Brand Extension is a marketing strategy where a company leverages its existing brand name to launch a new product or enter a different market category. The goal is to capitalize on brand recognition, trust, and customer loyalty to reduce marketing costs and increase the chances of success. Successful brand extensions align with the core brand identity and maintain a strong connection with existing products.
What is an example of a successful brand extension?
Apple extending from computers to smartphones (iPhone) and wearables (Apple Watch) is a classic example of successful brand extension.
What are the risks of brand extension?
If the new product fails or does not align with the brand’s image, it can cause brand dilution and weaken consumer trust.
How does brand extension benefit companies?
It allows companies to enter new markets with lower risk, leverage brand equity, and reduce customer acquisition costs.
What is the difference between brand extension and line extension?
A brand extension moves into a new product category (Nike moving from shoes to apparel), while a line extension expands within the same category (Coca-Cola launching Diet Coke).
Or want to know more about pre-seed funding?
