What is Brand Extension?

Brand extension is a strategy in which a new product is launched or market using an established brand or platform. When a new category of product is launched on an existing and reputable brand, it is brand extension. Brand extension is also called brand stretching, companies use this strategy when they need to increase their brand equity. For instance, if a section of an existing manufactures a new product related to the initial bran, rather than launch or market the new product using another brand name, the company uses the established brand name.

How does Brand Extension Work? 

It is important to know that for a brand extension to be successful, a relationship must exist between the new product and the existing product or brand. Marketing an unrelated or arbitrary product using the existing brand name can lead to failure of brand extension. Brand extension is used across different companies, industries, and businesses. The reputation of the existing or established brand name is another factor that determines the success of a brand extension. But primarily, a brand extension fails when there is no correlation between the new product and the original product or both products negate each other, for instance, a perfume and a lighter.

Examples of Brand Extension

Primarily, brand extension entails offering an existing or an original product in a new form. Brand extension can be done in any form of business. Popular examples of brand extension is a brand that produces cigarette, launching its new lighter or matches using the existing brand name. Also, an eatery marketing or launching its new bar using the existing brand name is an example of brand extension. A successful brand extension often relied on a connection between the new product and the existing brand. When two popular products are combined, it is also an instance of brand extension, for example, a store selling cookies opening another store selling ice cream. Another one is coffee and cream. 

Related Topics

• What is Branding?
• Brand Image

• Brand Recognition
• Brand Identity
• Brand Awareness 
• What is Brand Loyalty?
• What is Brand Equity?
• What are Private Brands? 
• What is Brand Management
• What are Brand Advocates?
• What is a Brand Community?
• Brand Potential Index Definition
• Brand Extension