Exploring new horizons

First announced in March this year, the pending public release of Apple’s first foray into the financial sector, marks the further divergence of the company from its roots. The Apple Card, set to become available later this month,1 solidifies Apple’s positioning as a lifestyle company rather than a technology one. As businesses grow more successful, innovation through entering new markets backed by the strength of their brand image, known as brand extension, is a common strategy.

How effective are brand extensions in reality?

Generally, consumers are on average 2.4 times more likely to purchase a product that is a brand extension if they were already a customer of the original brand product.2 This effect is even more pronounced for products in complementary and substitutable categories. Crucially, fit between the parent brand and an offshoot are the most important driver of success.3 Without a logical fit, backed by other factors like appropriate marketing support, retailer acceptance, and parent brand conviction, brand extensions are a tougher road to success.

Brand extension success

Dyson is well known for its range of bag-less vacuums; but it has also made efforts to extend the brand in other product categories. Its Supersonic handheld hairdryer saw the firm’s entry into the beauty and style market. Embodying a perfect fit with its parent brand concept, the Supersonic has been received well since its introduction.4 Dyson’s latest endeavour, a hair styler utilising the same cyclone technology, marks a successful extension from its original vacuum cleaners offerings. Despite the gulf of difference between the two categories, the underlying logical compatibility of Dyson’s beauty product line has translated to a highly effective brand extension.

  1. Garun, N. (2019). Source.
  2. Grasby, A., Corsi, A., Dawes, J., Driesener, C. & Sharp, B. (2019). Brand Extensions: Does Buying a Brand in One Category Increase Propensity to Buy It in Another?. SSRN,
  3. Volckner, F. & Sattler, H. (2006). Drivers of brand extension success. (branding strategies). Journal of Marketing, 70(2), 18-34.
  4. Boyton, J. (2019). Source.