Pros And Cons Of Brand Extension

Talking about rare pieces of works, what entering right into our minds is to preserve it. In a business world, we also decide to preserve our position to strengthen our images. For some entrepreneurs, the word ‘Brand Extension’ might mean ‘devalue’ because this action brings about some consequences that lead to change the brand positioning according to several cases that have been failed with brand extension. For instance, in 1999, the famous women magazine named Cosmopolitan has launched the new product that really contrast with what they actually do, The Cosmopolitan yogurt. Sounds awkward? But if we embrace to clearly see both pros and cons of brand extension, we will see that there are more advantages than disadvantages. Videlicet, it enhances the profit, market share, and image of the parent brand.

In order to create a successful brand extension, we have to heuristically decide how to raise the sale of our business and put the right strategies in the right time. As an illustration, Marks & Spencer, the retail sale of clothing, has been auspiciously broadened its new goodies and services such as the retail sale of food, furniture, and financial service. After extended, Marks & Spencer found out that the Financial services now account for 18 percent of the group 's total operating profit. Withal, plenty people still believe that brand extension leads a business to a failure. It is not about the brand extension but it is about how we understand and manage