Brand extension adequate application and its impact on sales performance of companies in Pakistan

Abstract

The past century was marked by the birth of nearly every brand we know and consume today. In the 21st century, on the other hand, brands will multiply their portfolio into different products and services. It is going to be the era of brand extensions! With 80 percent of marketing executives considering brand extension as the most popular means of brand growth and with 50 percent of all brand extensions failing (Brand gym, 2007), this thesis will look into the appropriate use of brand extension. Many marketing professional are using brand extension for the launch of new products in different categories without realizing the risks involved in it. Some of them just emphasize on brand extension and forget the basic functionality of the product where as others ignore the fit and leverage of the new product that is essential for brand extension. There is a thin line between successful and unsuccessful brand extension. This study will describe both aspects of brand extension and will describes means through which brand extension can be made an effective tool for launching new products. It’s quite important to have both the consumer and company’s perspective about brand extension yet in this study I have decided to stick to company’s viewpoint of brand stretching.