Category Extension

Posted in Marketing and Strategy Terms, Total Reads: 8794
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Definition: Category Extension

Category or Brand Extension is a strategy by which, a company uses the same brand to enter into a completely unrelated product segment. The company leverages on the brand equity and success of its existing brand to introduce the new product to increase market acceptance.

For example, Godrej which was originally known for locks and cupboards through category extension leveraging on the brand name “Godrej” entered into product segments like refrigerators, furniture and real estate.

We can use the following matrix to identify the different brand strategies of “ITC” and its sub-brand “Classmate”:

Classmate Brand Extension: Classmate Notebooks, Classmate Pens, Classmate Pencils, Classmate Erasers, Classmate Sharpeners, Classmate Sketch-pens, Classmate Paints, Classmate Geometry Box.

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