New Brand Extensions: Patterns of Success and Failure

Jaywant Singh, John Scriven, Maria Clemente, Wendy Lomax and Malcolm Wright

The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions.

New Brand Extensions: Patterns of Success and Failure

Jaywant Singh

Kingston University

John Scriven and Maria Clemente

London South Bank University

Wendy Lomax

Kingston University

Malcolm Wright

Massey University

Management slant

  • Repeat purchase and penetration data of new brand extensions in the first few quarters can reveal their long-term potential for success.
  • Successful new brand extensions quickly gain penetration and repeat purchase levels close to comparable established extensions, whereas the failing extensions show declining repeat purchase from the third quarter after launch.
  • Focus on distribution and repeat purchase is crucial to success of new extension.
  • Advertising reinforcing the...

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