Question

Explain the four choices companies have when developing brands. Provide an example of each.

Answer 1

In developing brands, a company has four choices:

1. line extensions: encompassing an existing brand name to new formats.
2. brand extensions: Mixes an existing brand with a new product category. Like pepsy max or coca cola zero.
3. multibrands Launching several different brands in the same product category. Nestle has different brands of cereals as a way to cover different segments.
4. new brands. Re branding an existing brand as it is not as powerful as before.