Brand Extensions: Pluses & Minuses
Reply to the following:
A brand extension is when a firm uses an established brand
to introduce a new product. There are two main advantages.
1.They can facilitate new product acceptance
2.They can provide positive feedback to the parent brand and
company (Keller & Kotler, 2012, p.264-265)
Example: Promoter Michael Jordan – Product Hanes – Just
celebrated 25 years of underwear ads
By Hanes using Michael Jordan to promote its product, a
consumers thoughts may be that if it’s good enough for Mike then it’s good
enough for me.
This is a positive brand extension.
On the other hand brand extension can be bad in such a way
there could be negative feedback on the company or product. With a reputation
such as Mike Tyson in the past this could be exceptionally bad for promotions
of products.
Over all at the end of day, success is based on the goal to
be achieved and how it (the product) can be promoted for the best profit
compare to the quality of the product. How much are you willing to pay for the
quality of product?
