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But there are also simpler methods of penetrating existing niches, namely product line extension and brand franchise extension. Product line extension entails the use of an established brand name on a new, related product. For example, the Wonder Bread name could be applied to a whole wheat bread to penetrate that market. Brand franchise extension refers to the application of an old brand to a completely new product line. For example, Coca Cola could elect to apply its name to a line of candy products. One of the risks of brand and product extensions is that the name will be diluted or damaged by the new product.
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