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1: UNILEVER WILL COVER MORE SHELF SPACE IN MARKET.

2: AS RIN IS A LOW PRICE THAN SURF EXCEL SO BY THIS MOVE UNILEVER CAN TARGET PEOPLE OF LOW INCOME.

3: IT ALLOWS UNILEVER TO PROTECT ITS MAJOR BRAND BY CREATING A FIGHTER BRAND.

4: A CONSUMERS GETS LARGE RANGE OF OPTIONS TO CHOOSE.

5: A COMPANY CAN ENJOY ECONOMIES OF SCALE BECAUSE KEY INGREDIENTS/RAW MATERIAL IS ALMOST SAME.

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Lec#20

lecture 20......

Please Discuss here about this GDB.Thanks

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According to my point of view when a firm uses an established brand name or a new brand is combined with an existing brand to introduce a new product it called Brand Extensions because in the above given Para there is a company named Unilever Pakistan Limited (UPL) or Lever Brothers Pakistan Limited and the company have introduced new product detergent namely “Rin” after the “Surf Excel” but (UPL) want to use a same category and brand. And there are some logical arguments are given below.
Arguments:-
1. Brand extension increases the probability of success of the company.
2. Due to the Brand extension company gets an instant position and reputation.
3. In the Brand extension strategy, the company introduces allows the retailing organization an easy and lower cost access to an existing distribution of the new existing product due to the uses and trust of the consumer and the new product use the name of an already well-known brand
4. With the uses of Brand extension increases the company’s image and goodwill.
5. Due to the Brand extension, the Cost of developing new brands is saved because the company have already its Nutrition facts and Formula for products productions

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