Brand Extension

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Introduction: A brand extension is understood to be using the current brand name for another product to enter in a market, brand extension can be described as new product development strategies that can reduce financial risk by using the name of the brand which already existing to enhance the confidence of the consumer. Example connected with brand extensions are Coca Cola, Pepsi, Nestle, P& G, Uniliver, Fine and etc. Successful brand extensions count on consumers perceived fit, Innovation, concept and Consistency, perceived quality, brand familiarity. For many years researchers tried to find the major factor that affects the brand extension of the firms and how it does affect the business. It is studied that brand extensions can result in…show more content…
There are some factors such as maintaining the quality and increasing the advertising costs can make the launch of new product under the same brand name successful .This makes the job more difficult for the marketer as bad advertisement or poor quality of the product can harm the image of the brand . One option is to introduce a completely a new brand name for a new product line, for example when Coca-Cola introduce their new beverages under the name of Fruitopia. Another option is using an existing brand in association with a new brand, known seeing that sub-branding. Any sub-brand, such as Weight Watchers Wise. One of the easy, common and successful ways for internet marketers to increase their portfolios, while reduce cost and the risk of launching the new product . By using the current brand make it easier for the company to make the consumer aware and make consumer associate with the product .In last couple of year brand extension has become very common and successful in market and this was because of its awareness and low risk due to less risk faced by company in order to give quality of product and advertisement. However, this procedure of launching a new product under the same brand name can be expensive, time consuming and obviously not easy to…show more content…
The Role of Corporate Image and Extension Similarity in Service Brand Extension. Maastricht Academic Center for research in Services. Neale, Larry and Baazeem, Thamer and Bougoure, Ursula.(2009).The effect of brand extensions on parent-brand relationship quality. In: Proceedings of Australian and New Zealand Marketing Academy Conference 2009, 30 November - 2 December 2009, Monash University, Melbourne, Victoria. Literature review: 1. Neale ET. Al (2009) the research reveals there can be a negative effect also of using the parent brand name. This can result under different circumstances which can be that product company launched under a parent brand name didn’t do well and result in bad image of the brand . A part from that if image of the brand is not well in the brand then launching a product under that brand name might negatively affect the brand. To evaluate the finding questionnaire were distributed to both male and female and questionnaire has a likert scale from 1 to 7 which was from strongly disagree to strongly agree. 253 respondent answers the questionnaire and it was found out that if brand has a good image in the market then a product which didn’t do well in market will not entirely affect the image of the

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