Brand extension

Is a marketing strategy where a company uses its well-established brand name and reputation to launch a new product or service in a different product category or market segment. The aim is to leverage the strong equity of an established brand to boost the chances of success for a new product or service. It is also vital that the new offering aligns with the brand’s core values to prevent diluting its image or risking brand erosion. For instance, Ritz-Carlton extended its brand from the hotel industry to the cruise segment with The Ritz-Carlton Yacht Collection.