Brand extension is a commonly used method when launching a new product, usually using the advantage of a brand name existing on the new product, in another category. A company using brand extension (also known as line extension) as a marketing strategy hopes to increase its profits through the new product offering by leveraging its existing customer base as well as brand loyalty. For this method of launching new products to be successful, there usually needs to be a logical connection between the main product and the new one. In most cases, a weak or no connection results in brand dilution. Additionally, if the brand extension proves unsuccessful, it may harm the previously popular parent brand (Dall'Olmo Riley, Hand, & Guido, 2014). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayTo show how to create a successful brand extension on, for example, a breakfast cereal product, a few steps must be observed. The first step would include researching both the parent company and the brand extension (Dall'Olmo Riley, Hand, & Guido, 2014). For example, a company owns a cereal product under the brand Unique Q. This product, Unique Q cereals, has been very successful in the market, giving the company greater control of the cereal market through customers. brand loyalty. As a result, the company may want to introduce new products using brand extension as a marketing strategy. Products include Unique Q Waffles, Unique Q Snack Bites, Unique Q Protein Bars and Unique Q Cereal Makers. Judging from the extension products, it would be wise to state that the Unique Q brand is a diet in addition to being a nutritional product. According to Dall'Olmo Riley, Hand, and Guido (2014), the key to successfully launching brand extensions is to first determine whether the line extension is consistent with the core brand. Unfortunately, more often than not, business owners use their own vision of the parent brand as a reference point to determine whether a brand extension has consistency with the core brand. These perceptions of the brand often contrast with those of consumers. Additionally, managers do not completely understand consumers' judgments about the suitability of the brand extension and therefore it is quite difficult for them to examine all aspects that consumers use in order to determine whether a particular brand extension is a good fit. to a brand. extension of the Unique Q cereal product brand, we should start by considering what is important to consumers. When consumers consider the brand extension, there are four underlying concepts that they evaluate individually in order to form an overall opinion regarding the consistency of the brand extension and the original brand (Dall' Olmo Riley, Hand and Guido, 2014). . These four underlying concepts include relevance, recognition, credibility and transfer. Relevance refers to the degree to which the original brand attributes are important to the brand extension category. For example, the attributes of the parent brand Unique Q Cereals would clearly be appropriate for the sale of cereal preparation machines, but not for the sale of other equipment such as dishwashers or refrigerators. Recognition refers to the degree to which consumers are able to familiarize themselves with logic.