Brand Extension Analysis

1. Executive Summary This report critically analyze the concept of brand extension and how customers perceive brand extension. This study also lay emphases on how powerful branding is and the need of brand extension as a useful tool to the marketer for achieving competitive edge in the market place. This report highlights more on the brand extensions applications: the two kinds of extensions that is vertical and horizontal brand extension. In addition, the report also deliberates as well as evaluate the categories and line of brand extension. It also reviews how customers see, think and feel about brand extension. The report explored some benefits of brand extension which include increased mileage for the new product and also

Cases where brand extension is disadvantageous

Dilution of the existing brand image

The strategy of Brand extension marks in product that are new bearing the brand of an already product and in the course of equity brand sharing and thus reducing the brand original image built. This normally occurs if a negative outcome from the product that is new is connected with already brand association. Example is misfortune initiated from a product below the name of brand which more times get the image tarnish and entire brand and product as well. .

Cannibalization

Brand extensions may cannibalize present products below the brand if being located in close contiguity to the product that is current. This usually results in the sales volumes of the new products increasing and the existing product reducing. Certain specialist debates on the fact that the general result is unbiased for the fact that already product isn’t trailing it market share to product competitors. To add up or to add to it this is stressed when there is a lot likely to

Factors to ensure successful brand extension.

The can sometimes be impact that are positive on extension of brands. A brand extension that is successful aids the parent brand in getting loyalty brands. (Chen & Liu, 2004). It came out or was noticed also that value or quality of brand extension and its adequate at the market do not weak the attitude brand by the parent brand. The dominance brand of the parent brand might or may be improved when the brand extension get into a fit that is good.

Some issues that can be ensure for successful brand extension

 Strategic Fit among both extended product brand and extended product

 The parent brand good or quality association.

 The earlier history about the extensions that was formed by the parent brands

 Features of segment product in which there is expansion in parent brand.

 Kinds of data that is drawn-out from parent brand

 Features of that company which brings out the activities of the brand extension.

 Advertisements and Communication of the activities of brand extension.

For a firm to go for extension strategy it must put these 3 factors into consideration.

 After the extension of brand strategy the other brands that come into