Brand extensions refer to the practice of using an established brand name to launch new products in different categories, leveraging the brand's existing reputation and consumer loyalty. This strategy helps companies enter new markets more easily and can enhance overall brand equity by associating positive perceptions from the original product with the new offerings. Effectively executed brand extensions can lead to increased sales and market share while reducing the risks associated with launching completely new brands.
congrats on reading the definition of brand extensions. now let's actually learn it.