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Category Extension - Meaning & Definition

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: August 03, 2023Read time:

What is 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.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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