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Essay / Successful Brand Extensions - 926
IntroductionBrand extension refers to the successful use of an already successful brand name to launch a modified or new product into a new market or niche. Brand management is a key element of product strategy in any given company, especially those operating in highly competitive markets. Brands cannot be developed in isolation, as they are normally classified within a product group or range of commercial products. When it comes to a product line, its breadth can be measured by the number of product lines a company offers. Indeed, a product line is the total set of brands marketed by a company; therefore, it contains several product lines. Consider the following brands and discuss brand extensibility. Brand extension refers to a marketing strategy in which a company that markets a product with a strong image uses the same brand name in a different brand category. It is also called brand stretching because organizations use it as a strategy to leverage and increase the brand equity of the organization. This helps in increasing brand awareness and at the same time increases the profitability of the organization through offerings in multiple product categories. Brand extension depends entirely on the strength of consumers' associations with the brand's goals and even values. Harley-DavidsonFounded in 1905, the Harley-Davidson Motor Company was the only motorcycle manufacturer in the United States after the closure of Indian Motorcycles in 1953. "Motorcycle culture" developed between the 1950s and 1960s. This was influenced by films such as "Wild Ones" and "Easy Rider", which helped to assimilate the Harley -Davidson to the lifestyle of an outlaw motorcyclist perceived as...... middle of paper..... .not popular with the masses, as the product is often considered an Australian product by excellence.SummaryIn the early 1990s, many new products used brand extension to create sales and introduce new brands to the market. Brand extension helps alleviate budgetary constraints and costs associated with launching a new product. Indeed, launching a new product not only requires a large budget, but also takes time. Brand extension plays a key role in creating awareness and promoting product benefits. It helps reduce financial risk by using an established parent name to improve consumer brand perception due to brand equity. This article has looked at a number of brands and their successes and failures in terms of brand extensibility. These brands include Harley-Davidson, Red Bull, Tommy Hilfiger, Victoria's Secret and Vegemite..