Name: Basit Ali Jadoon 1935381

Section A:

Offering different brand names for different products:

1. Hilal Foods Pvt. Ltd:
Hilal food offers different brand name to different products. Its portfolio is consisted of food
items and powdered drink. Some famous brand from its portfolio are following:
1. Kake: Cream filled cake
2. Pan Pasand: Pan flavor candy
3. Ding Dong: Bubble gum
4. Choco 4: Crunchy-munchy chocolate beans
5.  Sun Sip Limopani: Delicious lemony powdered beverage
Pros:

1. Having a large product line and multi-brand gives a very high chance that even after
switching the brands, the customer is still associated with the company.
2. Any brand failure mayn’t impact image of parent brand.
3. Facilitates the acceptance of new products by the retailer that is already stocking your
other product(s).
4. Due to this strategy, Hilal food diversified its portfolio from cake to beverage.
5. Parent brand’s each brand extension has own brand image in market. Thus, one brand
image isn’t stick to parent brand which limit company ability for brand extension.
Cons:

1. Cannibalization between brands.

2. Failure due to poor management.
3. Loss of credibility for the manufacturer brand.
4. Separate promotional campaign for each brand.

2. Continental Biscuits Limited (CBL):

For more than two decades Continental Biscuits Limited (CBL) is engaged in the manufacturing
and marketing of the brand LU. LU offers different type of biscuits under different brand name
according to consumer needs. Some of the LU famous brands are:
1. TUC: serves as the perfect light, salty snack
2. Prince: chocolate cream biscuit
3.  Candi: only brown sugar biscuit
4. Tiger:  Power packed biscuits that bring together the goodness of milk and glucose 
5. Gala: contain the natural goodness of milk and eggs
 Pros:
1. Leaving less shelf space for competitors and obtaining more for yourself.
2. Each brand is associated with separate target market.
3. Any brand failure mayn’t impact image of parent brand.

Cons:
1. Confusion caused by overlapping segments that will result in brand switching.
2. Cannibalization between brands.
3. Separate promotional campaign for each brand.
4. Increase cost of introducing new brand.

Offering same brand name for different products:

3. National Foods Limited:
National Foods Limited is a Pakistani food products company founded in 1970, which started out
as a spice company and now is a major food products company in Pakistan. National foods has
added many different products, like Salt; Desserts; Ketchup; and some other product, in its
portfolio with same brand name.

Pro:
1. Cost reduction in introduce new brand.
2. Customer are familiar with the parent brand name.
3. By promoting the core brand, companies are also promoting the extension.
4. They can help the product be easily accepted.
5. Low risk strategy to introduce the new product.
6. Companies don’t have to develop a new brand from scratch and spend tons of money
on it.

Cons:
1. Higher the risk to dilute the Parent Brand image
2. Poor choices for brand extension may dilute and deteriorate the core brand and damage
the brand equity
3. Negative association and wrong communication strategy do harm to the parent brand
even brand family.
 Section B:
Successful Category Extensions:
Parent Brand Brand New Product
Servis Industries Limited Servis Tyres tyres for motorcycles,
bicycles, motor rickshaws
and trolleys
Engro Foods Olper’s UHT Milk
Kolson Bravo and Jam Hearts Biscuits
Engro Foods Omore Ice-cream and frozen
desserts 
Shan foods Shan Desserts Desserts

Unsuccessful Category Extensions:

Parent Brand Brand New Product
Engro Foods Olfrute Juice
Dalda Foods Cupshup Tea Whitener
Unilever Fair and lovely Talcum powder Talcum powder
Fauji Foods Must Fruit Drink Juice
Pakola Pakola pure drinking water Drinking Water
Dalda Foods Knock out Potato Chips