Question

A brand portfolio is the set of all brands and brand lines an organisation offers for sale in a particular category or market segment. Discuss the factors that might influence the decision to use a brand extension as a growth strategy. Consider both the line extension and the category extension.

Please write at least 300 words.

Answer 1

Brand extension is an advertising procedure in which new items are presented in connection to an effective brand. Firms utilize brand expansions to impact customers' image decisions. Brand extension is a piece of the advertising technique to break the section obstructions between item classes through the remainder of a brand's notoriety. A settled brand has a very much characterized brand picture. The upside of brand extension is that it immediately conveys the notable picture of the brand.

purchasers generally assess brand extensions as far as item include likeness and brand idea consistency, be that as it may, the impacts of these two elements change as indicated by the brand-name idea. three brandet-related variables' affecting the achievement of line extension viz., the level of rivalry in the showcase; retailer control; and the assortment looking for conduct of buyers. The outcomes uncovered that line expansions had almost no esteem expansion over existing items, and cannibalization was identified with a line extension's prosperity. Just those line expansions, where new flavors and new bundling/sizes were included demonstrated effective while extensions that enhanced item quality were discovered unsuccessful.

factors:-

1. The higher the apparent notorieties of the parent brand, the more ideal ought to be assessments of the brand expansions.

2. Extensions into classes apparent as more like the classification of the parent brand will probably be acknowledged contrasted with expansions into less comparable item classifications.

3. The higher the apparent hazard related with the expansion classification, the more positive will be assessments of the brand extensions.

4. The higher buyers' creativity, the more positive will be the assessments of expanded brands.

5. firm size and promoting skills additionally have an influence in an extension's prosperity

6. prior line extensions have helped in the brandet development of the parent brand

7. incremental deals created by line extensions may more than adjust for the misfortune in deals because of best cannibalization

brand extension can be classified into two general categories:-

line extensions (when the parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand), and category extensions (when the parent brand enters a different product category from that currently served by the parent brand). At the center of the 1990's for instance, in the United States, most new items were brand expansions (82%), especially line expansion (63%) yet in addition category expansions (18%)