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Pablo Your paper is very informative in the sense that it shows both side of the equation-the positive and the negative about brand extensions. Generally, I agree with the points that you raised. I also believe that brand extensions could avoid the dilution of the brand by avoiding the venture into very different sectors. For example, imagine Dell using the brand for computers and then diversifying into health tea products. I believe that in such case, building a new brand may be more appropriate by leveraging on the equity of the established brand.
Faisal I like your use of the Virgin group in order to exemplify the case of having brand extension ruin the whole point of venturing into identified potential profitable ventures. I specifically like this statement which defines how business organizations should go about the extension: "Unless the Brand name is strategically able to brand its extension to their customers and is capable to achieve this goal through similarities then and only then the success is higher. A company should extend their products as long as it is appropriate and along the lines of their products and or services.
But, if the company wishes to expand to a class and or category different or other than what they are in, then there is a higher chance of failure." Do you mean that different brands should be used in different sectors or categoriesSamuel Your discussion is very informative. Instead of focusing only in the advantages and disadvantages of brand extensions, you have made the leap through identifying the steps which should be considered by marketers. My question is, can you discuss more on distancing techniques How is it doneKjaersti Richard Branson's extreme personality should be credited for his venture in numerous unrelated product categories.
Your comment that Virgin is the brand which stresses that "Nothing is impossible," made me ask myself this question: If the brand truly has surpassed consumer perception about the relativity of products to each other within the same brand, does this give Virgin the ability to launch any product under the Virgin brand What do you think Patience I like your discussion because it shows the knowledge that you have acquired from the readings. Yes, I agree with the points that you made. Brand extensions are almost always successful when products in consideration lie within the same product category.
Consumer perception, as you pointed out, is still a key to the success or failure of an extension. But isn't it that marketers create this consumer perception
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