Managing Brand Extension.

Support for widespread use of brand extension does not seem to exist but that is not to say that under some conditions, and under the control of management who understand the potential dangers of the practice, the practice might be strategically appropriate. The inherent disadvantages of brand extension, such as spillover risks, mean it should only be used where it might significantly increase the performance of the new product release. This article has attempted to put forward some tentative rules for using and managing the marketing strategy of brand extension. Put very simply the trick seems to be to: • use brand extension only on products which are going into a mature category. If you are in the fortunate position to be able to launch a pioneering product then keep maximum positioning flexibility by using a new brand name; • use brand extension for products which preferably share those features of the original brand which were an important part of the original's differential advantage; • avoid "me too" product launches and try to think of your brand name the same way you would your advertising, that is, it can do wonders to a product with a true differential advantage but no amount of advertising will help a product which does not offer anything new to the customer; • give the same amount of advertising and promotional support as you would a new name product, do not expect the existing brand name to automatically give you high awareness. Maintaining brand equity is about keeping your bond with the customer. Brand extension may have an important part to play in building and maintaining this equity but it does not seem to be the avenue for cheap product launches. Using brand extension properly seems to be about respecting the things that built your brand in the first place, by making sure any brand extensions are quality product releases which are well supported by marketing effort. [ABSTRACT FROM AUTHOR]

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