Merging and milking brands are examples of creating brand extensions.
Brand extension refers to the process in which a firm markets a new product by using its established brand names. It is a way to take advantage of the company’s already established brand equity to increase the market and reach of the new product.
The assumption is that consumer loyalty, familiarity, brand popularity and reputation of the producer will ensure that the product is readily integrated into the market. Product extension can further help in expanding the reach of the product to new markets and consumer base, and increase overall profit margins as a result.
To learn more about brand extensions: brainly.com/question/13949619
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