Brand extension strategy involves two forms: horizontal and vertical extensions. The former extends abrand to a different product category, such as Apple computer (iMac) extends to the smartphone category (iPhone) while the latter involves price-based stretches, either higher- or lower, within the same product category. For example, BMW recently stretched down to launch the one series model with lower starting price around $30,000 to access a wide market place. The recent economy recession makes the downward stretch a popular choice to penetrate the market. A recent vertical extension include Apple's introduction of iPad mini lowering starting price from $499 to $329.
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