initiatives do not succeed and harm the core brand image. Let us list down risks associated with
brand extensions:
Weakens existing brand associations.
Makes undesirable attribute associations.
The new brand fails to deliver the promise.
Unforeseen incidents such as product recall.
Cannibalization may occur.
Despite the consequences of brand extensions, it still continues to be a popular strategy amongst
the marketing professionals. The extension must always be cautiously assessed to avoid any
negative impact on the brand equity of the core brand.
Co-Branding
This approach consists of two established brands working together to promote their products.
Co-branding example can be alliances of airlines with credit card companies. Composite
products or joint products can be co-branded. The challenge is however choosing the right brand
combination and coordination between the two independent companies.
However, to avoid brand dilution, leveraging must be restricted to those categories which are
directly related to the original product. There are enormous chances of damaging the reputation
of the parent brand due to the failure of new products.
Reference
http://www.researchomatic.com/Products-And-Branding-Strategies-71575.html
http://www.researchomatic.com/Branding-And-Expansion-92086.html
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