Disadvantages Of Brand Extension

Brand extension refers to marketing strategy in which same name of a brand is used in a different product category. In short it is similar to brand stretching. Brand extension helps in evaluating opportunities related top product category, it identifies resource need and it helps organization to increase brand equity. brand extension is successful when customers value and goals match with that of core business and when these goals and value are personified in a brand then the brand is more acceptable by the customers in a business. brand extension is done for some purpose like for growth and development, trend in industry ,Economic Benefits and also for creating competition.

EXAMPLES:

• Haleeb food limited: The first product of the company

ADVANTAGES OF BRAND EXTENSION:

Some of the advantages of brand extension are as follows:

• new product acceptance in a market is easier by brand extension as it reduces the risk which customers thought off regarding new brand

• it helps in increasing the brand image

• New product extension enhance the consumer interest and its willingness to try new product of a similar brand name.

• Promotional cost and marketing cost is reduced

• new product development need cost which is reduced by brand extension

• Varieties of products are available for consumer to make

DISADVANTAGES OF BRAND EXTENSION:

Some of the disadvantages of brand extension are as follows:

• Brand extension which don’t have strength to compete with those of its competitors then it fails

• People may be not aware of the new brand extension this happens when the management regarding new product is not fully done and its marketing ids not done properly because in some cases manager of new brand think that the parent brand name will compensate the spin off brand.

• Brand extension in different market create brand to suffer so for that the organization should need to conduct a research and see that in which product category the extension of a brand will