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Title: When Launching A New Product, It Is Better To Pursue A Brand Extension Strategy, Than To Develop A New Brand

Essay Details

Subject: Business
Author: Tanya M
Date: October 3, 2015
Level: University
Grade: A
Length: 4 / 915
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

The first one is “line extension”, which means to launch a new product which is under the same product category as the parent brand. It usually involves more flavours or different sizes. For example, Coca-cola and Coca-cherry-cola. The other type is “category extensions” which means to launch a product in a totally different market to the parent brand, such as Yamaha which extends its product from musical instruments to bikes...

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Brand extension has become more and more popular these days, and has used by many organisations. According to Aaker (1991) , there are almost 9 out of 10 of new product introductions are actually brand extension. There are some obvious advantages of brand extension which are to reduce costs and increase the efficiency of promotional expenditures...

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