Brand extension or brand stretching is a strategy in which firm uses an existing brand name is used to introduce a product in a different product category.
Advantages
1. Facilitate new product introduction-
2. Less advertising.
3. Enhance consumer perception.
4. More product variety.
5. Spreads risk.
Limitations
1. Resources divided-.
2. Dilute image-.
3. Confuse positioning.
6 Comments