A brand extension occurs when a firm uses an existing brand on a new product in a different category. A poll of 11,000 Adweek readers voted from a list of 10 — and Zippo The Woman Perfume (yes the company that makes lighters that use that smelly fluid — at least that is how I remember the company) topped the list. I didn’t know that Dr. Pepper was making a BBQ sauce and a marinade — of course 7 Up and A&W are in the same product-market. For the whole list, see the Business Insider “See The 10 Worst Brand Extensions Currently On The Market” (February 9, 2013).
Why were these brand extensions identified as being particularly “bad”? What are benefits to brand extensions? What are some potential costs? What are some examples of “good” brand extensions?