Brand Extension Analysis

Should You Stretch Your Brand? A 4-Point Check.

Before you put your famous brand name on a new product, ask these questions.

1. Does it make sense? (The Fit Test)

• Does the new product feel like a logical next step for your brand?
• Does it match your brand’s personality and values? (e.g., A luxury brand selling budget items? Probably not.)

2. Can you actually do it well? (The Skills Test)

• Do you have the expertise and resources to create a high-quality product in this new category?
• Or are you entering a field where you have no right to play?

3. Will it hurt your core brand? (The Dilution Test)

• If this new product fails, could it damage your main brand’s reputation?
• Could it confuse your customers about what your brand stands for?

4. Is it a good business opportunity? (The Market Test)

• Is the new market attractive? Is there room for you to compete and win?
• Will this extension generate real growth?

If you can’t confidently check all these boxes, think twice before extending your brand.