Management Notes

Reference Notes for Management

Brand which is result of extension in brand or sub-brand is classified as

Brand which is result of extension in brand or sub-brand is classified as


A. brand extension
B. sub-brand
C. parent brand
D. product extension

The Correct Answer Is:

  • C. parent brand

The brand that serves as the foundation or the original brand from which extensions or sub-brands are derived is classified as the “C. parent brand.” The parent brand is the core brand that has established a strong identity and reputation in the market, and it may choose to introduce new products or brands under its umbrella.

This strategy allows the parent brand to leverage its existing goodwill, credibility, and customer loyalty to support and promote new offerings. Now, let’s delve into why the answer is correct and why the other options (A, B, and D) are not applicable:

C. Parent Brand – Correct Answer

The parent brand, also known as the master brand or flagship brand, is the original brand that has gained recognition and trust in the marketplace. It serves as the anchor for various brand extensions or sub-brands. The parent brand is responsible for maintaining its established reputation, values, and identity, which are then carried over to the extended or sub-brands.

This strategy is often used to create a family of related products or services, where the parent brand’s equity is leveraged to enhance the credibility and acceptance of the new offerings.

For example, the parent brand “Coca-Cola” has introduced sub-brands like “Diet Coke,” “Coca-Cola Zero,” and “Coca-Cola Cherry,” all of which benefit from the positive associations and recognition of the parent brand, Coca-Cola.

Now, let’s discuss why the other options are not correct:

A. Brand Extension – Not Correct

“Brand extension” is a valid concept, but it is not the term used to describe the core or original brand. Brand extension refers to the strategy of introducing new products or services under an existing brand’s name.

These new offerings are often related to the core brand’s expertise or value proposition. Brand extension can include line extensions (new variations of existing products) or category extensions (new products in a related category).

For example, if a company known for producing high-quality audio equipment introduces a new line of headphones under its existing brand name, that would be considered a brand extension. However, the original brand, in this case, is the parent brand, but “brand extension” refers to the new product introduced under that brand.

B. Sub-Brand – Not Correct

A “sub-brand” is a term used to describe a brand that is related to and often subordinate to the parent brand. Sub-brands are created within the umbrella of the parent brand but may have their own distinct identity, name, and positioning.

They are used to differentiate specific product lines or variations within the larger brand family. Sub-brands typically retain some connection to the parent brand, which can help in signaling quality, trust, or category relevance.

For example, a well-known parent brand in the automotive industry may introduce a sub-brand for its luxury vehicle line. The sub-brand could have its name, such as “Lexus” for Toyota. While it is connected to the parent brand (Toyota), it has its own brand identity, target market, and positioning.

D. Product Extension – Not Correct

“Product extension” typically refers to the introduction of new variations or versions of an existing product. It is not a term used to describe the core brand from which extensions or sub-brands are derived.

Product extension can involve expanding a product line by adding features, sizes, flavors, or other modifications to cater to different customer preferences. The original or parent brand is the overarching brand that encompasses various product extensions within its portfolio.

For example, a company that produces a range of cleaning products may introduce a new product extension by offering a more eco-friendly version of its existing cleaning solution. In this case, the parent brand represents the overarching brand, and “product extension” pertains to the new variation of the existing product.

In conclusion, the correct answer is “C. parent brand,” as it accurately represents the original brand from which extensions or sub-brands are derived. The parent brand is responsible for maintaining its core identity and reputation while supporting and promoting new offerings under its umbrella.

While the other terms (brand extension, sub-brand, and product extension) are valid concepts in branding and marketing, they do not specifically refer to the core brand from which extensions or sub-brands originate.

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