Episode 75

Are Brand Extensions Worth the Risk?

Brand extensions gain an average of 8.3% more market share and have 8.7% lower advertising costs compared to new brands entering a category. But they also come with risks.

This week, Elena, Angela, and Rob explore the world of brand extensions. They discuss research on what makes extensions succeed or fail, share examples of extensions gone right (and very wrong), and debate whether Dyson's new headphones are genius or folly. Plus, learn why Lego might be the greatest brand extension success story of all time.

Topics Covered

• [01:00] Dyson's extension into headphones

• [04:00] Research on brand extension success factors

• [09:00] Uber's expansion into food delivery

• [15:45] BIC's failed disposable underwear line

• [19:30] Lego's empire of successful extensions

• [23:00] Harley-Davidson's ill-fated perfume launch

• [26:30] Dove's expansion from women's to men's products

• [27:30] Evian's bizarre water bra product

Resources:

International Business & Economics Research Journal Article

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