Brand extension strategies and evaluation from the retailers' perspective

ABSTRACTCompanies increasingly follow ?Brand Extension? strategies by introducing newproduct under the same brand name. The main reason of this is generally reducing the cost ofnew product introduction and increasing the sales. But Brand Extension Strategies has severalimportant effects on the parent brand and company.Another reason for following brand extension strategy is to enter retailing shelf easilyand get more shelf space. Brand extension strategies, which are generally applied for thestrong brand of producers, also provides some advantages for the retailers but at the sametime it causes important problems for them.In this study, brand extension is evaluated according to the retailer?s point of view andbrand extension?s effects on retailers are examined. This study consist of 3 parts. In the firstpart, the concepts about product and brand are mentioned. The second part of study coversinformation about brand extension strategies in detail. In the last part of study retailersopinions about brand extension strategies and the effect of this strategies on retailers isexplored.