Brand Extension

Brand Extension is a marketing strategy that involves using an existing and established brand to launch a product or service in a new product category, different from the one in which the brand usually operates.

A cosa serve / Perché è importante

This strategy serves to leverage the awareness, trust, and reputation (Brand Equity) of the main brand (called the Parent Brand or Master Brand) to reduce the costs and risks associated with entering a new market. It allows for quicker adoption by consumers, who already know and trust the name.

Quando si usa / In che contesto è utile

It is used when a company wants to diversify its business. It is effective if the fundamental values of the brand (e.g., "design", "innovation", "reliability") are transferable and relevant to the new product category as well.

Esempio pratico

• Yamaha: uses the same brand to sell products in highly diverse categories such as motorcycles and musical instruments (pianos, guitars).

• Armani: has extended from high fashion to fragrances, furnishings (Armani Casa), and even hotels.

• Caterpillar: known for construction machinery, it has extended the brand to safety footwear and apparel.