Brand leveraging is an important form of new product introduction because −
● Strong brand leveraging provides consumers with a sense of familiarity.
● It carries positive brand characteristics and attitudes into a new product category.
● Strong leveraging perceives instant recognition to the brand. Consumers are more likely to try leveraged product.
● As the products belong to the different categories, they do not compete for market share.
● More products mean greater shelf space for the brand and in turn more opportunities for sale.
● The cost of introducing a brand-leveraged product is less than introducing an independent new product.
● A full line permits coordination of product offerings, such as bagels and cream cheese, potato chips and ranch dip, peanut butter and jelly, etc.
● A greater number of products increase efficiency of manufacturing facilities and raw materials.