Brand Extension

Posted in Marketing and Strategy Terms, Total Reads: 2823

Definition: Brand Extension

It is the scenario when the firm enters a new product category under the umbrella of the original brand name which is called as the parent brand. Brand extension is usually done in related categories.

It helps in leveraging the existing consumer base and loyalty that the brand name commands to bring in greater profits. However, extreme care needs to be taken before experimenting with it as the failure or shift from the brand’s core values in the new category can adversely affect the parent brand.

Example : Dove which was earlier in the soap category has also come up with Dove Shampoo which is entirely a different category called hair care.




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