What is Brand Extension?

Brand extension is a marketing strategy where an established brand name is used to launch new products or enter new categories. Examples include Apple extending from computers to phones, or Virgin extending from music to airlines and space travel.

When to consider Brand Extension?

Brand extension works well when there's strong brand equity, logical connection between categories, opportunity for growth, and when the extension can leverage existing brand strengths while meeting customer needs in new ways.

When might Brand Extension be risky?

Extensions can dilute brand meaning, confuse customers, damage brand equity if unsuccessful, or face rejection if perceived as too far from the core brand. They require careful consideration of brand fit and market opportunity.

What is the importance of Brand Extension in Branding?

Successful brand extensions leverage existing brand equity to reduce launch costs, accelerate market acceptance, create new revenue streams, and strengthen the overall brand portfolio while maximizing return on brand investment.