It increases brand image.The risk perceived by the customers reduces.The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other.Cost of developing new brand is saved.Consumers can now seek for a variety.There are packaging and labeling efficiencies.The expense of introductory and follow up marketing programs is reduced