123 - Q1 Efficiency of marketing effort Exploit existing...

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Q1 Efficiency of marketing effort Exploit existing brand equity Offering multiple products to your customers is a strong marketing strategy that provides customer choice and allows you to reach a broader audience. Successful companies look for methods to expand their current product line to enhance profits and increase their market share. The best product line extension strategies capitalize on the success of existing products and enhance the brand image of your products. Q2 The main idea to understand the success of a brand extension is to consider the consumer’s evaluation concerning the fit and the level of leverage between the brand extension and the core brand. Those two main factors describe two axes of consumer’s perceptions and expectations: • “Fit”: The fit between the expectation brand and the care brand is probably the most important factor of a successful brand extension. It refers to the boundaries issue of the different product categories under the same brand. In other word, Fit is the stretch-
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123 - Q1 Efficiency of marketing effort Exploit existing...

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