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.
The Blake Project Can Help: The Brand Licensing Audit
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education
