Brand Management_3 "Marketing Program"

Brand Extensions

Advantages of Brand Extension

• Facilitate new Product acceptance
• Improve brand image
• Reduce risk received by customers
• Increase the probability of gaining distribution and trail
• Increase efficiency of promotional expenditures
• Reduce costs of introductory and follow-up marketing program
• Avoid cost of development a new brand
• Allow for packaging and labeling efficiencies
• Permit consumer variety seeking
• Provide feedback benefits to the Parent Brand and Company
• Clarify brand meaning
• Enhance the parent brand image
• Bring new customers into brand franchise and increase market coverage
• Revitalize the brand
• Permit subsequent extensions

Disadvantages of Brand Extension

• Can confuse or frustrate consumers
• Can encounter retailer resistance
• Can fail and hurt parent brand image
• Can succeed but cannibalize sales of parent brand
• Can succeed but diminish identification with any one category
• Can succeed but hurt the image of parent brand
• Can dilute brand meaning.