The Brand Extension Strategy

Brand extension strategy involves a company using an existing brand name to launch new products in different categories. This leverages the established brand’s reputation and customer loyalty, making it easier to introduce new items. For example, if a well-known snack brand starts selling a line of beverages, it can attract customers who already trust the brand. Successful brand extensions can lead to increased sales and brand visibility, but if the new products don’t meet consumer expectations, it could harm the original brand’s image. Overall, it’s about expanding reach while maintaining brand integrity.