Brand Extension – Definition, Advantages, Success and Failures.

Brand Extension Brand extension is marketing strategy in which a marketer launches a new product with well-developed brand using the same brand name. Brand use this strategy to increase visibility and leverage equity. An existing brand that develops brand extension is known as parent brand. For example, Nike dealt only with shoes but now it has variety of products like watches, caps, jackets and so on. While there can be significant benefits in brand extension with significant failures in brand extension. With every advantage there is disadvantage. The advantages of brand extension: 1.    It increases brand image. 2.    Cost of developing new brand is reduced. 3.   ...

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