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Branding 101
Brand Extension vs. New Brands
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In rare cases brand extensions can do well when the new extensions create a new category.
For example, Nyquil created Dayquil.
The new extended brand did not directly compete with the original brand, since Dayquil created a new category: the daytime category.
Even with the success of Dayquil, the rules of line extension suggest a new brand name would have done better in the long run without the name extension.
This is because Nyquil customers are much more likely to purchase Dayquil than non-Nyquil users. With a new brand you can remove the original brand bias.
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