Merkevareutvanning

Merkevareutvanning, also known as brand dilution, is a marketing term that describes the weakening of a brand's image or value when it is extended into too many product categories or when the new products are not consistent with the brand's core identity. This can happen when a company leverages its established brand name to launch new products that are significantly different from its original offerings or that are of a lower quality. The risk is that consumers may become confused about what the brand stands for, or they may associate the brand with products that do not meet their expectations, thereby diminishing their overall perception of the brand's quality and trustworthiness.

Companies may engage in brand extension to capitalize on existing brand equity, reduce the costs of launching new products, and reach new customer segments. However, poorly executed brand extensions can lead to negative consequences. For instance, if a luxury brand ventures into low-priced products, it might alienate its core customer base and damage its premium image. Similarly, extending a brand into an unrelated product category without careful consideration can result in a lack of credibility. The success of a brand extension often depends on the perceived fit between the new product and the parent brand, as well as the quality of the new offering. A well-managed brand extension can reinforce and strengthen the brand, while a poorly managed one can lead to merkevareutvanning.