Brands having an established position on the market are increasingly using the brand stretching strategy, i.e. introducing new products to the market within the same category. A novelty offered under a well-known brand is more recognizable and faster adopted on the market. What exactly is brand stretching and what are the advantages of this strategy?
What is brand stretching?
Brand stretching consists in expanding the assortment from one product category. Companies are using this growth strategy to increase brand value and expand their customer base. A good example is Coca-Cola which has expanded its range with Coca-Cola Zero, a sugar-free drink, thus reaching a different group of customers. The Nivea brand, best known for its creams, has launched a shower lotion that complements daily care. Consumers receive a new product from a brand they trust, and the company can expand its product portfolio and potentially gain more market share. The strategy is less risky compared to the launch of products from new categories.
Advantages of brand stretching strategy
Despite getting used to a given product, customers can look for a variety. A new product in the portfolio of a trusted brand increases the interest of loyal consumers who want to try new products on the market. Loyal customers positively evaluating the brand, automatically attribute these qualities to the new product. Brand stretching is a frequently used strategy among established brands. By launching a new product within the same category, companies can save on promotional activities, revive the brand, as well as improve its image.
How to promote a new product using the PushAd marketing automation tool?
One of the possibilities of promoting a new product is content marketing – information or press articles are sent to the audience by means of web push notifications. Marketing automation is now an essential part of effective content marketing campaigns. The marketing automation tool gives you the opportunity to establish and maintain relationships with your audience. It’s a great way to introduce your new product and monitor your consumers’ level of interest. The PushAd marketing automation tool allows you to send customised notifications to a selected segment of users – both existing and leads obtained in the lead nurturing process. Active customers are the first to receive information about new products in the offer.
Differences between brand extension and brand stretching
Brand extension is another strategy that aims to introduce new products to the market and reach a different group of consumers. However, the strategy goes a step further, introducing products from a different category than before, e.g. the H&M brand in its portfolio has the H&M Home collection with interior design accessories. Thanks to brand extension, brands have a chance to acquire new customers and occupy another market segment. A brand stretching strategy is considered less risky because it usually promotes a single, complementary product line.