1、Brand Extension and Brand Dilution1Background1Conclusion4Preview Lower quality marketDissimilar productBrand dilution3AdvertisementsProduct differentiationBrand extension2P&GGoldlionRed Flag Car2BackgroundBrand extension benefit from existing brand (Liu and Hu, 2012)Brand dilution negative influence

2、 on parent brand (Keller and Sood, 2003)3Product differentiationP&GShampoo, hair care, skin care, baby care, medicine, food, drink 25 billion-dollar brands /79 global brands (P&G, 2012)PanasonicPanasonicNationalTechnicsPanasonic4Source:Panasonic corporation, 2012. Annual report 2012. online Availabl

3、e at: Accessed 3rd September 2012Panasonics growth rate of Financial dataProduct differentiation5AdvertisementsSafeguard (P&G) VS Lux (Unilever)Safeguard became a sale champion in China (Bainbridge, 2012) stars, noble,elegantmother for her childernmoisturizingdegerming6Dissimilar productGoldlion The

4、 mans worldNot professionalDoes not follow the primary principles7 Lower quality marketThe Red Flag Car company Mercedes: Smart test the level of acceptation A and B series8ConclusionLower/higher quality market test higher quality market (Heath, 2011)Family brand VS sub-brand similar: family brand d

5、issimilar: sub-brandSimilarity step by step9Reference ListBainbridge, J., 2012. Soap, bath and shower. Marketing, Vol.50: p.14.Heath, T. et al.,2011. The Asymmetric Effects of Extending Brands to Lower and Higher Quality. Journal of Marketing, Vol.75: pp.3-20.Keller, K. and Sood, S., 2003. Brand Equity Dilution. MIT Sloan Management Review, Vol.45: pp.12-15.Liu, X. and Hu, J., 2012. Adolescent Evaluations of Brand Extensions: The Influence of Reference Group. Psychology & Marketing, Vol.29: pp.98-106. P&G, 2012. All Brands. online Available at: Accessed 29th August 2012 Panaso