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Brand Extension
Brand extension, also known as line extension or flanker strategy, is the process of using an existing brand name to enter a new product category or market. It's a common strategy for businesses to leverage their existing brand equity to introduce new products to their customer base.
For example, a shoe company that primarily sells athletic shoes may decide to launch a new line of casual shoes under the same brand name. This approach allows the company to leverage its existing brand recognition and customer loyalty to promote the new product. Other examples of brand extension include a coffee company launching energy drinks, a software company offering cloud storage services, or a clothing retailer introducing home furnishings. Overall, the goal of brand extension is to diversify a company's offerings and expand its reach in the market while maintaining a consistent brand identity.