Brand extension is a common method used when launching a new product, usually by leveraging the advantage of an existing brand on the new product, in a 'other category. A company that uses brand extension (also known as line extension) as a marketing strategy hopes to increase its profits from new product offerings by leveraging its existing customer base and brand loyalty. For this method of launching new products to be successful, there should usually be a logical connection between the primary product and the new one. In most cases, a weak or non-existent connection results in brand dilution. Furthermore, if the brand extension proves unsuccessful, it may damage 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 Shouldn't Be Banned"? Get an original essay To show how you could create a successful brand extension on, for example, a breakfast cereal product, you need to look at a few steps. The first step would include research on both the parent company and the brand extension (Dall'Olmo Riley, Hand, & Guido, 2014). For example, a company has a cereal product under the brand name Unique Q. This product, Unique Q cereal, has proven to be a very successful product in the market, giving the company greater command of the cereal market base thanks to the attention of customers, loyalty to the brand. As a result, the company may want to introduce some 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 by the extension products, it would make sense to argue that the Unique Q brand is a diet as well as 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 parent brand. Unfortunately, more often than not, business managers use their own vision of the parent brand as a reference point to determine whether a brand extension shows consistency with the parent brand. Such brand perceptions often conflict with those of consumers. Furthermore, managers do not fully understand consumers' judgments about brand extension fit and therefore it is quite difficult for them to consider all aspects that consumers use to determine whether a particular brand extension fits a brand. brand extension of the Unique Q cereal product, you might start by considering what is important to consumers. When consumers consider brand extension, there are four underlying concepts that they evaluate individually in order to form an overall opinion on the consistency of the brand extension and the original brand (Dall'Olmo Riley, Hand, & Guido, 2014). These four underlying constructs 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 parent brand attributes Unique Q cereals would clearly be appropriate for the sale of cereal making machines but not appropriate 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 the rationale behind why the brand extension is being.