Brand extension

Brand extension refers to the strategy of using an established brand name to launch new products or services in different categories. For example, if a popular snack brand starts selling a line of beverages, it is extending its brand. This approach leverages the existing brand's reputation and customer loyalty, making it easier to gain acceptance for the new offerings. However, it’s crucial that the new products align well with the brand's image and values, as a poor fit can confuse consumers or damage the brand's credibility.