How do you evaluate the fit between your core brand and a potential extension?

2 Step 2: Assess the brand extension opportunity

The next step is to assess the opportunity and feasibility of the brand extension in terms of the market size, growth, competition, and profitability. You also need to consider the customer needs, preferences, and expectations in the new category or market, and how they align with your core brand associations. For example, Apple successfully extended its brand into the music, phone, and tablet markets, because these categories were compatible with its core brand associations and customer needs.

4 Step 4: Test the brand extension

The final step is to test the brand extension with your target customers and stakeholders, and measure their reactions, perceptions, and attitudes. You can use various methods to test your brand extension, such as prototypes, mock-ups, samples, or simulations. You can also use quantitative or qualitative research techniques, such as surveys, experiments, interviews, or focus groups, to collect feedback and insights. The main objectives of testing your brand extension are to evaluate its appeal, relevance, credibility, and differentiation, and to identify any potential risks, challenges, or opportunities for improvement.

Brand extension can be a powerful way to grow your business and enhance your brand equity, but it also requires careful planning and evaluation. By following these four steps, you can increase the chances of creating a successful brand extension that is a good fit for your core brand and your target customers.