A company usually chooses a brand extension strategy in order to face a fluctuant market, economic condition, and brand competition. Brand extension is not a low risk option that firms think it is, however, brand extension weaknesses are: New brand interest is ten folds big rather than brand extension. It is because the market is much more curious to try the new product. Brand extension advertisement just only gets 65% market awareness, it is because the market still keeps the main brand position well.
In extending a brand, a manager can choose one of brand extension strategies, such as Line extension; in this strategy a marketing manager uses his own well-known brand to extend his product line, such as new flavors, color, new size or new packing style. As the example is axe launched its new edition ie V8 edition, after its chocolate flavor. Mitsubishi launched its new Pajero sport. Brand Extension; this strategy also uses strong brand to launce new product or modified product with new categories too. An international retail group such as Unilever usually uses this multi-brand strategy. Multi-brand is a strategy in which a brand is extended into a lot of products categories. This strategy of new brand may take a long time and probably spends a lot of financial capital in the promotion program to build its own brand awareness. It is because this strategy uses a fresh and new product. Now, you know what a brand extension is, hopefully it us useful for all readers. So, later we can use the best strategy to serve our business.