Brand Extension

As competition becomes much 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 market. The first obstacle to ground these untried products to the market is strike offing be which is virtually between $80 million and $cl million (Aaker and Keller, 1989), withal launching a reinvigorated instigator or raw products comes with 90% of disaster risk (Völckner&Sattler, 2006). The tendency to vacate these high cost and risks resulted to birth of the overbold marketing terminal named marque telephone annexe. 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 engines conquestfully an d directly hearing Yamaha parole does not evoke only pianos. Brand extension provides dissever of reinforcements while launching a new product into the market; however, using a strong smirch 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 downstairs the name of a strong brand name survives after(prenominal) 3 years in marketplace (Taylor, 2004).

The advantages of brand extension affect mainly three parameters named time, cost and positive effects to erect brand. First 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 notes to...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper