Sample Essay

The extensions in brands like light, clear, diet, max, less calorie, digestive etc. become the enemy to the original brands, as they unconsciously transfer the massage that the parent brand is incompetent, even though market research and segmentation strategies support the concept of customized the products as per needs of target segments of consumers, but the examples like Pepsi Max and Diet Pepsi share the same target market and resulted in division of customers.

            In conclusion of above it is obvious that brand extension can be a powerful tool if properly planned and launched by keeping all the above mentioned issues in mind, otherwise this strategy will only turns out to be wastage of organization resources ( Kotler & Keller, 2008).. Companies need to focus more on existing brass and to devise the means to improve their performance.

Launching a new brand in the market which is dominated by a single brand is not an easy task, because the leading brand has established the market and created awareness and stay on that point where attack on it is difficult for new entrants. These incumbents also face some problems due to lack of competition as stagnant market, lack of customers growth and innovation. Sometimes they need a competitor to expand the market size and awareness.

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