Essays on Brand Extension

Brand extension is the use of an established brand name in new product categories. The new category can be related or unrelated to the existing product. The main purpose of brand extension is to leverage the equity of the parent brand to enter new markets and gain market share. There are several benefits of brand extension. First, it can help to enter new markets and gain market share quickly. Second, it can create synergy between the parent brand and the new product. Third, it can help to build brand equity and recall. Fourth, it can increase the perceived value of the new product. Fifth, it can provide economies of scale in production and marketing. There are also some risks associated with brand extension. First, the new product may not be perceived as being consistent with the parent brand. Second, the new product may not be able to live up to the expectations of the customers. Third, the new product may not be able to compete effectively against other products in the market. Fourth, the brand extension may dilute the parent brand. Fifth, the brand extension may confuse customers and cause them to switch to another brand. Thus, brand extension can be a powerful tool to enter new markets and gain market share. However, it is important to carefully consider the risks before embarking on a brand extension strategy.