Query: What are the benefits of brand extension?
Context: Brand extension has a number of key benefits. Because brand extension involves leveraging existing brand equity, it can result in faster entry into new markets as the brand’s credibility is transferred to the new product or service. Brand extension is cost-efficient: there’s no need to develop an entirely new brand under which to launch the new product or service, and less needs to be spent on brand awareness campaigns. When done correctly, brand extensions can deliver increased sales and market share by capitalizing on the company’s existing customer base to buy the new offering.