Effect of Brand Extensions on Parent Brand

Brand extensions have become a popular way of introducing new products into the market. Brand extensions leverage a firm’s most valuable hidden asset, its brand name. The brand extension adds or deletes something in the core brand concept. In the Indian market also classic brands like Dove, Ponds, Saffola, Pears, etc. have gone for successful extensions that have increased the profitability of the companies and have added to the Brand Equity of the parent brands. The brand extension can enhance or dilute the parent brand image and this is a serious concern for brand managers today. This conceptual paper tries to explore the factors that affect the success of brand extensions and how it affects the parent brand image. A conceptual model is developed that sees certain moderating variables that determine the success and enhancement.