A brand extension extends a current brand name to new or modified products in a new category. It refers to a company’s use of an established brand to introduce a new product. For example, Kellogg’s has extended its Special K cereal brand into a full line of cereals plus lines of crackers, fruit crisps, snack and nutrition bars, breakfast shakes, protein waters, and other health and nutrition products.
A brand extension gives a new product instant recognition and faster acceptance. It also saves the high advertising costs usually required to build a new brand name.