Before extending the mother brand to a new category, a company must conduct a market research to find out the associations of the brand with the target segment and how such an extension will change this association. Every marketer knows that brand building is an expensive proposition. So, when a new product is being launched by a company, it is always tempting to use a brand name, which has already been established in the marketplace. Brand extensions seem to be working wonders for icons like Godrej, Tata, Virgin, Honda, etc. Buoyed by the success of these entities, LG has launched LG Care products that include detergents, toothpastes, and toilet soaps in India, where it has been known for its consumer durables. It is too early to make conjectures regarding the success (or failure) of this brand extension. However, there are a number of noteworthy aspects related to brand extensions that are presented below.

The advantage enjoyed through brand extensions is that the image of the mother brand gets rubbed on the new product and thereby, blessing it with the attributes of the mother brand. When Reckitt & Coleman (now Reckitt Benckiser) launched a toilet soap, it made use of the well-known Dettol brand name, but tried to promote it like just another toilet soap. The launch failed and a research study told them the reason: the positioning of the toilet soap was in sharp contrast to the brand image occupied by Dettol in consumers' minds. The consumer always thought of hygiene or germ-free as the attributes of Dettol and, therefore, this novel positioning of a Dettol soap created confusion and dissonance in the minds of consumers. However, the company was quick to take the corrective action and a new advertisement was the result. The ad now portrays a man getting out of a crowded local train and coming home grimy and sweaty, then, Dettol soap helps him have a 100% bath, evoking the core attributes of the Dettol brand. This made perfect sense to the Indian consumer and even today the Dettol soap (with all its variants) carries the same value proposition that captures the core attributes of the brand. Therefore, the moot point is to stick to the core attributes of the mother brand while extending the brand. Virgin offers music, airline services, etc., but all its brands carry certain synergy: they are bold, innovative, youthful and exuberant. As a consequence, even if Virgin launches a new product, consumers inherently feel that the product will also offer the attributes mentioned above.