Brand extension is a marketing strategy in which a company uses an established brand name on a new product or product category. It is also known as brand stretching. The goal of brand extension is to leverage the reputation, popularity, and brand loyalty associated with a well-known product to launch a new product. Successful brand extensions allow companies to diversify their offerings and increase market share.

Here are some key points about brand extension:

• Brand extension works when the original and new products share a common quality or characteristic that the consumer can immediately identify.
• Brand extension fails when the new product is unrelated to the original, is seen as a mismatch, or even creates a negative association.
• There are several different types of brand extensions, such as line extension, brand alliance, co-branding, brand franchise extension, and licensed brand extension.
• A successful brand extension strategy has a few elements involved that take it from a risky venture to a more sure-fire hit. A strong brand image is one of the key elements.
• Companies can use brand extension to launch new products in new categories seamlessly, meet their customers’ needs and wants, and receive higher revenue.

In summary, brand extension is a marketing strategy that allows companies to use an established brand name on a new product or product category to leverage the reputation, popularity, and brand loyalty associated with a well-known product to launch a new product. Successful brand extensions allow companies to diversify their offerings and increase market share.