Brand extension is when a famous brand introduces new products using its well-known name. For example, if a popular cookie brand starts making ice cream, they’re using their trusted name to sell something new. This strategy relies on the brand’s positive reputation to make people more likely to try and enjoy the new products.
The goal is to expand into different areas or offer different kinds of products while keeping the strong connection and loyalty they have with their customers. This helps them start these new ventures successfully because they’re building on the love and trust they’ve already earned.
Here’s why it’s a smart move:
- It uses the brand’s good reputation to sell new things.
- People are more likely to try something new if it’s from a brand they already like.
- Introducing new products under a well-known brand name can help them enter new markets faster.
- It can be cheaper than creating a whole new brand from scratch.