Discuss why brand extension may not always work.

Brand extension can be a particularly effective use of branding. It is a strategy of applying an established brand name to new products. As a result, customer acceptance of the new products is more likely because of their familiarity and satisfaction with the existing products bearing the same name. This reduces the risk of new-product failure. Today about one-half of new consumer products use some form of brand extension, such as the same product in a different form, a companion product, or a different product for the same target market.
The more highly regarded a brand is by customers the better candidate it is for brand extension—provided that a new product will not hurt its reputation and has some relevance to it. The strong favorable image of the Lady Borden brand made it ideal for such brand extension. A favorable image should be zealously protected from being cheapened or having its perception of good value undermined.