Brand stretching

Brand stretching is the process of using an existing brand name for new products or
services that may not seem related. This practice is used by many well- known brand such as
Coca- Cola, H&M or Tchibo. Companies use this strategy to increase brand equity and
expand their customers base. Consumers receive new product from the brand that they
already trust, and the company can enxtend their product range and potentially gain more
market share.
The new product in the offer of trusted brand increases the interest of loyal
consumers who want to try news on the market. Loyal customers who positively evaluate
the brand, automatically transfer the good features to the new product. Brand stretching is
usually used strategy among the brands who have establish position in the market. By using
this strategy companies can save on advertising campaigns and improve brand image.
Brand stretching allows the brand appears in the market in a new category in a short
time, and consumers, seeing a well-known logo on a new product, are more likely to reach
for it than for a completely new product of an unknown brand. But brand stretching is
effective only when both product categories match each other in terms of positioning. If the
new product is not successful, it may endanger the original brand. The category that the
company want to enter must be well thought and must match the general association with
this brand. For example gum manufacturer Orbit entered the production of refreshing
candies and that was really good step because customers who already know their main
product likely reached for its related category
increase brand equity- zwiększyć wartość marki
expand customers base- zwiększyć baze klientów
receive- otrzymywać
extend- rozszerzyć
gain market share- zwiększyć udział w rynku
trusted brand- zaufana marka
news on the market- nowości na rynku
evaluate- oceniać
features- cechy
associate with- kojarzyć z
well established in the market- dobrze ustanowiona na rynku