After we've been studying the popular concept of brand extension, it's time to make a few conclusions. There are several forms of brand extension and not every company is predestined to produce a successful extension. According to the article, the company has to answer two questions, before starting to think about applying the concept.
The first question is about making sure that the companies specific brand equity can be extended to others sectors in the market. One thing we can notice here, is the fact that in brand extending, a company cannot diversify and be successful in too many sectors at the same time.
The second question deals with the most crucial thing in bussiness: is there money to make with this concept in our company? Some companies think: the more different extensions we produce, the more money we can earn. However, in most cases, specialisation is very appreciated by customers.
There's one point I'm very sure of: the success of a brand extension has a lot to do with the name and reputation of the company. Finally, brand extension should all be about maximising the advantages for customers, the company and its stakeholders.
Laura Christiaens
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