Extending a brand is about leveraging its brand equity. Audience familiarity can be an enormous advantage when a new brand is associated with the existing one. The most important aspect of brand extension is determining how much equity to leverage. The need for brand extension may be driven by some of the following circumstances:
- Introduction of new products or services within a company
- Introduction of new initiatives or organizations within a company
- Introduction of a new online presence
- Acquisition of a company to be integrated
Some examples of extended brands include Fed Ex Home Delivery, Nike Air Jordan, Publix Greenwise and The UPS Store.