When it has to consider choosing a brand strategy, the decision area consists of four choices. They are line extension, brand extension, multi-brands and new brands. First of all, line extension is adding of another variety of a product to an already established brand line of products. For example, car companies such as Jaguar or Mitsubishi motor; they may invent new design, improved engines create any requirement and make reasonable arrangement to cope with the customer’s current demand. (I.e. Jaguar X type, type and SK series) So, line extension is when they add new type of cars to the same brand line which already exists on the market.
Brand extension is addition of a new product to an already established line of products under the same brand name. Brand extension allows the new product the benefit of the older product's established reputation. For example, at its introduction to the marketplace, Jaguar or Mitsubishi already enjoyed their reputation of their brand. Moreover, if costumers consider them as trusted brand, they should consider innovating the new product to add in the product line.
Multi-brand is when new brand introduce in the same product category. Marketers who use a multi-brand strategy acquire greater market share than they could with fewer brands, even though one of their brands may somewhat cannibalize another. Multiple brands also enable marketers to acquire more shelf space and to respond to consumer demand for something new.
New brand is long term marketing support for a brand, based on the definition of the characteristic of the target consumers. It includes understanding of their preferences, and expectation from the