Brand Extension Strategies: Line, Vertical, and More

This study discusses different brand extension strategies, such as line extension and vertical extension, and their impact on brand development and business expansion. It explores how companies can use these strategies to attract customers and increase profit. The study also examines the ways of managing brands collaboratively and in partnership at both domestic and global levels.

Brand Management
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Table of Contents
INTRODUCTION 3
MAIN BODY 3
Different techniques to extend brand 3
CONCLUSION 4
REFERENCES 5
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INTRODUCTION
Brand management can be defined as an activity of supervision of promotion of brand of goods
(Veloutsou and Guzman, 2017). This study will discuss different brand development of
expansion strategies like line, vertical and others.
MAIN BODY
Different techniques to extend brand
A process and an activity of making use of brand name of a company in a different product
category are known as brand extension. Dyson Limited British technology company wants to
develop or extend its brand by making use of different strategies as it manufactures household
appliances like air purifiers, hand dryers and others. One of the main reasons of brand extension
is being in the competition and increasing profit.
Vertical extension: In this vertical extension of brand, companies introduce their products under
same product category as the core brand at different price as well as quality point. For example:
There are same home appliance products available in the market like air purifier and vacuums
but at different prices and qualities (Ahn, Park and Hyun, 2018). This extension is known as
vertical extension. It is mainly being used by thinking out of target market. By doing so and
having same products at different prices and qualities company can attract customers of all
income group as customers can buy products as per their requirements and income.
Line extension: It is the most effective and the most used extension strategy in which companies
can introduce additional products in the same product category as well as same brand name. By
adding different flavours, colours, fragrance, designs and size. For example: Dyson Limited
British technology company can develop air purifiers in different fragrances and other home
appliances in different designs as per the requirements and likes of customers. Different people
have different tastes as some like levanter fragrance, some like rose fragrance, some like round
shapes of products so, for providing them choices of selecting products as per their requirements
and satisfying their needs, company can chose this extension strategy (Allman and et.al., 2016).
So, overall it can be said that by adding new features in an existing products rather than
developing new product, Dyson can increase customers base and profit as well.
Brand extension: In this type of extension strategy under the same brand companies starts to
sell different types of products in order to attract customers. One of the best and effective
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example of this extension strategy is Apple company who used to sell or provide personal
computers and for extension and as per the changing needs of customers it started to sell from
personal computers to MP3 players, Laptop and others.
So, from the above discussed all brand extension strategies it can clearly be said that for Dyson
company line extension strategy will be beneficial as by producing products in different sizes,
fragrances and colours it can attracts customers to the large extent and all age group of people.
Ways of managing brand collaboratively and in partnership at domestic and global level
For business development companies often adopt some ways of brand management either
by collaboration or partnership as it allows them to reduce risks and getting more appropriate and
effective suggestions and ways. One of the best ways of collaboration with other brands at both
domestic and global level, Dyson can ask for sharing mailing list of collaborative or similar
brand. For making it easier Dyson can give an advertise of their products and services if they
have added some features in another’s brand mail campaign and can attract wider range of
customers.
In the type of partnership brand management at both levels, Dyson requires creating a mutual
product as well as making mutual agreement with appropriate brand or company. In this type,
both partner companies help each others to increase brand exposure (Dumlao, 2018).
So, overall it can be said that brand collaboration and partnership can allow Dyson company in
better brand management and also add value, reduce cost by reaching out to new audience.
CONCLUSION
From the above study it has been concluded that line extension and vertical extension
strategies played a vital role for expanding business and brand of an organization and increasing
sales.
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REFERENCES
Books and journal
Ahn, J., Park, J.K. and Hyun, H., 2018. Luxury product to service brand extension and brand
equity transfer. Journal of Retailing and Consumer Services, 42, pp.22-28.
Allman, H.F. and et.al., 2016. Brand image evaluations: The interactive roles of country of
manufacture, brand concept, and vertical line extension type. Journal of International
Marketing, 24(2), pp.40-61.
Veloutsou, C. and Guzman, F., 2017. The evolution of brand management thinking over the last
25 years as recorded in the Journal of Product and Brand Management. Journal of
Product & Brand Management.
Dumlao, R., 2018. A guide to collaborative communication for service-learning and community
engagement partners. Stylus Publishing, LLC.
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