What is Line Extension?

Legal Definition
A firm markets one or more new products in an established and well-known brand name as a multi-product branding strategy. The objective is to take advantage of widespread name recognition of the original brand and satisfy different customer needs or market segments. Line extension is used by some marketing experts and ignored by others. As an example, shampoos, bath soaps, body powders, and the like being introduced under a famous perfume’s name by the popular perfume maker. Also known as brand extension.