All these examples we have given about specific brand extensions are all different cases. Will they really break through? And if they will, how long will it take? The only thing you can do is speculate, but what we know for a fact from proven cases are some advantages and disadvantages from brand extension.
If a famous brand extends, the acceptance for new products is easier, this is because of the quality the brand has brought to the consumers with their previous products. This is, as Melanie and Laura told before, if there is a need for those new goods. If the market is hot the advantages for the brand are big, it increases the brand image to a higher level, but also the costs of developing a new product will be much lower and production will much more efficient.
If a famous brand extends, the acceptance for new products is easier, this is because of the quality the brand has brought to the consumers with their previous products. This is, as Melanie and Laura told before, if there is a need for those new goods. If the market is hot the advantages for the brand are big, it increases the brand image to a higher level, but also the costs of developing a new product will be much lower and production will much more efficient.
But there are also some possible disadvantages for the brand such as loss of reliability; damage to the image of the core business of the brand and in case of failure the brand would also receive a big hit.
Stephan Cammaert
http://www.managementstudyguide.com/brand-extension.htm
Geen opmerkingen:
Een reactie posten