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...