Extensions are basically of three types — product-related extensions or line extensions, image-related extensions and un-related extensions. Line extensions are used by companies to upgrade their customers e.g. Lever upgrades ordinary Lux users to Lux International and Lifebuoy users to Lifebuoy Plus. Sometimes a company downgrades the product for a different segment of customers.
Image-related extensions should have a match between the parent brand and the extended brand in terms of image. Such a fit exists when companion products are introduced for instance, Cibaca paste and Cibaca brush. Even product extensions can have an image match, say Prestige Cookers and Prestige pressure pans. Dettol antiseptic liquid and and Dettol soap has achieved such a fit. Another matching expected is between organisation and the extension. Lakme as an organisation is associated with feminine beauty care. It is, therefore, unmatched to market like Lakme After Shave Lotion, a typical man’s use product. If the organisation’s brand image and the extended brand’s image do not match, the extension is likely to fail.
Inspite of the above match making, there are failures if the marketing mix for the extended brand is not managed properly.
In unrelated extensions also, the match making principles holds good. Sometimes unrelated extension happen along the route as the organisation evolves e.g. Tata started from steel and textiles but extended to diverse areas like power cosmetics, medicines, telecommunications, consumer electronics, computer consultancy and software etc. Since then, it has withdrawn from areas like soaps, oils and TVs. Wipro had a small plant making hydrogenated vegetable oil at Amalner in Maharashtra. Since then, they have entered into computer harware and software. Godrej has registered its presence in a number of industries e.g. safes, fridges, soaps etc.
Extensions become successful if the organisations show commitment, there is matching of the brand and extension and proper attention is paid to the marketing mix of the extended brand.