文档介绍：标题:
Understanding brand equity for essful brand extension
原文:
Brand extension could create synergy
essful examples such as Diet Pepsi and Diet Coke benefited from the brand franchise of their parent products. Arguably, further advertising the extension might even create synergy between it and its parent brand. In fact, after initially resisting brand extension, Coca-Cola introduced six extensions and captured a larger market share than the original brand. As an extreme example, one of the extensions, Cherry Coke, was essful despite a near absence of advertising support. Recent history shows that more than half of the new brands marketed during the 1980s were extensions of existing products, marketed under existing brand names. As a result, there is even more pressure toward brand extension. While essful product extension can reap benefits, management should not forget the risk of extension failure.
Potential problems
History shows the potential of brand extension problems which range from outright failure to partial failures such as brand cannibalism. Instead of ess, the failed extension might tarnish the image and reduce the market share of the parent product. Extensions such as the Cadillac Cimarron serve as examples of the price of a mistake. While the Cimarron was not actually a failure it did cast a shadow on the core product. The model was popular in a market segment which could not afford luxury sized Cadillacs. Owners of luxury sized models lost their sense of the car′s exclusivity. Consumers seemed to think that if anyone who could afford a Chevrolet could afford a Cadillac, a full sized Cadillac seemed to be worth less. The lesson taught by the Cimarron example is that it is important to know what consumers think of the core product and what they will think of the extension. Other failed extensions warn of potential problems and dissipation of corporate family fortunes. Still, the lure of brand extension benefits continues to attract attention.
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