Why do Brand Extension Strategies Fail? - Literature review Example

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Why do Brand Extension Strategies Fail?

The strategy of brand extension is being used by the organisations in order to cope up with different challenging situations and overcome the competitive pressure in the industry. According to the Han (1998), the brand extension of strategy have been beneficial for the companies in the process of reaping additional benefits from the already established brand. The main reason or rationale behind the introduction of new product under the name of well known and established brand is to make sure that the customers and market is familiar with the brand and the new product category can capture market on the basis of the positive and main characteristics of the parent brand (Buil, Chernatony, and Hem, 2009). Different options available to the brand managers in the process of brand extension are: 1. Horizontal Extension: the horizontal extension is further divided into line extension and category extension. In the line extension a whole new product, within the same category as that of the parent brand, is introduced in order to target and capture a new and different segment of the market. On the other hand, in the category extension the same brand is extended into a whole new product category. ...
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Different strategies and techniques are being used by the organisations in order to manage the brands and increase the brand value and worth (Mzungu, Merrilees, and Miller, 2010)…
Author : teresa25

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