Brand Extension

A common method of launching a new product by using an existing brand name on a new product in a different category. A company using brand extension hopes to leverage its existing customer base and brand loyalty to increase its profits with a new product offering.

For brand extension to be successful, there usually must be some logical association between the original product and the new one. A weak or nonexistent association can result in brand dilution. Also, if a brand extension is unsuccessful, it can harm the parent brand.

The following are all examples of brand extension:

Starbucks coffee company creating Starbucks ice cream, to be sold not at Starbucks retail stores but in grocery stores. The ice cream flavors were based on the flavors of frappucinos Starbucks sold in its coffee shops.

Quaker, a popular oatmeal producer, creating Quaker granola bars, also made with oatmeal.

Celebrity homemaker Martha Stewart creating the Martha Stewart Home Collection of products such as bathroom accessories and bedding.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • Brand Extension — Die Artikel Imagetransfer und Markentransfer überschneiden sich thematisch. Hilf mit, die Artikel besser voneinander abzugrenzen oder zu vereinigen. Beteilige dich dazu an der Diskussion über diese Überschneidungen. Bitte entferne diesen Baustein …   Deutsch Wikipedia

  • brand extension — Mktg the exploitation, diversification, or stretching of a brand to revive or reinvigorate it in the marketplace. Products developed in the brand extension process may be directly recognizable derivatives or may look and feel completely different …   The ultimate business dictionary

  • brand extension — Using a successful brand name to launch a new or modified product in a separate category. A successful brand helps a company enter new product categories more easily. For example, a car manufacturer may use a brand name to launch a lawn mower.… …   Big dictionary of business and management

  • brand extension — …   Useful english dictionary

  • brand extension strategy — ➔ strategy …   Financial and business terms

  • brand extension strategy — /ˌbrænd ɪk stenʃən ˌstrætədʒi/ noun the applying of an existing brand name to a new product …   Marketing dictionary in english

  • WWE Brand Extension — The World Wrestling Federation/Entertainment (WWF/E) Brand Extension was a process first used in 2002 by said professional wrestling promotion as a means of providing separate brands of wrestling through its two top shows, Raw and SmackDown! ,… …   Wikipedia

  • WWE Brand Extension — Le Brand Extension (« Extension de la marque ») de la World Wrestling Entertainment a été utilisé la première fois le 5 mai 2002 comme terme pour désigner la séparation de ses shows télévisés en deux divisions distinctes et exclusives,… …   Wikipédia en Français

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