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extensions
1
Brand Extensions: How does a firm
grow?
A firm can:
– Focus on current products and markets
Market penetration strategy
– Put existing products into new markets
Market development strategy
– Put new products into existing markets
Product development strategy
– Put new products into new markets
Diversification strategy
4
Some Terminology
5
Categories of Brand Extensions
Line extension
– Parent brand is used to brand a new product that
targets a new market segment within a product
category currently served by the parent brand
H&S dry scalp shampoo
Category extension
– Parent brand is used to enter a different product
category from that currently served by the parent brand
Swiss army watches, Porsche bicycles
6
Tauber’s strategies for category
extensions
9
Advantages of Extensions
10
Advantages of Extensions
11
Disadvantages of Extensions
13
When are Brand Extensions
Appropriate?
14
Model of Extension Evaluations
15