Brand Extension

Added on by James Cronin.

Strong brand names are able to move into other areas once brand equity and recognition are established. 'Brand Extension' is the term used when referring to a successful brand name launching a new product. A good example of this is how Fairy extended from a washing up liquid household name to become a washing up powder brand too.


Lucozade have also managed to successfully extend their brand from a children's health drink to a sports and energy drink and now even bottled water.

Lucozade are able to achieve this extension because their brand name has become recognisable and trustworthy for consumers. From the point of view of retailers and consumers there is perceived less risk with the new product if it carries a familiar name. They associate the quality of the brand with the new product.