If Grips decided to launch a brand extension, which of the following products would be the best candidate for a new product under the Grips name?

A) athletic clothing
B) nutritional supplements
C) skateboards
D) vacuum cleaners
E) breakfast cereal

Answer: C
Explanation: C) Brand extension makes sense if the good qualities of a brand will transfer over to a new market. Grips is known for tires, tubes, and brake pads, and so producing skateboards, Choice C, is not a huge stretch. It is easy to believe that a company that is good at one could be good at another. On the other hand, Grips' expertise would be harder to convert to clothing (Choice A), food (Choices B and E), or cleaning products (Choice D).