brand extension

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Brand Extension

The act or practice of adding a new product under the same brand name. This allows a company to introduce a new product without having to build up a whole new customer base for it. For example, when Jimmy Dean introduces a new flavor of sausage, it may put the Jimmy Dean name and logo on the wrapping. This is intended to encourage people who like other Jimmy Dean sausages to view the new flavor favorably and be more inclined to buy it.
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brand extension


brand transference

the use of an existing BRAND for new or modified products. Where the new product is in a significantly different category this is called ‘brand stretching’. Brand extension seeks to capitalize on consumer awareness of and loyalty towards a firm's established brands in order to gain rapid consumer approval and acceptance of the new or modified product.

Where a modified product simply serves another segment of the same market the term brand extension is generally used (see MARKET SEGMENTATION). The term brand transference is used where an established brand name is associated with a new product serving a different market. For instance, the manufacturer of a well-known vacuum cleaner might use that brand name to launch a new product in some other market, for example washing machines. See PRODUCT POSITIONING.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
"It hurts sales when you have only one item in a category, so expanding the flavor options was the logical product extension for us, but we wanted to put a creative spin on it." For more information, visit
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He explained how important is it to add value every time a product extension happens.
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Future product extension plans revealed by the companies include offering Mirada's PET/CT viewer and RTist(TM) applications on AVIA(1).

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