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Starting a Business

Brand Extension as a Business Tool for Startups

With so many young entrepreneurs and with so many new products in the market, the business world has become a dangerous mud swamp, swallowing those who lose to the competition. So what strategy should new enterprises adopt in order to leverage customers? There are studies showing a strong positive correlation between the brand appearance and the customer evaluations. This article talks about brand extension as an efficient business model that helps start-ups survive the rough terrain.

Brand extension refers to using an already established brand name or trademark for new products, in order to increase sales. Consumers who trust the min brand, tend to buy any product associated with it, and do not pose doubts regarding the quality. Start-ups can use this factor as a safety umbrella to sell their products, which offer them the necessary initial momentum to grab eyes without having to spend heavily on promotional campaigns and marketing. These market giants don’t face much pressure in the market as they already have a great entry point into the competitive atmosphere, and generate sustainable results.

However, sub-branding may not be as easy as it sounds. The most important reason being, the quality of the product should meet the needs and expectations of the consumers. If they do really match the other successful products or services of the main brand, this new feat may bring in great business for both the start-up and the giant. A successful sub-brand can immensely help advertise and add exposure to the parent brand also strengthen brand loyalty and trust. Also, it increases the product range and the product mix, which brings in a larger market share and creates a larger brand image.

Businesses need to keep in mind a few points before venturing into this new sphere. Launching a sub-brand should align naturally with the parent brand without fail and is also a key factor in ensuring business success. An idea isn’t enough to produce results; you have to figure out ways to turn that idea into a profitable product, keeping in mind the needs of the people and the market demand. The founders should have monetization strategy in place, from the very start. The new product line should instill a sense of familiarity by incorporating all the brand characteristics into the new products.

The future seems to be bright and shining for sub-brands and extensions as there are plenty of established brands willing to give out a helping hand.

At the end of the day people care about what is being delivered to them, but brand identity is what embeds it into their memories.

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Erin Thompson

Erin Thompson spent years managing her own blog about budgeting and debt. Because of that, she has great insights not only about managing spending and borrowing but also about running websites profitably. When she's not writing articles for us, she's traveling and looking for new types of wines to try.
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The content on is for informational and educational purposes only. It is not financial advice and we are not certified financial advisors. strives to keep its information accurate and up to date, but it may differ from actual numbers. We may have financial relationships with companies listed on our site. We may receive compensation for the placement of sponsored products or services. We work hard to write authentic and accurate articles.