Strong brand equity makes possible a successful brand extension strategy. Please describe the components of a successful brand extension strategy. Also include in your response an example of a brand that had a successful brand extension and one that was unsuccessful. Explain why these brand extensions succeeded and failed, respectively.
The component of a successful brand extension strategy includes owning some type of distinguishing property, an idea or asset that sets it apart from its competitors. The strategy may not be unique, but the way it is communicated is exceptional. The presentation of the property has to appeal to a mass segment looking for just that type of product, for it to garner a market share for its distinctiveness. The consumers have to be given a reason to prefer one product over another.
According to Sundar and Probha (2012), a brand extension can fail based on the:
- Characteristics of extension product, the quality and uniqueness of the extended products leads to success, and,
- Relationship between parent brand and ...
The components of a successful brand extension strategies are examined. Why brand extensions succeeded and failed, respectively is explained.