Brand development versus new product development: towards a process model of extension decisions

Considers the managerial processes that lead to the launch of successful line and brand extensions. Seeks to clarify the role, if any, that brand equity considerations have in the extension decision process. A case study approach is used. Data relating to 11 extension launches was collected from major fast‐moving customer goods (FMCG) manufacturers in Europe, the USA, and Australia by The Boston Consulting Group (BCG). The output of the analysis is a set of propositions about the extension process, summarized in the form of a process model. The overall conclusion is that extension decisions are more about brand development than new product development.