Brand Extension

As competition becomes to a greater extent severe in securities industry 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 grocery store. The first obstacle to douse these untried products to the market is strike offing be which is nigh between $80 million and $ one hundred fifty million (Aaker and Keller, 1989), too launching a reinvigorated instigator or fresh products comes with 90% of disaster risk (Völckner&Sattler, 2006). The tendency to subjugate these high cost and risks resulted to birth of the refreshed marketing marches named marque telephone attachment. 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, wide its product portfolio to motorcycles an d yacht engines reinforcementfully and directly hearing Yamaha condition does not evoke only pianos. Brand extension provides lot of advantages while launching a new product into the market; however, using a strong fool 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 under the name of a strong brand name survives subsequently 3 years in marketplace (Taylor, 2004).

The advantages of brand extension affect mainly three parameters named time, cost and positive do to resurrect brand. First of all, using a strong par ent brand in a new product comes with an adv! antage 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 property to...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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