What are the challenges of brand extension?

Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/original brand.

Can you give an example of successful or unsuccessful brand stretching?

Dettol stretched from disinfectant to a full range household and personal hygiene brand. Virgin have stretched to everything. There are examples of brands that stretched unsuccessfully and did damage to the core brand. Xerox never stretched successfully from copiers to computers.

What is brand dilution example?

Dilution happens when a company creates a new product that fails. For example, going back to the Microsoft ceiling fan, if Microsoft had created a brand called ‘WindRush’ that focused solely on fans, there would be distance between the parent company (Microsoft) and this new brand/product (WindRush/ceiling fans).

How does Coca-Cola use brand extension?

This brand is best known for its original coke taste, but using brand extension, Coca-Cola has launched a whole new line of various coke products, such as Coke Zero and Cherry Coke flavor. When exploring brand extension, this can also mean completely unrelated product lines compared to the original product.

Why do brand extensions fail?

When brand extensions fail, it’s usually because companies try to borrow or milk their brands, and/or they simply do not pay enough attention to creating sufficient new consumer benefits.

Which of the following are disadvantages of brand extensions?


  • Extending the brand name too far may lead to a loss of reliability, especially if the brand extension happens in an unrelated market.
  • If the new product is not that great, it may spell trouble for the core brand’s image.

Why some brand extensions fail?

What are successful brand extension and failed brand extensions?

Brand extension works when the original and new products share a common quality or characteristic that the consumer can immediately identify. Brand extension fails when the new product is unrelated to the original, is seen as a mismatch, or even creates a negative association.

What is meant by brand extension?

A brand extension is when a company uses one of its established brand names on a new product or new product category. It’s sometimes known as brand stretching. The company relies on the brand loyalty of its current customers, which it hopes will make them more receptive to new offerings from the same brand.

Is Cherry Coke a brand extension?

Is Diet Coke a brand extension or line extension?

A brand extension is when a company uses an existing brand to create a new product category. Coca-Cola line extended its brand by introducing Diet Coke. In 2010, Diet Coke became the second-most popular soft drink in the U.S.— overtaking Pepsi. That’s an example of a very successful line extension.

What are some brand extensions that failed?

We’ve picked six brand extensions that failed, along with potential reasons why. 1. Cosmopolitan yogurt Cosmopolitan, published in 36 languages and distributed in more than 100 countries made the incredulous link between their readership and dairy products.

What is the success of a brand extension?

The success of the extension depends on how far the jump from one product category to the other. If they are close, then they can increase revenue. Too far and the result is brand dilution, or a loss of meaning for the brand. Brand extensions / category extensions should be towards adjacent product categories.

Can strongstrong companies branch out into brand extensions?

Strong companies can branch out into brand extensions. However, these extensions have to make sense. If a company does not have leverage in the category it wants to go into, it will likely fail. Let’s take a look at a few famous brand extension failures.

Are brand fails limited to name brands?

The last branding campaign may have been a little weird, but this gaffe by Médecins Sans Frontières (MSF) shows us that brand fails are not limited to name brands and multimillion dollar Super Bowl ads. Source: https://www.npr.org/sections/goatsandsoda/2020/07/15/864544382/doctors-without-borders-responds-to-charges-of-racism-from-its-staff