity. The first factor, extending the existing brands' perceived benefits and values to customers, acts to extend the life of the previous brand and further the main products' lifecycle. An example of this is the use of product line extensions in Consumer Packaged Goods (CPG), and specifically in the Coca-Cola family of products, where diet, caffeine-free and now high- energy drink product line extensions are further creating a stronger core brand of Coca-Cola itself. The use of product line extensions in the auto industry is also commonplace, with Toyota extending the product lifecycle of the Camry by creating the Solara edition (convertible) and the Hybrid series of Camry models, both 4 and 6 cylinders. The second major factor of creating additional opportunities for up-selling and cross-selling for the existing brand can be seen in the product line strategies of Dell, Gateway, and Hewlett-Packard. Their use of product line extensions to increase the up-sell and cross-sell of products and services are aimed at extending the product lifecycles of systems that often have limited lifecycles of their own. Cross-selling and up-selling based on product line extensions is prevalent in industries that have rapid product lifecycles. The third major factor to consider in brand extensions according to the Marketing Leadership Council (2005) is the need for infusing the existing brand with additional publicity and greater exposure. The Hummers' product line extensions to the H2 and now the H3 Models underscore both the extreme durability of this vehicle yet also give General Motors an opportunity to further clarify their branding message of the Hummer line of vehicles also being safe for families.