DISCUSSION QUESTIONS
1. Which aspects should be considered when making a decision on brand extension? How to define values that could be transferred to new versions of product?
Companies adopt the brand extension strategy in order to facilitate the entry into new categories, as build a strong brand is a lengthy and expensive process. So the new product hits the market with the certification of a brand already recognized by the public. In this way while the brand transfers its credibility into the new category which is acting also comes off revitalized by new product.
However, brand extensions or product lines are often not enough to replace the gains made by the original products. But still, companies end up not just extending the brands of their products, but also to themselves in an attempt to leverage its recognition in the category, or the economic exploitation of related categories.
There are four steps that must be followed to make a successful brand extension, and they are,
Determine the value of the current brand, define the categories for the new product and how it will relate to existing products, test the new positioning with consumers and develop and implementation plan. 2. What is the greatest danger when applying brand extension, that is, when using the name of the already established brand for new version of products or for various other products?
Certainly we have to take precautions and we must consider numerous points before the development of the brand extension strategy. The brand cannot be extended without deep reflection of his personality and his vision by the consumers. It is a delicate act, hence the precautions constitute a sound methodology of studies on the potential of the extension. Obviously the greatest danger when applying brand extension is when using the name of the brand for various other products that are