LINE EXTENSION VS BRAND EXTENSION - THREATS AND OPPORTUNITIES


Author: Liliya Lozanova, PhD Candidate, (UNWE)

Keywords: new product, brand, new product launch, brand extension, line extension

:The article is intended to clarify the difference between brand extension and line extension. Adefinition what a brand is had been gven in order to define how it can be further extended. The extension strategies are investigated based on their impact on the brand itself, consumer behaviour, company performance and partly the influence it has on the total market. The main opportunities of both strategies are consumer thrust, decreased advertising costs, improved brand visibility, increased consumer acceptance of the new products, improved brand image and possibilities for future extensions. The threats are connected with a change in the quality perception, brand image dilution, adding of negative associations, cannibalization and missing further opportunities. Based on the abovementioned threats and opportunities recommendations for usage of brand or line extension had been given. The examples in the article and the main conclusions are based mainly on the FMCG sector on Bulgarian market

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