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Brand Extensions: Pluses & Minuses

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A brand extension is when a firm uses an established brand to introduce a new product. There are two main advantages.

1.They can facilitate new product acceptance

2.They can provide positive feedback to the parent brand and company (Keller & Kotler, 2012, p.264-265)

Example: Promoter Michael Jordan - Product Hanes - Just celebrated 25 years of underwear ads

By Hanes using Michael Jordan to promote its product, a consumers thoughts may be that if it's good enough for Mike then it's good enough for me.

This is a positive brand extension.

On the other hand brand extension can be bad in such a way there could be negative feedback on the company or product. With a reputation such as Mike Tyson in the past this could be exceptionally bad for promotions of products.

Over all at the end of day, success is based on the goal to be achieved and how it (the product) can be promoted for the best profit compare to the quality of the product. How much are you willing to pay for the quality of product?

Solution Preview

The post brings up some good points. Brand extensions can be successful because consumers are more likely to try an item with a recognized name. Brand extensions also offer a way for the parent company to gain positive feedback. However, I was thinking this is more in the case of having more opportunities to make ...

Solution Summary

This solution is in response to a post regarding brand extensions and includes examples to support the response.