Brand Extension

Brand Extension

Multiproduct branding strategy whereby a firm markets one or more new products under an already established and well known brand name. The objective is to serve different customer needs or market segments while taking advantage of the widespread name recognition of the original brand.

http://www.businessdictionary.com/definition/line-extension.html

Today I bought a gift for my friend’s birthday from Fruits & Passion.  I am not loyalty customer for this brand, but I have already purchased a few products.  When I was choosing what I wanted to buy, I found out they did some brand extension to their products.  I bought a bottle of perfume from here before, now they have the hand lotion, bath foam, and shower gel with the same scent.  I was surprised to see that and I found it interesting too because I can combine them and make them to be a nice set of gift.

The use of same brand on existing product for a new product in different category increases rate of new acceptance and purchase intention to consumers.

There are certain advantages of brand extension. 

It can increase the brand image and the risk perceived by the customers will reduce.  It can make the acceptance of new product easily.