MANAGEMENT

Detailed explanation-1: -The company relies on the brand loyalty of its current customers, which it hopes will make them more receptive to new offerings from the same brand. If successful, a brand extension can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.

Detailed explanation-2: -Advantages of Brand Extension It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.

Detailed explanation-3: -A brand extension is a marketing strategy that uses an established brand to create new products or enter a new brand category. Brand extensions are used to build brand equity. The more a brand offers (and can do well), the more valuable the brand may become.

Detailed explanation-4: -A brand promise is a value or experience a company’s customers can expect to receive every single time they interact with that company. The more a company can deliver on that promise, the stronger the brand value in the mind of customers and employees.

Detailed explanation-5: -Brand extension is a marketing strategy in which a company uses an established brand name on a new product in a related or unrelated category. Releasing an item under a well-known company brand might allow the launch to receive support from existing loyal customers.