Despite the disadvantages of line extensions, there are some cases in which it is not economically feasible to create a new brand and in which a line extension might work. Here are some of those:
- Low volume product - if the sales volume is not expected to be high.
- Crowded market - if there is no unique position that the product can occupy.
- Small ad budget - without strong advertising support, it might make sense to use the house name.
- Commodity product - an undifferentiated commodity product has less need of its own name than does a breakthrough product.
- Distribution by sales reps - products distributed through reps may not need a separate brand name. Those sold on store shelves benefit more from their own name.
Sponsored By: Brand Aid
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