Case Study on Brand Extension and Brand Stretching.

[casestudy]

The modern business world has long recognized that strong brand elements (logo, color, font) that deliver higher sales and profits (i.e. those that have brand equity) have the potential to work their magic on other products.

The two options for doing this are usually called “brand extension” and “brand stretching”.

Brand Extension

Brand extension Brand Equity is the use of a successful brand name to launch a new or modified product in a same market. A successful Brand Loyalty helps a company enter new product categories more easily.

For example: if we talk about Bajaj they actually shifted from scooters to bikes and in the process closed the former business entirely. This was indeed as paradigm shift for them. But they did it really successfully.

Brand Stretching

Brand stretching refers to the use of an established brand name and Brand Management for products in unrelated markets.

For example the move by Yamaha (originally a Japanese manufacturer of motorbikes) into branded hi-fi equipment, pianos and sports equipment.