Principles of Brand Extension and its Rationales Essay

Principles of Brand Extension and its Rationales - Essay Example A brand’s name has been identified as a polo shirt together with the ways of how to create its extension and the reasons why creating such. In the economic industry, different strategies are to be considered so that producers will get the attention of the consumers. With every product that producers will provide, a brand name has to be added. A group of ideas on the certain product is what a brand is (Ferree, 2007). Addition to that, according to Webben (as cited in Keller, 2003), brand is defined as products which has a goal to satisfy the consumer’s needs by getting their attention on to it providing them with instructions and the product’s use. After succeeding in the familiarity of the product to the different people, a good strategy should be followed and there comes the brand extension. Brand extension as what Sattler, Volckner, Riediger, & Ringle (2009) defined is a strategy wherein the name of a certain product is being used for people’s familiarit y to introduce a new product. This strategy can help the product to increase its demand in the market. Polo Shirt as the Product Considering Polo shirt as the parent of the brand extension, it has several possible outcomes such as body towel, underwear and socks. To come up with a successful brand extension, principles are to be considered. ... Of course, if the producer has already earned his consumer’s trust, it is better if they could provide what the consumer need so that they will not be dismayed. The parent should still have the power to control the extended brand for they still have the same name thus, has an effect with each other’s credibility through their consumer’s opinion. Also, confusion with the extended brand with the parent is a big no. Though they are of the same brand, the products are just co-related with each other and so, should not be a cause for the consumer’s frustration and regret when used the wrong product. If the parent is more of cloth category just like the polo shirt, producers should not create unrelated categories such as soap or food products. Brand extension researchers (n.d) also added that brands should not be extended on different categories for it will affect the product’s name along the competition. Also, the extended brand should add to the parentà ¢â‚¬â„¢s credibility through recognition with new, efficient and successful category for the firm on the future. There should be business attributed upon having brand extension. It is good to think of the possible outcome of the brand extension upon having the developing plan. To engage into a brand extension is a good idea to increase your inputs in the market. Actually, Gelder (as cited in Kapferer, 1997) stated practical reasons why having brand extension such as: the consumers will experience new products and at the same time, the company will be updated thus, will actively participate on having new innovations as part of its development; Through brand extension, the consumer who used to have a trusted brand will choose it rather trying another one thus, making the product reach