Brands Brand extension and brand stretching
Marketers have long recognised that strong brand names that deliver higher sales
and profits (i.e. those that have brand equity) have the potential to work their magic
on other products.
The two options for doing this are usually called “brand extension” and “brand
Brand extension refers to the use of a successful brand name to launch a new or
modified product in a same broad market.
A successful brand helps a company enter new product categories more easily.
For example, Fairy (owned by Unilever) was extended from a washing up liquid
brand to become a washing powder brand too.
The Lucozade brand has undergone a very successful brand extension from
children’s health drink to an energy drink and sports drink.