Imagine you are the CEO of a Fortune 500 consumer-products company. Things are going well: your recent product launch was a smash, investors are enamored, and Wall Street is singing your praises. But now your company needs to gear up for the coming product launch, and you need to decide on your next brand extension.
A company like Haagen-Dazs, known for its classy ice cream, might opt to extend into a related product category like frozen yogurt; or Nike could break into a brand new sports category, as it did with skateboarding in 2002. The decision can be crucial to your company's bottom line.
Read the full story at adage.com.