Brand Extension

As competition becomes to a greater extent severe in foodstuff place in last 50 years, innovation becomes more authorised than ever. Scientists, businessmen, entrepreneurs and companies has been inventing vernal products everyday and trying to find a bearing to place these innovative products to securities industry. The first obstacle to open up these untried products to the market is strike offing be which is nearly between $80 million and $ one hundred fifty million (Aaker and Keller, 1989), likewise launching a reinvigorated instigator or novel products comes with 90% of disaster risk (Völckner&Sattler, 2006). The tendency to negate these high cost and risks resulted to birth of the mod marketing bourn named marque telephone wing. Brand extension is a method to launch new products into the market with using cognisable and recognised check off names. As an example, Yamaha, the piano producer, elongate its product portfolio to motorcycles and yacht e ngines succeederfully and directly hearing Yamaha intelligence information does not evoke only pianos. Brand extension provides split of payoffs while launching a new product into the market; however, using a strong instigant name in a new product does not make success certain and includes some risks and disadvantages. Approximately the 50% of new products which was launched nether the name of a strong brand name survives aft(prenominal) 3 years in marketplace (Taylor, 2004).

The advantages of brand extension affect mainly three parameters named time, cost and positive personal effects to elevate brand. Fi rst of all, using a strong parent brand in a! new product comes with an advantage of omission of name and trademark establishment process which costs a great amount of notes and time. According to Aaker and Keller (1989), creating a new brand costs approximately $80 million to $150 million. Beside this new brands consume to work consumer knowledge and trust. Consumer knowledge includes brand awareness and image. The parent brand had already invested in these factors with advertisements and promotions, so there is no need to expense more funds to...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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