What is a brand extension?

A brand extension occurs when a company takes an existing brand name and uses it to introduce a product in a new category. This strategy leverages the established reputation and recognition of the brand to enter new markets or product lines, making it easier for consumers to accept the new offering. By using an existing brand name, companies can benefit from the positive associations that consumers already have, which can lead to quicker acceptance and higher sales.

For instance, if a well-known beverage brand decides to launch a line of snack foods under the same brand name, this would be considered a brand extension. The consumers' familiarity and trust in the beverage brand can encourage them to try the new snacks, facilitating market penetration.

The other options, while related to product strategy, do not accurately define brand extension. A narrow focus on existing products pertains more to product specialization rather than extending a brand. Improving existing product features involves enhancing the current offerings without venturing into new categories, and collaborating with existing brands signifies a partnership rather than a brand extension. Thus, the definition provided captures the essence of what a brand extension truly represents in marketing strategy.