When established brands introduce new products, they need to ensure they maintain their brand image and this can be difficult to do.

A line extension involves the use of the same brand name within the same product line and increases the depth of a product line. Usually, trying something which is a variation of a product consumers know and trust is less risky than trying an entirely new product. Even then, some line extensions have been unsuccessful.

An example of this would be PepsiCo’s ‘Pepsi AM’ released in 1989, when there seemed to be a decline in coffee sales. Attempting to capture the market for morning beverages, PepsiCo introduced this soft drink with 28 per cent more caffeine per ounce than the original Pepsi. However, the consumer response was mostly negative as the idea of soda with breakfast was not appealing, and it was discontinued in 1990. I think PepsiCo had the wrong target market here, expecting coffee-drinkers to break away from a traditional breakfast.

Pepsi AM

A brand extension involves the use of the same brand name in a different product line. This can be risky because if the new product does not live up to consumers’ expectations of a particular brand, it can adversely affect their views of the brand in general. At the same time, a positive reaction could lead to increased sales and profits.

An example of this would be Duracell’s Powermat, released in 2013. This provides wireless charging for mobile devices by placing your phone in a specific phone case and on the powermat, as well as a back-up portable battery for emergencies. The company recognized a need for on-the-go chargers. Thanks to its strong reputation for high quality batteries, the company managed to use its core strengths to create a successful product in a different category.

Duracell Powermat

http://www.prweb.com/releases/2013/2/prweb10389667.htm

http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/#!slide=982932