Like all other marketing strategies, this growth strategy also carries great risk. If not properly planned and evaluated, brand extensions can easily drag a strong brand image to the ground. To avoid such adverse effects, companies can consider the following elements of an effective brand extension:

1. Related or Complementary Products.Venturing into a new product line that is closely related to the original brand product can bring strong product and brand recognition from consumers. In this way, instant loyal buyers can be achieved as they can easily associate these new products to the original strong brand. For example, a company that produces toothpaste may similarly venture into the production of toothbrushes.

2. Good quality.Consumers value the quality of products as part of their purchase decision. It is prudent that the new product line also provides the same excellent quality that its original brand product provides. It is therefore important that the new product line meets or, better yet, exceeds customer expectations.

3. Innovative.It is not enough for brand extensions to simply build on the strong brand image of the original product. It’s also important that the new product line provides a great experience or something new that makes customers interested in trying and choosing your company’s product over established and existing competitors.

4. Memorable slogan of the brand.Creating a brand tagline for the original and brand extensions can make it easy for consumers to associate all your products with the strong brand image. Nike’s “Just Do It” is simple yet memorable and promotes harmony across all of its product lines, whether it’s shoes, clothing, sporting goods and apparel, shoppers feel a sense of triumph, success and achievement.

It should be noted that clients consider brand extensions as one with the original brand, therefore; they must complement and support the original brand, rather than cause inconsistencies, incompatibilities and possibly confusion among buyers.