A brand extension is a marketing strategy used by companies to leverage the reputation of an existing brand to create a new product or service. It is a way of expanding the scope and reach of a company’s brand recognition by leveraging the existing goodwill and reputation of the brand identity. The goal is to use the existing brand equity to introduce a new product or service with a lower cost of marketing and to attract new customers. Brand extension can be used with product extensions, line extensions, multiple brands, sub-brands, brand derivatives, and so on.