Brand extension is the practice of using an established brand name to launch new products or services.
This strategy builds on the existing brand equity, making it easier to attract customers who already trust the brand. Effective brand extensions maintain consistency with the brand’s core values and identity while exploring opportunities for growth.
For instance, a luxury watchmaker might extend its brand to create high-end jewelry, capitalizing on its reputation for quality and elegance. On the other hand, unrelated extensions, like a tech company introducing fitness apparel, require stronger positioning to avoid diluting the brand. Success hinges on relevance, quality, and meeting customer expectations in the new category.