3. Why would a brand want to extend into a ‘divergent’ category? Enumerate several of the advantages that a brand could incur from such an extension strategy. Radu Dimitriu Associate Professor in Marketing Trinity College Dublin, Dublin, Ireland Brands are among the most valuable assets on a company’s balance sheet.

Consequently, companies have been seeking to create value by leveraging such assets as extensions to new markets or categories. Managerial wisdom and a significant body of research (see the current chapter) suggest that a brand extension strategy is likely to be successful when the extension logically fits (or is similar)

to the parent brand. For instance, Whirlpool’s range spans white goods and kitchen appliances, including washing machines, driers, fridges, hobs, microwaves, or extractors. Colgate’s expertise lies in oral care, including a large range of toothbrushes, toothpastes, mouthwashes, or flossing products.