Product Extension and branding
Many businesses use an existing brand for a new product to save time and money. Product extensions are new products or services introduced under an established brand name either in the same (line extension) or a new (brand extension) product category.
1. Line Extension
An established brand name is used to enter a new market segment in the same product class. A new variation of a product or service sharing the same essential characteristics as the parent, but offering a new benefit, such as flavor, size, package type, etc.
2. Brand Extension
An established brand name is used to enter a completely different productclass. A new product or service that is related to an existing brand, but that offers a different benefit and/or appeals to a different target segment.
The above two terms are used often in ambiguous ways. For example, sometimes a brand extension is defined as a product line extension marketed under the same general brand as a previous item or items in the same line. To distinguish the brand extension from the other item(s) under the primary brand, one can either add a secondary brand identification or
add a generic. Thus, an Epson FX‐85 printer is an extension of Epson that used the secondary brand of FX‐85, while Jello Instant Pudding is an extension of the Jello brand that uses a generic term. A brand extension is usually aimed at another segment of the general market for the overall brand. Other examples of such brand names include Microsoft XP and Microsoft Office in personal computing software and Heinz Tomato Ketchup and Heinz Pet Foods.
From a trademark perspective, using a secondary brand identification may have cost implications if the extension is treated as a new mark or requires a separate trademark registration. Many trademark offices allow variants of a trademark to be included in a single registration, whereas others require a new application for registering it as a new mark when the modification is considered to be significant. Ordinarily, adding a secondary brand identification would be seen by most trademark offices as a modification requiring a new registration covering the secondary brand. So, perhaps, making use of a generic as an additional phrase may be considered if cost considerations are becoming predominant.
On the positive side, a brand extension may symbolize stability and quality, and thereby give credibility to the new product. In short order, you evolve from a single‐product company to a firm that offers a family of related applications. By sending a signal of strength to your competitors, it would make them think twice before competing with either your flagship application or your brand extensions. This would happen particularly if they see that you have a well‐rounded family of brands that is making a splash in the marketplace. On the negative side a brand extension may blur the identity or image of your brand if the extension confuses to wonder as to what the parent brand represents.
Learn more: Parent brand & Sub‐brand
a. Parent Brand
A strong brand that has the capacity to:
(i) stand alone to represent a core product or service;
(ii) support allied products/services by sharing its brand identity, directly or through endorsement.
b. Sub‐Brand
A product or service that has:
(i) a persona and brand values that separate it from the parent brand.
(ii) its own brand identity, which is proprietary and can be trademarked.
For further information, please follow the next contents, explore the world of intellectual property and chances that intellectual property may bring to your enterprise.
