When the original positioning of an existing brand does not allow addressing certain customer segments. Further advantages arise mainly when introducing a new product. In the case of a brand extension. It is not necessary to first invest in brand development. Which is associated with insignificant costs. But the positive image of the existing brand can simply be used. Which saves time and money. The trust that customers place in the brand can also be used for the new product launch. However. It is not only in the phase of launching a new product that costs can be saved through a single versus multi-brand strategy. This is where synergy effects and. In particular.
Communication costs come into play. Which are ultimately Philippines WhatsApp Number List distributed across all products offered under this individual brand. Brand stretching - rules for success In order to make a brand stretching a success and not to be exposed to brand erosion. Several aspects have to be considered: Brand strength: pronounced the emotional awareness and consolidation of the established brand. The easier it is for a new product to be integrated into the structure and identity of the brand. The proximity of the new product to the brand naturally reduces the risk of brand stretching.
Harmonizing brand association: Make sure the brand's associations harmonize with your new product. The brand association should match or be compatible with the expectations of the new product. Audience Match: Target the same audiences. Even if a brand extension enables an expansion of the target group. The new product should always be suitable for the previous target group. This becomes particularly clear when it comes to different price segments. Strong in innovation: Use a sufficient degree of innovation. Especially in a highly profiled competitive environment. A competitive environment with strong. Independent mono-brands makes brand expansion more difficult. A new product can only assert itself through brand extension if it attracts attention with a high degree of innovation.