Brand extension is a marketing strategy where a company uses an existing brand name to launch new products or services in different categories. This approach leverages the established reputation and customer loyalty of the original brand, making it easier to attract consumers to the new offerings. For example, if a popular snack brand like Lay's introduces a line of dips, it benefits from the recognition and trust associated with its chips. Successful brand extensions can lead to increased sales and market share, but they also carry risks. If the new product fails to meet customer expectations, it can negatively impact the original brand's image. Companies like Coca-Cola and Apple have effectively used brand extension to diversify their product lines while maintaining their core brand identity.