Are brand extensions an important brand-growth strategy or can they endanger brands? Perhaps start with a definition of brand extensions?© BrainMass Inc. brainmass.com October 16, 2018, 6:41 pm ad1c9bdddf
The concept of a "Brand Extension" is a sort of "cheating" mechanism where marketers seek to use a very well known brand name on a new product that might only be tangentially related to the original. As a result, several things can happen: First, the new product may sell rapidly, and with less investment in marketing (than would be the case in a totally new product). This is the desire. The second thing that might occur is that the new product might "dilute" the meaning of the first, creating less connection between the two products, as well as harming the recognition of the established primary name (Loken and John, 1993).
The main issue then becomes how "close" the new brand is relative to the old one. In a well known example, a famous soap maker ...
The expert determines why brand extensions are important brand-growth strategies.
Components of a successful brand extension strategy
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.View Full Posting Details