Brand dilution occurs when a company's brand loses its value or strength due to overextension or mismanagement. This can happen when a brand introduces too many products or enters unrelated markets, causing confusion among consumers about what the brand represents. For example, if a luxury brand like Gucci starts selling low-cost items, it may weaken its exclusive image. Another factor contributing to brand dilution is inconsistent messaging. When a brand fails to maintain a clear and cohesive identity across different platforms, it can lead to mixed perceptions. For instance, if Coca-Cola promotes a health-focused beverage while also marketing sugary drinks, it may confuse consumers about its core values.