Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on Colgate Kitchen Entrees, which failed quickly. This innovation strategy is an example of an unsuccessful

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Business

Terrance

24 April, 13:43

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on Colgate Kitchen Entrees, which failed quickly. This innovation strategy is an example of an unsuccessful

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Dolce · Answer 1

Answer: brand extension

Explanation: Brand extension refers to a marketing strategy which involves a well-known, developed and popular brand who has enjoyed continuous success in a particular market aims to delve into another area of the market or totally different product category using the same brand name.

In the scenario above, Colgate, a household name in toothpaste manufacturing decided to launch the Colgate kitchen entree which an entirely different market domain. The innovation strategy wasn't successful as it got consumers confused who saw them as developers iating from their original domain. Even though Colgate's intention was to use their existing popularity to extend their brand.