Brand Extension

In present era, companies can access new markets through an existing brand, known to reduce both the cost of the introduction of new products and the risk of product failure. Company makes extension our brand that is popular in market and in the mind of customer and also have positive image. Brand extension strategy not suitable for all the brands it has both negative and positive impact. it may negatively affect the image of parent brand. Developing new brand requires much more investment than creating brand extension so, due to this reason firms use brand extension strategy to enter new markets. brand extension is an instance of using and established brand name or trade mark on new products the main purpose is increase sales. A brand extension strategy involves using an established brand in a class of product to give a different product category. Mostly companies of these days use brand extension use its current name with different product. Brand is the asset of the company. And companies want to more cash its good name and customer loyalty with current brand name.