While brand extension can work well, it can also be risky. Some of the potential drawbacks that can stop a brand extension from working well include:
Customer confusion: Once, Colgate tried to sell lasagna. Reading that sentence, or seeing that product in a grocery store, simply doesn't feel on-brand and can lead to customer confusion.
Quality and consistency issues: When a company launches a product that strays from the line they've honed for years, there can be some growing pains. This can cause customers to lose faith in the brand due to poor experiences with the new product.
Dilution of brand identity: Customers often associate brands with their star products. When a company releases a new product that's not in line with its other offerings, the idea of what the brand represents can become cloudy and weaken the brand identity.
Product cannibalization: Sometimes, the release of a new product as a part of a brand extension strategy can backfire if companies are not prepared for product cannibalization. When this happens, a company's new product replaces an old product, leading to a dip in sales.