Brand Extension as a Product Development Strategy - Some Reflections

In modem times the main differentiator of any product or service is brand. This is because these days every thing goes in a branded way only. Normally a company chooses to go for four branding strategies like line extension, brand extension, multi brands and new brands under existing and new product categoties. Among this the strategy which calls much of interest in the modem times is brand extension. The main benefit of brand extension is the united communication of a salient image of a product or service. This will produce the differentiation in the minds of the customers, the task which all the marketers are intending to achieve. But we need to analyze whether the brand extensions will damage the image of the present brand, as it is forging the chance to develop a new brand. This article analyses the dimensions of brand extension, the problems which may come up in implementing the strategy and the factors that moderate brand dilution.