How to Implement a Brand Extension Strategy in Your Ecommerce Business

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Many companies launch with a flagship product. But over time, these flagship products can reach market saturation—at which point tried-and-true marketing strategies may start to yield diminishing returns. If you find yourself in this position and are searching for new avenues for growth, a brand extension might be the solution.

A brand extension involves launching products in new categories—think shoe brand Allbirds adding apparel to its offerings. This strategy drives new revenue streams thanks, in part, to recognition and credibility among existing customers.

What is brand extension?

Brand extension, or brand stretching, is when a company leverages its established brand name to launch a new product or service in a different but related category. The brand’s established image helps it sell the new products to current customers, and the new products allow the brand to enter new markets and appeal to different customer segments. Brand extensions capitalize on consumers’ trust in your core brand, allowing you to increase sales and market share. But extensions need to make sense to customers — meaning they need to have an obvious connection to the flagship product you’re known for. Here are some examples of brand extensions that align—and don’t align—with a company’s prior offerings.

  • Product line extension
  • Complementary product extension
  • Brand lifestyle extension
  • Expertise extension

When extending your brand, communicate to customers how new products fit with what they already know and love about you. Use your marketing channels—email, social, paid ads—to show how these new products offer new ways to serve them. Consider a phased messaging strategy: tease the extension with a “Coming soon” announcement on Instagram, follow with a formal launch on your website, and then integrate your new and existing products into a multimedia marketing campaign. For example, a popular backpack company expanding into messenger bags and baby carriers might show how their brand can grow with customers—from college to career to family life. An effective video marketing campaign could show the same person using their products across different life stages: running across campus, interviewing at corporate offices, and exploring a neighborhood park with their infant. This approach helps customers see how your brand is adapting to their changing needs, making it easier for them to understand (and embrace) your expanded product line.