Some reasons that may lead to brand dilution are listed below:
1. Licensing: If the product being licensed by the brand is not worth the value than it will lead to dilution of brand. If the licensed product displays bad quality it will lead to brand dilution.
2. Inconsistency: When the brand does not stick to it’s core values leading to inconsistency results in brand dilution.
3. Tapping into inappropriate niche: A brand tries to expand into totally dissimilar product line like a snack brand getting into soap business leaves the consumers confused about the brands future and hence may lead to weakening of brand image.