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Brand extension
 
Introduction:
Brand extension refers to the corporate activity whereby companies introduce new products, new product variants or product improvements by leveraging the brandequity of the existing parent brand. When Starbucks decided to launch its line of  bottled cold coffee called Frappucino (a mixture of coffee, water, milk anddifferent syrups), the logic used was to leverage the very strong equity of theStarbucks brand in gaining wide spread acceptance for the new product line.As such, brand extension is a type of short cut that companies resort to, tominimize risk and maximize their investment in the brand. But more often thannot, brand extensions fail. The simple reason for such failure is that the equity of the parent brand is one of the many factors that impact the success of brandextensions. Much has been researched on the success factors of brand extensions inthe industry and
 
in academia. Knowledge from the collective wisdom of theindustry, best practices of some of the biggest brands and empirical evidence fromresearch is used to present some guidelines on brand extensions to companies.
 
There are several aspects of considering brand extensions:1
 .
 Product line extension without a sub-brand as (Rasna) has various variants.
2.
Extending the brand with sub-brands (junior horlicks)
3.
 Extending the brand to related categories (Liril to Liril talcum powder)
4.
Extending the brand to more related categories (Wipro in computers, finance,edible oil, medical equipments, soaps and baby powder).
 Some examples of successful brand extensions:-
 
•
Horlicks come up with Horlicks junior The credibility of its existing brands, which are positioned as health and energydrinks, acts as an easy launch pad for new products in the foods market. Thecompany has successfully launched a variety of brand extensions of its popular Horlicks brand such as ‘Mother Horlicks’, ‘Junior Horlicks’ and ‘Horlicks Three-in-one’ sachets. SBCH is aiming to grow both organically and inorganically byexploiting existing opportunities supported by its well-established distributionnetwork.
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