INTRODUCTION

LINE EXTENSION
Eg, Lays, it comes in different flavors and the packaging differs in colors.
This is the same strategy that are used by Soft Drinks companies too.
CATEGORY EXTENSION
Eg, Colgate extended their brand by manufacturing toothbrushes to complement
their own toothpaste.

ADVANTAGES
 IMPROVE THE BRAND IMAGE
These inferences increase the strength, favourability, and uniqueness of
the extension’s brand associations. Eg : when sony first introduced Sony
Xperia consumers may have been more likely to feel comfortable with its
anticipated performance because of their experience with and knowledge
of other Sony products than if Sony had branded it as something
completely new.
 REDUCE RISK PERCEIVED BY CUSTOMERS
The most important factor for predicting initial trial of a new product
was, the extent to which it connected to a known family brand.
Extensions from well-known brands like MOTOROLA creates
trustworthiness, even if it lacks product meaning among consumers, it
stands out due to quality of the product in minds of consumers by
reducing perceived risk.
 Avoid Cost of Developing a New Brand
As the number of available and appealing brand names keeps shrinking,
legal conflicts grow more likely. a global trademark search is a must for
any major new brand launch or rebranding, and it can cost millions of
dollars.
 ALLOW CONSUMER VARIETY SEEKING
A complement of line extensions can also encourage customers to use the
brand to a greater extent or in different ways. Even to compete effectively
in some categories, marketers need to have multiple items that together
form a cohesive product line. Eg: LOREAL , it concentrates on beauty
and personal care. It’s a global power house with its extensive brand
portfolio. It has sophisticated cosmetics at affordable prices and
professional products are sold at hair salons and consumer brand products
 at retail stores like Maybelline and Garnier. This company offers
something for everyone.

 ENHANCE THE PARENT BRAND IMAGE

It improves the favourability of an existing brand association and it adds
new brand associations and combines both. The brand extension helps in
clarifying its core brand value associations which affects the parent brand
image. For eg, NIKE, Nike has expanded from running shoes to other
athletic shoes, athletic clothing, and athletic equipment, strengthening
its associations to “peak performance” and “sports” in the process.

 INCREASE EFFICIENCY OF PROMOTIONAL EXPENDITURE

On of the main advantage of introducing the new product is that the
introductory campaign does not have to create awareness of both the
brands and the new products but instead it can concentrate only on the
new product.

 ALLOW FOR PACKAGING AND LABELLING EFFICIENCIES

For eg, McCain food products or Coco Cola offers a variety of products
with identical packaging that increases their visibility and they are
stocked together in the freezer.
 REDUCE COST OF INTRODUCTIVE & FOLLOW UP
MARKETING PROGRAMS
For example, when a brand becomes associated with multiple products,
advertising can be more cost-effective for the family brand as a whole.
Like, CADBURY, they pushed their subbrand Diary milk into the market
with their effective advertising strategy, like brand elements like their
themes and associations were very strong and appealing to customers, So
by this they were able to create strong brand associations and increase
their overall margins.
 INCREASE THE PROBABILITY OF GAINING DISTRIBUTION
AND TRAIL
Brand reputation is a key screening criteria of gate keepers for making
new product decisions at super markets.