Mktg600 | Marketing homework help



This week we are exploring brand extensions and if they are an important brand-growth strategy or if they endanger established brands. A brand extension is where a company attempts to expand into another market by introducing new products using the established brand name. There are many benefits to employing this growth strategy such as increased marketing and production efficiency. As a brand has continuous marketing exposure, they can tap into existing marketing services, platforms, and marketing experts the brand currently employees to launch new products. This same concept of using existing brand assets can be used towards maximizing efficiencies between producing multiple product lines depending upon how similar the products are to manufacture. For example, if a company only makes computer processors it would be very easy for them to take advantage of their existing infrastructure and produce brand extensions such as RAM or motherboards for computers. 

            While brand extensions have many benefits, they also have some inherent risks. If a company attempts a brand extension and uses an inferior material, design, or concept then it could damage the brand. Attempting to enter a market space which is not supported by a brands expertise could be equally damaging to the brand. This can tarnish the brand’s image and not only diminish future attempts at brand extensions but maintaining current market share and the credible products that the company does produce. One example of a failed brand extension is when lifesavers attempted to make a beverage. The beverage performed well during taste testing but too many consumers believed it would taste like drinking candy which led to dismal performance in the market (Taylor, 2021). In conclusion brand extensions have great potential for growth if executed well but can damage a brand if not well developed and executed. 


Contributor, C. (2020, September 21). Line Extension vs. Brand Extension. Small Business – 

Kotler, P., & Keller, K. (2014). Marketing management (14th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall

Taylor, D. (2021, January 7). The brand stretch graveyard: 8 bad and mad extensions. brandgym.


Brand extensions are an important brand-growth strategy, but at the same time can endanger brands. Brand extension, by definition, is a strategy created to launch a product into the market under an already established name (Tow, 2019). This type of strategy allows for the product to enter the market under a pre-established brand and help with awareness for the product. I would consider it a double edged sword and although brand extension can help make or break a company, a company could make or break without an extension. Therefore, the two are not necessarily mutually exclusive, but can play a part in the role of the other.

One example of a successful brand extension is with Apple. If you recall, Apple did not start out as the company it is now. It has taken many years of growth and expansion to become the successful company and brand it is now. For example, Apple had computers but expanded out to selling more products and services such as cell phones such as iPhones, iPods, iPads, and so much more (Frank, 2019). There is no way to determine if or how successful or unsuccessful Apple would have been if they had not expanded. It is obvious that the brand extension contributed to creating the company it is today since over 60% of Apples sales come from their iPhone (Frank, 2019).

Unfortunately, not all stories are as successful. For example, Colgate is mostly known for being a toothpaste brand, but that was not always the strategy. Did you know that Colgate actually attempted to expand out to the food industry and created what was called ‘Colgate Beef Lasagna’ (Tow, 2019). While the reviews weren’t awful, the idea of a toothpaste company specializing in food products did not sit well and therefore was not a successful brand extension strategy or execution. Luckily, Colgate was able to recover and is still a successful company, but again, some companies aren’t able to recover.




Frank, C. (2019, July 15). Brand Extension Examples [Review of Brand Extension Examples]. Brand Marketing Blog.

Tow, H. (2019, April 4). Brand Extension 101: The Good, Bad, and Hilarious.

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