Which of the following is an example of brand extension?

• A. Launching a new flavor in an existing snack line
• B. Introducing a new product category under the same brand name
• C. Adding a new package size in the existing line
• D. Rebranding an existing product

Answer: (B)

Brand extension happens when a brand uses its name to enter a product category it hasn’t previously offered. By introducing a new product category under the same brand name, a company leverages its existing trust and recognition to attract customers in a new market segment. That is why introducing a new product category under the same brand name is a brand extension—it moves into a different category while keeping the same brand identity.

Launching a new flavor in an existing snack line stays within the same product category, simply offering another variant, so it’s a line extension. Adding a new package size also stays in the same category and line, another form of line extension. Rebranding an existing product changes the brand’s image or positioning, which is not extending into a new category.