Reading a classmate’s blog, Josh feyissa talks about how starbucks is using brand extension to bring new products in the market , specifically alcoholic beverages. With starbucks generating 70 percent of their revenues before 2 am at night, Josh mentions how by promoting alcohol beverages at that time, the company can attract the night crowd. I totally agree with Josh. By already having a well known and well developed brand image, i do believe the company can have a good return on investment as alcohol would be served as a prestige product. Consumer behaviour is almost predictable at that time and taking this into consideration, Starbucks will definitely manage to increase and leverage brand equity. Other brand extension that ive seen really fascinating would be the Lamborghini bike. For $7500, one can own yellow Lamborghini. For fanatics that can’t afford the car yet, at least they can show brand loyalty when biking .This prestige value added to the bike will affect consumer behaviour which in turns will affect sales. Ferrari did the same thing too when entered the shoe industry in the form of Puma. In general we can see how Brand extension adds value to our community
